Investment Conditions in Egypt For Foreigners And The Advantages of The New investment law
Investment conditions in Egypt for foreigners. The investment law in Egypt has always aimed at facilitating cross-border business operations. In addition to providing as many guarantees as possible to protect trade from any arbitrary decisions. What are the conditions for investing in Egypt for foreigners? What are the advantages of the new investment law?
Investment conditions in Egypt for foreigners
Foreign investment is represented in moving capitals, through the investment components of the private sector. These components are in the form of contributions, some total and others partial. Contributions are subject to a certain minimum.
For the success of a specific investment in any country, four main conditions must be available in this country, each with its own role. Which:
*. Investment climate: It means the degree of ease of achieving investment. That is, the possibility of entering and establishing projects within the country, and achieving the desired profits from those projects easily. As well as licenses and private facilities whose ultimate goal is the success of investment, especially in the fields of energy as well as modern communications.
*. Political conditions: It is one of the most important conditions for investment in Egypt for foreigners. As there is a strong relationship between the investment of foreign companies and the basic political trends of the investment country. Like the influx of investment of Western and American origin into Japan that the world has seen, which started from the 1950s.
*. Documented international experiences: means the experiences or experiences documented for this country at an earlier time. Foreign investment does not flow to the country that needs it, but rather to the country that he feels can really afford it. In addition, foreign investments do not continue to flow into a particular country unless there are strong domestic investments that will effectively help foreign investments in increasing the country’s productive activity.
*. Economic conditions: It is one of the conditions for investment in Egypt, which is related to the issue of supply and demand. The size of the market is not measured by the number of the population of the country, but by the average share of each individual in the society in the national income of the country. The higher the per capita share, the higher the purchasing power, which is one of the factors affecting the success of investment projects inside the country.
Features of the new investment law
The new investment law in Egypt has its advantages that aim to provide an ideal environment conducive to the success of any investment. Among these features are the following:
*. The investor can apply for the services he wants inside the country via the Internet. In addition to the possibility of paying application fees electronically from his place, without the need to go anywhere.
*. The investor can transfer his capital or the profits from his investment in projects established inside Egypt abroad. However, the bank must be one of the banks registered with the Central Bank.
*. Defining and clarifying the timetables available for the services subject to investment in Egypt. This allows government authorities to respond to all investment requests during that period.
*. Giving the investor the opportunity to hire foreign workers in his project. However, this is conditional after the percentage of that labor force exceeds 10 percent of the total number of workers in the project. In addition, the investor can use up to 20% foreign labor. This shall be in the event that the national competencies with the required qualifications are not available to work in that project. However, this is also subject to obtaining official approval from the General Authority for Investment.
*. Allowing for a set of new incentives and tools aimed at settling all disputes that may cause disruption to the investment movement. This plays an important role in providing advanced and modern work environments that help increase the activity and success of the investment movement. That means reducing bureaucracy (the use of force in enforcing laws in some societies that care a great deal about order).