Back to the complete issue
Monday, 6 June 2016

Khorshid looking to restore investment incentives for free zone companies?

Khorshid looking to restore investment incentives for free zone companies? Investment Minister Dalia Khorshid spoke about her ministry’s agenda to the House Economics Committee on Sunday, a presentation that was light on policy details. The minister noted she is setting up a committee with representatives from the legal affairs and justice ministries to begin drafting amendments to the investment act. About the only concrete policy proposal to emerge is a very welcome one: Khorshid suggested she’s in talks with the Finance Ministry to restore investment incentives for free zone companies scrapped under the new(ish) Unified Investment Act. That doesn’t go far enough: Egypt faces competition from MENA countries offering deep tax incentives and even capex rebates. We offer a one-stop-shop that doesn’t work. The ministry’s priority appears to be raising Egypt’s standing in the World Bank’s Doing Business rankings, which she hopes will jump to 60 by 2030, from a current 131. Khorshid said that passing legislation such as the Bankruptcy Act will help bring that about, AMAY reports.

Khorshid is said to have told a press conference following the meeting that the Ismail government will generate USD 5-10 bn from the IPO of state-owned companies, Al Mal reports. She did not comment on how she plans to get that done in light of the Public Enterprise Ministry’s opposition to the policy.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.