Investment Policy Monitor
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The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).
Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.
UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.
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UNCTAD Investment Policy Monitor The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).
The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).
The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.
Classification of the nature of measures
More favourable to investors
Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.
Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).
Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.
Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.
Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).
Less favourable to investors
Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.
Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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- Egypt - Adopted a decree providing on private free zones
Egypt
Adopted a decree providing on private free zones
04 Jun 2023On 4 June 2023, the Prime Minister of Egypt issued Decree No. 2140 of 2023, amending Article No. 76 and introducing Article No. 76 bis to the Executive Regulations of the Investment Law No. 72 of 2017. The Decree provides the following regarding the private free zones:
1. Definition and Purpose: Private Free Zones (PFZs) are designated areas where private investors can establish and operate businesses with special economic and regulatory incentives, separate from the standard national territory. They aim to encourage foreign and domestic investment, promote export-oriented projects, and boost industrial, technological, and commercial activities. (Article 76 bis).
2. Ownership & Operation: The project must be in the form of a joint stock company or a limited liability company. The General Authority for Investment and Free Zones (GAFI) supervises and monitors the activities of PFZ projects to ensure their proper functioning. (Article 76)
3. Incentives (Article 76). PFZs offer various incentives to attract investment, including:
- Tax and Customs Exemptions: Exemptions from customs duties and taxes on imports, exports, and goods manufactured within the zone.
- Simplified Administrative Procedures: Streamlined processes for establishing and operating businesses within the zone.
- Flexible Labor Regulations: More relaxed labor laws to facilitate business operations.
- Profit Repatriation: Freedom to repatriate profits and capital.
4. Governance: The governance of PFZs is primarily under the jurisdiction of GAFI, which:
- Supervision: Oversees and monitors the activities of PFZ projects to ensure compliance with regulations.
- Regulatory Authority: GAFI's Board of Directors issues procedures and conditions for establishing sub-service projects within the PFZs, subject to Cabinet approval.
(Article 76: Outlines GAFI's role in supervision and regulation. Article 76 bis expands GAFI's authority to include the establishment and regulation of sub-service projects within PFZs.)
5. Target Sectors: PFZs are typically focused on sectors that align with Egypt's economic development goals, including:
- Industrial Sector: Execution management works for industrial projects and service projects, production equipment, and production lines.
- Service Sector: Projects that invest in the field of developing internal trade.
(Article 76 bis: Specifies the sectors eligible for investment within PFZs.)
Nature of measure:
- Promotion
Type:
- Promotion and facilitation (Investment facilitation , Special economic zones)
Industry:
- Manufacturing
- Services
Inward FDI:
YesOutward FDI:
NoSources:
- Matouk Bassiouny & Hennawy, News Alert: New Amendment to the Investment Law’s Executive Regulations in Egypt, https://matoukbassiouny.com/news-alert-new-amendment-to-the-investment-laws-executive-regulations-in-egypt/, 22 Jun 2023
- Hegazy Law, Prime Minister Decree no. 2140 of 2023 Amending Article 76 of Executive Regulations of the Investment Law No. 72 of 2017, https://www.hegazylaw.com/private-free-zones/, 15 Jun 2023
- Adsero, Free Zones and their Amendments in Light of the Cabinet Decree No. 2140 of 2023, https://adsero.me/free-zones-and-their-amendments-in-light-of-the-cabinet-decree-no-2140-of-2023/, 15 Jun 2023
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The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).
Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.
UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.
-
UNCTAD Investment Policy Monitor The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).
The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).
The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.
Classification of the nature of measures
More favourable to investors
Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.
Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).
Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.
Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.
Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).
Less favourable to investors
Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.
Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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