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:
GAFI Framework Promoting Egypt s potential sectors and investment opportunities to attract investments Establishing, managing & developing Free Zones to help increase Egyptian exports Regulatory under the provisions of Investment and Corporates Laws Providing & developing various investment services through the One-Stop-Shop Settling Investor s disputes and problems Establishing Investment Zones to accelerate the expansion of competitive strategic clusters Institutionally supporting Small & Medium Enterprises through Bedaya Centre for Entrepreneurship & SMEs Development
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 Location Gate to Africa & the Middle East Center of the World
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 Population 90 million Growing economy
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 COMESA GAFTA EU Egypt QIZ FTAs Aghadir EFTA Egypt Mercosur Egypt Turkey FTA
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 Labor Force Over 26 million 60% under 30 Competitive wages
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 Transportation 20 Airports 191 Railway stations 15 Seaports & Suez Canal Subway network
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 Income Tax 22.5% Growing economy
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 Sectoral Contribution to GDP 4.4% 4.3% 17% 14% 1.8% 2.2% 2.1% 2.2% 12% 11% 5% 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Industry Retail Agriculture Real estate construction Source: Central Bank of Egypt
Net FDI Flows USD Bn 6.4 6.8 4.0 3.8 4.1 2.2 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Source: Central Bank of Egypt
FDI Inflows by Top Investing Economies USD Bn 5.4 5.9 1.4 1.3 2 0.8 0.6 0.7 0.6 0.3 0.2 0.2 0.2 0.2 0.1 0.2 0.1 0.2 0.1 0.2 UK UAE USA Belgium KSA France Netherlands Qatar Luxembourg Bahrain Source: Central Bank of Egypt 2014/15 2015/16
Latest Indicators Net International Reserve $26.5 Bn February, 2017 Exchange Rate 18.203 EGP/USD In April 2, 2017 Net FDI Flow $4.3 Bn in the First half of 2016/17 Balance of Payments Surplus of $7 Bn in the First half of 2016/17 Source: Central Bank of Egypt 20
Egypt's Macroeconomic Targets FY18/19 Sustainable real GDP growth targeting 6% Continued investment in upgrading of infrastructure Reducing the fiscal deficit to 8-8.5% of GDP Reducing the government debt to a range of 80-85% of GDP Inflation Rate within a range of 6-8% Higher rates of domestic investment Improved export performance Increase spending on health, education and R&D to at least 10% of GDP
gypt nternational ankings
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 81/139 Global Competitive Index (GCI) 2016/2017 60 50 94/141 40 107/144 30 118/148 119/144 116/140 115/138 20 10 0 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 25
nvetment limate eforms
Investment Climate Reforms Economic Reforms Policy, Institutional, Procedural & Administrative Reforms Sustainability 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 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: Procedural Facilitations Guarantees & Incentives Dispute Settlement
Sustainability Improve Egypt s International Ranking Cure Investors Challenges Incentivize SMEs
Vote of Confidence
nvetment egimes n gypt
Investment Regimes 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 Zones 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 Free Zones Investment Incentives & Guarantees Law 8/1997 GAFI is the sole regulatory authority Full exemption from income tax & customs Ease of import & export Technological Zones 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
ega rojects
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. Robbiki Leather City Shorouk City Badr City
The Opportunity in Egypt is NOW General Authority for Investment & Free Zones make sure you do not Miss Out 45
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