Investment Law No. 72 of 2017 is the backbone of Egypt's foreign investment framework: written investor guarantees, a package of general and special incentives, and several regulatory tracks through investment zones, technological zones, and free zones. But the benefits are not automatic: special incentives are conditional, the Golden License has criteria, and the guarantees work for those who document their position correctly from incorporation. This guide explains what the law actually grants and how its benefits are claimed.
Core Guarantees
The law guarantees fair and equitable treatment and equality between the foreign and the national investor, with preferential treatment possible by exception through a Cabinet decree on reciprocity grounds. Nationalization is prohibited; expropriation is allowed only for public utility against just compensation paid in advance at the assets' economic value, freely transferable; seizure, confiscation, or freezing require a court order or final judgment; and project licenses may not be revoked or suspended, nor allocated land reclaimed, until the investor has been notified of the violations, heard, and given an adequate grace period to rectify. The investor may transfer profits abroad and liquidate the project and transfer the proceeds, with the State committed to free, prompt cash transfers in a convertible currency without delay. The law also grants the foreign investor residence in Egypt for the term of the project.
General Incentives
Company incorporation contracts and the land-registration contracts needed for them are exempt from stamp duty and notarization and publicity fees for five years from commercial-register entry, and a uniform customs duty of only 2% applies to the value of machinery, equipment, and devices imported for formation. These incentives apply to all projects governed by the law except those operating under the free-zone framework.
Special Incentives
The law grants an investment incentive as a deduction from taxable net profit: 50% of investment costs for Sector A - the geographic areas most in need of development under the investment map - and 30% for Sector B, which covers the rest of the Republic for specified projects such as labor-intensive and small and medium enterprises, capped at seven years from the start of activity. Eligibility requires a newly incorporated company or establishment for the project, within the statutory timeframes, and meets financial controls detailed in the Executive Regulations. A Cabinet decree may add further incentives, including the State bearing part of utility connection costs, refunding half the land value for industrial projects that start production within two years of handover, and allocating land free of charge to certain strategic activities.
The Golden License and the Zones
For qualifying strategic activities, the Cabinet may grant the "Golden License": a single comprehensive approval to establish, operate, and manage the project, including building permits and the allocation of required real estate, self-executing without further procedures. Alongside it, the law offers three regulatory frameworks: investment zones run by licensed developers, technological zones for knowledge industries, and public and private free zones, which remain outside the local customs and tax territory against an annual levy on revenues.
Dispute Settlement
The investor has graduated channels: the Ministerial Committee for Investment Disputes Resolution for disputes with the State or its entities, the Ministerial Committee for Investment Contracts Disputes Settlement for contracts to which the State is a party, then arbitration under Egypt's Arbitration Law No. 27 of 1994 - and the law itself established the Egyptian Arbitration and Mediation Center in Cairo for investor disputes by agreement of the parties.
Our Role
From our Cairo branch, we review a project's incentive eligibility before incorporation rather than after, prepare special-incentive and Golden License applications, build the incorporation documents so the contractual guarantees are preserved, and represent investors before the dispute-settlement committees when needed.
See our foreign investment in Egypt and Entering the Egyptian Market: Legal Consultation Before Commitment for related work.
Frequently asked questions
Do the incentives apply to existing companies?
The general incentives apply to all projects governed by the law; the special incentives require a new company incorporated within the timeframes set by the law and its regulations.
What is the difference between Sector A and Sector B?
Sector A covers the areas most in need of development and grants a 50% deduction of investment costs; Sector B covers the rest of the country for specified activities at 30%.
Is the Golden License available to any project?
No; the government grants it to projects meeting criteria such as significant export ratios or foreign-currency financing, under Cabinet controls.
How are the guarantees enforced in practice?
By building them into the documents from the start and documenting the file; in a dispute, the law's committee and arbitration channels are activated.