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Monday, 14 August 2017

Industrial Permits Act executive regulations issued

The executive regulations of the Industrial Permits Act were issued on Sunday and published in the Official Gazette, making it the law of the land. At a press conference announcing the regs, Trade and Industry Minister Tarek Kabil reminded us why the long-awaited act — a key component of the government’s reform agenda — was important, Ahram Gate reports. Investors will now have to deal with one government agency only as opposed to 11 before the act.

The law will effectively cut the wait-time to receive approval for permits to seven or 30 days (depending on the licensing track) from a previous average of 600 days, Kabil added according to Al Masry Al Youm. As we have previously noted, the law would grant permits in one of two tracks: One for heavy industry that carries significant environmental, health, safety, or security risks, and another for smaller, lower-risk manufacturers. Licensing fees and wait times will vary by track, with the heavy industry / higher risk tracking being more expensive and demanding a 30-day approval cycle. Read a refresher on the key points of the law here.

No conflict with the Investment Act: There is no conflict between the Industrial Permits Act — which will be implemented in investment zones for the first time — and the Investment Act, Kabil said at the conference, though he did not elaborate, according to Ahram Gate. The Investment Act had done away with the “one stop shop” requirement for privatizing land for the Trade and Industry Ministry and the ICT Ministry.

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