Display result
Issue-specific Reforms > Provision of Industrial Land

  • The lack of objectivity and transparency in the allocation and pricing of land, as well as the absence of comprehensive information on the availability of land, prices, and acquisition procedures.
  • Land policies are developed in the absence of an updated integrated land information system.
  • Lack of standardized procedures for land allocation across the various government entities, and lengthy and cumbersome allocation procedures.  

Issue-specific Reforms > Provision of Industrial Land

  • The Prime Minister should promptly issue a decree to clarify jurisdictional issues related to industrial land; the decree should also clearly outline the role and function of the New Urban Communities Authority and IDA; the former should have jurisdiction over the land, infrastructure, and the provision of utilities, while the latter should have sole jurisdiction over land administration and allocation.
  • Resolve the legal conflict regarding the jurisdiction of IDA over industrial land, as stipulated in the law regulating IDA. If needed, issue a new law that clearly delineates the jurisdictional authority of different government entitles over industrial land and the responsibility for providing utilities and allocation of land to the final beneficiary.
  • Create a well-integrated and accessible information system for industrial lands; ensure that it remains updated.
  •  
  • Replace the numerous laws governing state land with a single unified and simplified law to administer it.  
  • IDA should be designated as the sole entity for interacting with investors. 
  • Create a land bank to serve as a database, listing all available industrial land, the price of each plot of land, and information regarding the current status of utilities and infrastructure.  

Issue-specific Reforms > Provision of Industrial Land

  • A coordinating council, affiliated with the Cabinet, has been established to study the challenges facing investors in industrial zones. 
  • The Cabinet contracted a consultancy firm (MegaCom) to examine the challenges and barriers facing investors in industrial zones and develop solutions. The firm was to consult with investors and seek their feedback and views on the barriers and solutions. The consultancy contract is funded by the Ministry of Finance.
  • FEI and MegaCom discussed the recommendations included in the study. It was agreed that investors should be able to lease the land plot for ten years; the plot may be purchased if the investor demonstrates seriousness about the investment. 
  • Investors can acquire industrial land by accessing the investment map posted on the website of GAFI and, according to the type of projects to be established in each region. That said, many users find it difficult to deal with this online map.

Issue-specific Reforms > Provision of Industrial Land

  • IDA lacks the financial resources needed for equipping industrial land with utilities. Together with the high cost of bringing utilities to undeveloped plots, small investors face a shortage of appropriate industrial land. IDA’s lack of financial resources is likely to hinder its ability to deliver on its plan of making available 60 million square meters of land by 2020.
  • Lack of industrial land plots (500 square meters) available to small enterprises in industrial zones, in line with the Industrial Licensing Law.
  • Excessive increases in land prices and the lack of pricing standards.

Issue-specific Reforms > Provision of Industrial Land

  • Allocate additional land to IDA to increase the industrial land supply available for investors and develop objective and transparent mechanisms for land allocation.
  • Make available land plots and facilitate land acquisition procedures. 
  • Authorize the development of public markets, major commercial complexes, and hypermarket chains, which are critical for marketing locally manufactured products at competitive prices and increasing demand for these products.

Issue-specific Reforms > Provision of Industrial Land

  • In June 2019, the Cabinet approved a proposal, submitted by the coordinating council for Industrial Zones that allows selling industrial land plots on installments at an annual interest rate of 7%, rather than the interest rate set by CBE.  This decision, which will remain in effect for three years only, aims to attract more investments to the industrial sector, in order to expand the establishment of new industrial zones to increase youth employment opportunities. 
  • In July 2019, the Internal Trade Development Authority) signed eight partnership agreements with a group of investors and commercial developers. Under these agreements, commercial and logistic zones will be established in a number of governorates including Sharqiya, Menoufia, Gharbia, Beheira, Luxor, Qena, Fayoum, and the New Obour City. It is expected that the agreements will attract investments worth LE 23 billion, and provide approximately 200,000 direct and indirect job opportunities, as well as make available commercial centers that meet all the needs of citizens at reduced prices.

Issue-specific Reforms > Provision of Industrial Land

  • Land registration requires conducting cadastral surveys. However, the current capacity of the Egyptian Survey Authority does not allow it to respond to survey requests nation-wide in a timely manner, thus, expedited requests for registration are put on hold. 

Issue-specific Reforms > Provision of Industrial Land

  • Authorize the establishment of accreditation offices to carry out cadastral surveys to facilitate the land registration process (similar to the case under the Simplification of Licensing Procedures for Industrial Enterprises Law and the Investment Law, which authorize the establishment of accreditation offices to facilitate the licensing process); allow security-cleared entities to use modern techniques of geographic photography.

Issue-specific Reforms > Provision of Industrial Land

Failure to fully enforce some of the provisions of Law No. 15 of 2017

  • The New Urban Communities Authority, which is affiliated with the Ministry of Housing, Utilities, and Urban Communities, continues to require investors to provide a bank guarantee to acquire land in industrial zones; this is an exaggerated requirement as it was revoked under Law No. 15 of 2017.

Issue-specific Reforms > Provision of Industrial Land

  • Fully enforce the provisions of Law No. 15 of 2017, which revoked the bank guarantee requirement, as a proof of the seriousness of purpose of investors who are interested in acquiring industrial land.

Issue-specific Reforms > COVID-19 Crisis

Several factories faced a number of challenges, including the following:

  • Meeting their obligations towards their workforce—payment of salaries and other benefits.
  • Increased financial burdens associated with the additional costs of meeting public health requirements and raising the awareness of the workforce to prevent the spread of COVID-19.

Issue-specific Reforms > COVID-19 Crisis

  • Grant industrialists a three-month exemption from paying the following obligations:
  1. Income tax
  2. Salary tax 
  3. Social Insurance contributions
  4. Electricity bills
  •  Expedite the disbursement of relief funds to enterprises that were forced to partially or fully shut down, whether the shutdown was due to economic reasons or in response to an administrative order. Funds are to be made available from the Emergency Fund, which is partially financed through monthly contributions paid by public and private sector employers who hire thirty (30) ‎employees or more (1% of the basic wage of employees).

Issue-specific Reforms > COVID-19 Crisis

  • Factories and tourist establishments are permitted to defer real estate tax payments for three months and pay delinquent real estate taxes in installments over six months. 
  • Suspension of the administrative attachment imposed on all taxpayers who have outstanding tax liabilities against paying 10% of these liabilities, as well as forwarding their tax files to the tax dispute resolution committees for settlement.
  • The stamp duty rate on the Egyptian Exchange transactions was reduced to 1.25 per thousand for non-residents, and 0.5 per thousand for residents (down from 1.5 per thousand). 
  • Non-residents are granted a permanent exemption from the capital gains tax, and residents are granted a deferral of the tax through 1/1/2022.
  • Lowering of the withholding tax imposed on dividend distributions made by Egyptian Exchange-listed companies to 5%—a 50% reduction. 

Issue-specific Reforms > COVID-19 Crisis

  • Factories are struggling with collecting receivables, both in the domestic and foreign markets.

Responsible Entities

Date 6/30/2020

Issue-specific Reforms > COVID-19 Crisis

  • Grant manufacturers an exceptional moratorium on bank payments, and waive any late payment penalties or fines that would otherwise apply. 

Responsible Entities

Date 6/30/2020

Issue-specific Reforms > COVID-19 Crisis

  • On March 22, 2020, CBE issued a directive placing a moratorium on repayments of principal and interest under existing credit facilities for 6 months.  
  • The directive applies to all clients.

Responsible Entities

Date 6/30/2020

Issue-specific Reforms > COVID-19 Crisis

  • Factories in free zones are facing increasing financial burdens.  

Issue-specific Reforms > COVID-19 Crisis

  • Exempt all free-zone factories from paying rent for six months.
  • Ensure transparency in setting and applying tolling rates.

Issue-specific Reforms > COVID-19 Crisis

  • The General Authority for Investment and Free Zones (GAFI) issued a decision deferring rent payments.

Issue-specific Reforms > COVID-19 Crisis

  • Delays in collecting payments on goods and services associated with national projects.

Responsible Entities

Date 6/30/2020

Issue-specific Reforms > COVID-19 Crisis

  • Expedite payments to businesses engaged in national projects.

Responsible Entities

Date 6/30/2020

Issue-specific Reforms > COVID-19 Crisis

  • Businesses are facing challenges related to industrial land availability and the issuance of required licensing.

Issue-specific Reforms > COVID-19 Crisis

  • Expedite the issuance of permits and licenses and the allocation of land for industrial use.

Issue-specific Reforms > COVID-19 Crisis

  • In line with the Prime Minister’s directives, the Industrial Development Authority (IDA) issued several consecutive decisions, among which is a directive extending the expiration date of licenses and industrial registrations until further notice.
  • IDA is continuing with issuing licenses and industrial registration for enterprises operating in a number of manufacturing areas, including health products, pharmaceuticals, cleaning and disinfection products, masks, and food processing.

Issue-specific Reforms > COVID-19 Crisis

  • Not all industries are equipped to turn to shift work; the feasibility of shift scheduling depends on the nature of the industry. 

Responsible Entities

Date 6/30/2020

Issue-specific Reforms > COVID-19 Crisis

  • Avoid taking a broad-brush approach when looking at the different industries; take into consideration the nature of each industry.

Responsible Entities

Date 6/30/2020