Adopted a new decree on free zones
04 Jun 2023
On 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 amendment to Article 76 removes some of the conditions for establishing a Private Free Zone (e.g. minimum capital, project area and industrial workforce requirements, and the need for a suitable place in the Public Free Zone), retaining the following:
(i) The project must be a joint stock or limited liability company,
(ii) The proportion of exports must equal or exceed 80 per cent,
(ii) The project must comply with Egypt’s industrial, civil defence and fire hazard laws
In addition, art. 76 bis creates a new Private Service Free Zone (PSFZ), exempt from some of the conditions of art. 76, including the export requirement. The PSFZ will consist of a main service project to manage and allocate areas for sub-service projects carrying out similar activities in sectors listed in Article No. 1 of the Executive Regulations, including investment activity in the industry, agriculture, trade, education, health, transport, tourism, housing, construction and building, sports, electricity,energy, natural resources, water, communications, and technology sectors.
The Board of the General Authority For Investments (GAFI) will supervise and monitor the activities of private free zone, including PSFZ projects and set procedures and conditions for sub-service projects.
The new Article 76 bis outlines specific activities and conditions for establishing projects within Private Free Zones. Examples include:
1. Industrial Sector: Execution management works for industrial projects and production equipment and production lines.
2. Commerce Sector: Projects that invest in the field of developing internal trade.
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Type:
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Entry and establishment (Approval and admission)
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Promotion and facilitation (Special economic zones)
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Industry:
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