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Sunday, 13 March 2022

Gov’t has incentives for green economy, AI and other priority sectors

A first look at new incentives to spur investment in emerging sectors: The Madbouly government is introducing incentives to spur investments in the green and AI sectors, according to a statement. Ministers approved the incentives last week, after they were put forward by General Authority of Investment and Freezones (GAFI) CEO Mohamed Abdel Wahab. While details are so far scant, the incentives include:

#1- Tax incentives: The government will grant tax breaks to projects for the production, storage and export of green hydrogen and green ammonia, as well as for projects to manufacture alternatives to single-use plastics.

#2- Non-tax incentives for AI, green, and manufacturing projects. GAFI will start implementing non-tax incentives laid out in the Investment Act, especially for projects in the AI, green, and manufacturing industries.

#3- Prioritizing strategic sectors: Projects in green hydrogen, green ammonia, EV manufacturing and charging, plastics alternatives, and waste management — all considered priorities for our development strategy — could be fast-tracked through the approvals process, after Cabinet approved a separate prime ministerial decision, the statement read.

#4- Faster approval process for investment proposals: Authorities must now make a decision on any approvals, licenses or permits necessary for investment projects and inform applicants of the outcome within 20 working days of receiving a request. GAFI will follow up on applications with any authorities who don’t meet the new deadline.

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