General Authority for

Investment & Free Zones

ho re e

Who is GAFI

Establishment & Role

•Working under the umbrella of Ministry of Investment & International Cooperation (MOIC), the

General Authority for Investment & Free Zones (GAFI) was established in 1971 to be the principal

governmental authority concerned with regulating & facilitating investment in Egypt.

Vision

• Advanced governmental authority that provides outstanding services for investors and attracts major investments to Egypt to achieve Sustainable Development.

Framework

• GAFI’s operation is based on seven main pillars, as follows:

Institutionally supporting Small &

Medium Enterprises through Bedaya Centre for Entrepreneurship &

SMEs Development

Establishing Investment Zones to accelerate

the expansion of competitive strategic

clusters

Establishing, managing &

developing Free Zones to help increase Egyptian

exports

Promoting Egypt’s

potential sectors and

investment opportunities

to attract investments

Regulatory under

the provisions of

Investment and

Corporates Laws

Providing & developing

various investment services

through the One-Stop-Shop

GAFI Framework

Settling Investor’s

disputes and

problems

The Way Forward

Egypt started its political transformation

triggered by its people calling for social

justice paralleled with economic

development

hy gypt

Why Egypt?

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

• Gate to Africa &

the Middle East

• Center of the

World

Location

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

Population

90 million

Why Egypt?

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

FTAs

• COMESA

• GAFTA

• EU Egypt

• QIZ

• Aghadir

• EFTA

• Egypt Mercosur

• Egypt Turkey FTA

Why Egypt?

Why Egypt?

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

• Over 26 million

• 60% under 30 • Competitive wages

Labor

Force

Why Egypt?

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

• 20 Airports

• 191 Railway stations

• 15 Seaports & Suez Canal

• Subway network

Transportation

Why Egypt?

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

• 108,784 km Road Network

• Communication Networks

Why Egypt?

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

Mineral & Renewable

Resources

Why Egypt?

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

Income

Tax

22.5%

Why Egypt?

Central location & proximity to

the global market

Access to a large consumer

base in Egypt and beyond

Large pool of trained and

skilled labor

Revamped infrastructure base

Abundance in natural

resources

Competitive tax rates

Growing economy

• Economic Indicators

• International Ranking

conomic

ndicators

GDP Growth Rate

1.8%

2.2% 2.1% 2.2%

4.4% 4.3%

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Sectoral Contribution to GDP

17%

14%

12%

11%

5%

Industry Retail Agriculture Real estate construction

Source: Central Bank of Egypt

2.2

4.0 3.8

4.1

6.4 6.8

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Source: Central Bank of Egypt

USD Bn

Net FDI Flows

FDI Inflows by Top Investing Economies

5.4

1.4

2

0.6 0.6 0.2 0.2 0.1 0.1 0.1

5.9

1.3

0.8 0.7 0.3 0.2 0.2 0.2 0.2 0.2

UK UAE USA Belgium KSA France Netherlands Qatar Luxembourg Bahrain

2014/15 2015/16

Source: Central Bank of Egypt

USD Bn

Latest Indicators

Exchange Rate

18.203 EGP/USD

In April 2, 2017

Net International

Reserve

$26.5 Bn February,

2017

Balance of

Payments

Surplus of $7 Bn in

the First half of

2016/17

Source: Central Bank of Egypt 20

Net FDI Flow

$4.3 Bn in the First

half of 2016/17

Egypt's Macroeconomic Targets

FY18/19

Sustainable real

GDP growth targeting 6%

Continued

investment in upgrading of

infrastructure

Improved export

performance

Increase spending

on health,

education and R&D

to at least

10% of GDP

Inflation Rate

within a range of

6 - 8%

Higher rates of

domestic

investment

Reducing the

fiscal deficit to 8 - 8.5% of GDP

Reducing the

government debt to a range of

80 - 85% of GDP

nternational

ankings

gypt

Sovereign Credit Rating

Revised Egypt’s Sovereign Credit outlook from

“Negative” in May 2016 to “Stable” in November 2016

• Forecasts Egypt’s economy to grow by 4.0% to 4.5%

in 2017-18

• Rated Egypt as “Stable” in January 2017

Last rated Egypt’s Sovereign Credit outlook in June 2015 as “Stable”

Doing Business

Ease In 2016 2017 Change in Rank

(2016 – 2017)

Doing Business 131 122 9

Starting a Business 73 39 34

Dealing with Construction

Permits 113 64 49

Getting Electricity 144 88 56

Egypt’s Competitiveness

0

10

20

30

40

50

60

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

81/139

94/141

107/144

118/148 119/144

116/140 115/138

Global Competitive Index (GCI)

2016/2017

25

nvetment

eforms

limate

Investment Climate Reforms

Policy, Institutional,

Procedural &

Administrative

Reforms

Sustainability

Economic Reforms

Comprehensive

Legislative Reforms

Economic Reforms

Fiscal Reforms:

•VAT

•Reprioritized Expenditure Program

Free Flotation of the Egyptian

Pound

Partial Lifting of Fuel Subsidies

Adjusting Electricity

Prices

Policy, Institutional, Procedural &

Administrative Reforms

Civil Service Law

Strategic Transformation

Cutting Through Red

Tape

The Supreme Council for Investment

Comprehensive Legislative Reforms

Procedural Facilitations

Guarantees & Incentives

Dispute Settlement

• Identifying key legislations affecting investment requiring reforms including Capital Market's

Law, Insolvency & Debt Restructuring law and at the core is the Investment Law

• Key benefits of the New Investment Law:

Sustainability

Improve Egypt’s International

Ranking

Cure Investors’ Challenges

Incentivize SMEs

Vote of Confidence

nvetment egimes

n gypt

Investment Regimes

Free Zones

Technological

Zones

Investment

Zones

Inland Investments

• Investment Incentives & Guarantees Law 8/1997 and Companies Law 159/1981

• GAFI acts as the official regulator for all incorporations & licenses

• Allows 100% foreign ownership of

ventures; in addition to a number of exemptions & incentives

• Investment Incentives & Guarantees Law 8/1997

• GAFI is the sole regulatory authority

• Full exemption from income tax & customs

• Ease of import & export

• Investment Incentives & Guarantees Law 8/1997

• Board of each zone issue approvals and permits

• Integrated clusters in all fields

• Unified equipment Custom tax of 2% • Exemption from the stamp duty,

notarization & Publicity fees for 5 years

• Proposed by the New Investment Law • Specialized in all Communication & IT

activities • Tax incentives ranging 30-40%

depending on the Zone’s location

• Board of each zone issue approvals and permits

Key Sectors

Agribusiness Engineering and

Electronics

Health Care Logistics Mining ICT Petrochemicals

Pharmaceuticals Real Estate & Construction

Retail Textile Tourism Renewable Energy

Automotive

rojects ega

The Development of the Suez Canal Region

1) The Economic Zone in the Suez

(Al-Sokhna)

2) West Qantara Area

3) The Technological Zone

4) Economic Zone in East Port Said

The New Administrative Capital

• A large scale project located 45 km east

of Cairo.

• Total Area: 170 Thousand Feddan

• Four construction companies have been

mandated to execute the infrastructure of

the 1st phase with a cost of EGP 4 billion.

• Project utilities are partially finished.

• Doesn't need special approvals.

• Land can be allocated through different

options

Development of 1.5 million Feddan

• Establishing Reef Company for this purpose

with a capital estimate of 1 billion dollars.

• Land will be allocated through usufruct.

• Investors can bid to reclaim 2000+ feddans.

• Bidding through Egyptian Countryside

Development Co.

• Can use Lands in:

Agriculture

Aqua framing

Logistical services

Industrial

Housing

The Golden Triangle

• Three main mining anchors generating

multiple industrial zones

• The main sectors under investigation are:

Mining Logistics

Industry Urban

Transport Agriculture

Energy Tourism

Ports Utilities Approx. 840 thousand feddans

The New Alamein City

• The project is on the Northwest coast and

represents approximately 12.8% of the total

area of Egypt.

• The project will attract investments in the

tourism, agriculture, industrial, commercial

and educational sectors.

• The government is currently working on the

project`s utilities.

Preliminary plan of new Alamein city

The Furniture City in Damietta

• An industrial project for the establishment

and the development of Damietta

governorate as furniture city on 333

Feddan.

• The aim is to host a cluster of Furniture

manufacturing and complimentary

industries, R&D center, furniture academy,

renewable energy station & hotel.

• The project doesn't need special approvals.

The logistics Center for Grain in

Damietta

• The project is on 4 Mn. Sq. meter

in Damietta governorate.

• Currently Damietta governorate

is the responsible authority but a

new development authority is

under formation.

Leather City in Al-Robbiki

• The project purpose is tanning and

manufacturing of leather.

• Creating a Leather Manufacturing Hub

in the Middle East.

• Total project size 1629 feddans.

Shorouk City

Badr City

Robbiki Leather City

45

The Opportunity in

Egypt is NOW

make sure you do not

Miss Out

General Authority for

Investment & Free Zones

General Authority for

Investment & Free Zones

3 Salah Salem Road, Nasr City, Cairo, Egypt

+2 02 240 55 452

info@gafinet.org

www.gafi.gov.eg