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General Authority for
Investment & Free Zones
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ho re e
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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:
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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
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The Way Forward
Egypt started its political transformation
triggered by its people calling for social
justice paralleled with economic
development
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hy gypt
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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
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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?
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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?
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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
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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
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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
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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
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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%
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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
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conomic
ndicators
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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
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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
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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
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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
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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
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nternational
ankings
gypt
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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”
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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
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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
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nvetment
eforms
limate
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Investment Climate Reforms
Policy, Institutional,
Procedural &
Administrative
Reforms
Sustainability
Economic Reforms
Comprehensive
Legislative Reforms
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Economic Reforms
Fiscal Reforms:
•VAT
•Reprioritized Expenditure Program
Free Flotation of the Egyptian
Pound
Partial Lifting of Fuel Subsidies
Adjusting Electricity
Prices
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Policy, Institutional, Procedural &
Administrative Reforms
Civil Service Law
Strategic Transformation
Cutting Through Red
Tape
The Supreme Council for Investment
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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:
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Sustainability
Improve Egypt’s International
Ranking
Cure Investors’ Challenges
Incentivize SMEs
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Vote of Confidence
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nvetment egimes
n gypt
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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
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Key Sectors
Agribusiness Engineering and
Electronics
Health Care Logistics Mining ICT Petrochemicals
Pharmaceuticals Real Estate & Construction
Retail Textile Tourism Renewable Energy
Automotive
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rojects ega
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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
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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
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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
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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
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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
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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.
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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.
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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
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The Opportunity in
Egypt is NOW
make sure you do not
Miss Out
General Authority for
Investment & Free Zones
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General Authority for
Investment & Free Zones
3 Salah Salem Road, Nasr City, Cairo, Egypt
+2 02 240 55 452
[email protected]
www.gafi.gov.eg
