Back to the complete issue
Sunday, 30 October 2016

Gov’t reportedly included provisions on price caps in new Investment Law

Did the Ismail government really try to sneak in provisions on caps in the new Investment Law? The Egyptian Businessmen’s Association (EBA) is raising a stink about a number of the law’s features including provisions which appear to give the government leeway to enforce price caps when necessary, Al Borsa reports. According to EBA head Ali Eissa, an article of the law guarantees the freedom of companies to set prices with the exception of goods that are deemed critical to national security. The EBA is requesting that the Investment Ministry clarify this point. Other features that the EBA is objecting include restrictions on foreign labor unless absolutely necessary. Eissa goes on to state that the law doesn’t go far enough and must include an overhaul of existing legislation that hinders the investment climate.

Price caps have the backing of the Egyptian Union of Investors Associations (EUIA), which is channeling the ghost of Abdel Nasser this morning. Free markets do not mean the government shouldn’t step in to regulate if it helps the consumer, the EUIA reportedly said in a report on the matter, according to Al Mal. Wait, huh? Sadly, we were unable to reach the EUIA to explain this oxymoron for us. The Federation of Egyptian Industries (FEI) and the Federation of Egyptian Chambers of Commerce have both condemned any move by the government to set caps on profit margins.

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; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.