Embed Size (px)
Citation preview
Arab Republic of Egypt General Authority for Investment
GAFI
Egypt at a glance 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020
Real GDP growth rate 4.3% 4.2% 5.3% 5.6% 5.6% (1st half 2019/20)
Inflation rate (CPI urban) 10.9% (Jan. 2016) 28.1% (Jan. 2017) 17.1% (Jan. 2018) 12.7% (Jan. 2019) 7.1% (Jan. 2020)
4.2% (Jul. 2020)
Population 89 Mn (Jul 2015) 91 Mn (Jul 2016) 97.6Mn (Sep. 2018) 99.6 Mn (Nov. 2019) 100.4 Mn (Aug. 2020)
Net FDI (USD bn) 6.9 7.9 7.7 8.2 5.9 (Jul. 2019-Mar.2020)
International Reserves (USD bn) 17.5 (Jun. 2015) 31.3 (Jun. 2016) 44.5 (Oct. 2018) 45.2 (Oct. 2019) 38.3 (Jul. 2020)
Unemployment Rate (%) 12.5 (2016) 11.8 (2017) 8.9 (2018) 9.2 ( 2019) 7.7 (Q1 2020)
9.6 (Q2 2020)
Doing Business Rank 122 (2018) 128 (2018) 120 (2019) 114 (2020) ---
Global Competitiveness Report Rank
115(2016) 100(2017) 94 (2018) 93 (2019) ---
Why Egypt?
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
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
100 million
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
FTAs
• COMESA
• GAFTA
• EU Egypt
• QIZ
• 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
• Over 29million
• 60% under 30 • Competitive wages
Labor
Force
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
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 • 174600 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
Growing economy
Income
Tax
22.5%
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
Why Egypt?
Economic
Indicators
US
D b
illi
on
FDI in Egypt GDP Growth Rate
Source: Ministry of Planning Source: CBE
USD
mn
Top 10 Countries investing in Egypt , FY 2018/19
Sovereign Credit Rating
Last rated Egypt’s Sovereign Credit outlook
as “B2” (Stable) in May 2020
Last rated Egypt’s Sovereign Credit outlook
as “B+” (Stable) in July 2020
Revised Egypt’s Sovereign Credit outlook being “Positive” in
Nov. 2016 & “B”(Stable) in May 2018
Germany-Egypt Relation German Investments in Egypt
Total Germany FDI Inflows in Egypt
Trade Volume between Egypt and Germany
German investments in Egypt
• Germany came in the 10th rank of FDI stock in Egypt as
per June 30, 2019.
• As of 30/6/2019, there were 1253 companies in Egypt.
Out of the 1253 companies, there were 62 German
representative offices.
• 5 of the Egyptian companies that include German
shareholders are listed in the Egyptian stock market.
• The Total Investment and FDI stock reached USD 7.7
Billion and USD 3 Billion, respectively.
Source: GAFI Source: FDI Unit
Total Germany FDI Inflows in Egypt
Source: Central Bank of Egypt
US
D m
illi
on
• The total Germany FDI Inflows in Egypt reached about USD 2328.2 million between FY 2007/2008
till 1st 9 months FY 2019/2020
Trade Volume between Egypt and Germany
• Fuel and mineral oils
• Raw Materials (vegetables, Iron and steel, Cereals, fruits, Medicinal Plants & Cotton)
• Textiles and ready made garments
• Machines and Equipments.
• Electric equipment, devices and parts.
• Transportation Equipments
• Pharmaceutical products.
• Optical and cinema devices.
• Chemical products.
Top Exports Top Imports
Trade Development (2008/2009 –1st 9 months 2019/2020)
US
D m
illi
on
Source: CAPMAS
Vote of Confidence
Investment
Climate Reforms
23
Legal / Regulatory Reforms
The legislative reforms are pivotal in any economy reform process, in order to complement the macro-
economic ongoing reforms. Hence, full-fledged Legislative Reform plan is taking place, of which some
laws are amended and some were newly decreed such as :
- New Investment Law.
- Amendment of Sole Proprietorship Companies - law 4 for 2018
- Commercial Registry Law.
- Commercial Companies Law.
- Mortgage Law and Capital Markets Law.
- Bankruptcy law.
Reforms are underpinned by actions aimed at improving the
legislative framework of investment…
24
Facilitated Licensing Procedures
Highlight of the new Investment Law
Investment Protection Guarantees
Tax and Non-Tax Incentives
Out-of-courts Forums to Settle Investor- state Disputes.
Transparent Rules for Allocation of State- owned Land
Investment Incentives
General Incentives
All investment projects, except free zone projects, shall enjoy the following general incentives for a period of 5 years:
Exemption from Stamp Duty Tax and Notary Public Fees on:
- Registration of the constitutional documents of a company.
- Loan agreements.
- Pledge contracts.
Exemption from Land Registration Fees. Unified Flat Customs Duty Rate fixed of 2% on equipment and machines required for setup.
The new investment projects and the expansions for companies established according to the investment law, shall be allowed to a special incentive represented in a tax redemption according to the following criteria;
Special Incentives
23
Investment Incentives – Cont’
projects located in the areas that are much in need for development .(upper Egypt, Red Sea ,
golden triangle, Sinai, New valley & SC ZONE)
The 50% shall be calculated of the Investment cost of the project.
The 50% will be deducted from the taxable net profit Over 7 years.
Projects located in the rest of the country.
30% of the investment cost of the project. ,Shall granted for the following
activities: Labor-intensive projects. - SMEs
- Renewable energy projects.
- Tourism projects as specified by the SIC.
- Electricity projects specified by the SIC.
- Vehicle and related feeders industry projects.
- Wood, furniture, printing, packaging and chemical industries.
- Antibiotic, cancer treatment and cosmetics.
- Food and agricultural products as well as agricultural waste projects.
- Engineering, mineral, textile and leather projects.
Reduction shall not exceed 80% of the paid-up capital at the project start
date.
Incentive period
will not exceed 7
years from project
start date.
Establish a new company during the 3 years following the executive regulation
..
Not to use the assets of any existing
company.
Keeping regular and
accurate books.
Zone A - 50% of investment costs
Zone B - 30% of investment costs
24
Streamlining Investment Procedures
Egypt's New Investment Law
Invest
or
Se
rvic
e C
en
ter
Special ‘Investor State Center’ in GAFI to function as a one-stop- shop.
Establish/liquidate companies.
Ratify BOD, OGM and EGM
Issue all kind of licenses Capital increase/reduction.
Representatives from relevant authorities will exist in this center, and will have powers to issue approvals.
The Law provides for the automation of such services ASAP.
Acc
red
ita
tio
n O
ffic
es
Private sector service providers licensed by GAFI to assist investors to review and apply for project’s licenses and permits.
It will issue certificate that investor is financially and technically compliant.
GAFI will accept the certificate and issue required license within 60 days.
Non-reply will be considered an implied approval.
Go
lden
Lic
en
se
Strategic projects and PPP project in infrastructure, renewable energy, transportation or ports can be established and operated by virtue of a single license to be issued by the Cabinet.
Fa
cili
tati
ng
Ex
it P
roce
du
res
120 days from
receiving
liquidation request.
Concerned
authorities are
required to advise of
any liabilities which
are due.
If no such
notification has
been received then
the company is
discharged of any
liabilities
Investment Regimes
Investment Landscape The new Law grants the establishment of investment zones, private free zones, as well as technology and specialized economic zones by Cabinet decree.
Free Zones
No taxes and customs
No import / export regulations.
All equipment, machinery and
essential means of transport
necessary for business
operations are exempted from
all customs, import duties and
sales taxes.
Investment clusters in
different fields and sectors,
where investors are granted
services to serve the local
market , where GAFI shall
be responsible to obtain all
licenses , permits and
approvals on behalf of the
investors.
Investment Zones
Technological zones can be
created for specialized
activities in the fields of
industry, logistics, and
information and
communications.
Free customs.
Technology Zones
29
Special Economic
Zones
The Suez Canal Economic
Zone (SE Zone) is a world-
class free zone and trade
hub.
It is considered as zone A
in the investment law
which enjoys 50% tax
deduction .
Free Customs.
Mega Projects
Egypt Mega Projects
Covering a total area of 460 square kilometers along the banks of the Suez Canal
• International industrial hub
• Estimated US$ 12bn projected annual revenues
• The economic zone has 2 fully- integrated zones, 2 industrial zones and 6 ports
• Various Investment opportunities in Ain Sokhna Zone, East Port Said Integrated
Zone, West Qantara Zone
Suez Canal Economic Zone
• Inaugurated to create a new economic development hub close to Cairo
and diversify Egypt’s economic potential with the presence of new
places to live, work, and visit.
• The New Capital accommodates up to 7 million people built on 770
sqkm
• Estimated US$ 8bn worth of investments in the next 10 years
• 3.5 million job opportunities will be created
• Project components include, governmental and administrative district,
an international medical city, a sports city, a smart village, an
international conference center, a cultural district, education services,
finance & business areas
New Administrative Capital
Egypt Mega Projects Cont.
A fully sustainable development city on the coast of the Mediterranean Sea
set to become the second Alexandria of the region
• The project’s estimated initial investment value stands at US$ 10bn
• Proposed area: 50k acres
• 8k acres for phase 1
• Diverse investment opportunities in tourism, trading, manufacturing,
logistical services and more
New Alamain City
Egypt Mega Projects Cont.
The City is located on the highest mountain plateau between
Ain Sukhna and Zafarana
• More than $100M invested in last 2 years
• The resort includes two hotels, one of which is mountainous
and one that is coastal
• A 6-kilometer cable car
• Featuring a marina for yachts with 239 yachts marina
El Galala City
Egypt Mega Projects Cont.
Fully integrated societies to be built to support Egypt’s sustainable development
initiative. Seeking to create and support new urban communities established to
serve agriculture, food processing and the industrial sector.
• The first phase stretches over 500,000 acres
• Expanding Agricultural Land by 20%
• Areas covered Toshka, Farafra, Al Dakhla, Al Moghra and West of Minya
• US$ 150M Fund Raised
The 1.5 Million Feddan Project
Egypt Mega Projects Cont.
Mining area in Egypt accounting for 75% of Egypt’s mining minerals estimated at
almost a billion tons of phosphate rock. Egypt is ranked 7th worldwide in terms of
phosphate ore reserves.
• Proposed area: 9,200 km2
The Golden Triangle
Egypt Mega Projects Cont.
Constructed to be a specialized and integrated industrial city in the leather
manufacturing industry which is targeting to accommodate small, medium, and
large businesses.
• Superior infrastructure facility and state of the art services
• Targets to revolutionise leather exports from $200 thousand to $3 Billion
• Proposed area 1629 Feddan
Al Robbiki City for Leather
Egypt Mega Projects Cont.
Set to boost the furniture industry in Egypt, which is currently one of the fastest
growing sectors. Worth EGP 14 billion, with exports increasing by 51.6%
during the last 5 years to reach EGP 2.3 billion per year, Egypt’s furniture
sector is gaining a strong reputation across Europe and the Middle East.
Damietta’s furniture exports hit USD 350 million in 2015, and produces 36%
of Egypt’s furniture production with Egypt’s labor costs in industrial activities
being considerable lower than competing countries.
• Proposed area: 331 Feddan
Damietta Furniture City
Egypt Mega Projects Cont.
Set to become the world’s largest museum of Egyptian art and culture GEM sits
between the modern complexities of Cairo and the ancient wonder of the Pyramids
• Covering 500,000 sqm
• The new museum will display artefacts that have never been shown to the
public before
• Accommodates up to 15,000 daily visitors
• Various Investment opportunities, conference center, 3D cinema, retail outlets,
F&B outlets, GEM and the Pyramids restaurant, boutique hotel, promenade
The Grand Egyptian Museum
Egypt Mega Projects Cont.
Along with its internationally recognized research and conservation centre, the
museum have been established with the purpose of raising awareness and
understanding the Egyptian history and society via exhibitions, research, cultural
events, and publications. It’s also dedicated to preserve and protect the rich vibrant
heritage of the oldest civilisations in the world.
• Land Area: 33 Feddan
• 500,00 unique artefacts representing the evolution of the Egyptian Culture
starting from the prehistoric era, through the coptic and islamic periods, ahead to
the present
National Museum of Egyptian Civilization
Egypt Mega Projects Cont.
For more information please contact the Egyptian Commercial Office in Berlin Tel: 030 2064113 Email: [email protected] Or visit our website: www.ecrg.de
