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Thursday, 20 October 2016

Features of the New Investment Act revealed by Al Mal

The New Investment Law will grant tax exemptions on projects whose capital investments exceed EGP 150 mn and whose workforce exceeds 250 employees, an unnamed source tells Al Mal. special breaks will be given to projects in certain regions including Upper Egypt and Sinai, and for specific projects deemed essential to regional development. A key feature of the legislation as well appears to be enforcing time schedules on approving permits and licenses on the government. This was done undoubtedly to address some of the issues of the failed one-stop shop policy which will remain in place under the law. Government employees and agencies will be held accountable if procedures are delayed, said the source.

The law will also supersede the guidelines of other government bodies, a move meant to cut regulatory entanglements and red tape. It also provides certain protections to investors from prosecution and land seizures. As we still do not have the copy of the law at hand, we cannot accurately dissect it or confirm the source’s statement. But we can say that these promises in some form or the other were made before. The draft was reportedly sent to business associations for their opinions.

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