General Authority for Investment

GAFI

Arab Republic of Egypt

Egypt at a glance
2015/20162016/20172017/20182018/20192019/2020

Real GDP growth rate

4.3%

4.2%

5.3%

5.6%

3.6%

Inflation rate (CPI urban)

10.9% (Jan. 2016)

28.1% (Jan. 2017)17.1% (Jan. 2018)12.7% (Jan. 2019)5.4% (Dec.. 2020)

Population

89 Mn (Jul 2015)

91 Mn (Jul 2016)

97.6Mn (Sep. 2018)99.6 Mn (Nov. 2019)

101.4 Mn (Dec. 2020)

Net FDI (USD bn)

6.9

7.9

7.7

8.2

7.5

International Reserves (USD bn)

17.5 (Jun. 2015)31.3 (Jun. 2016)44.5 (Oct. 2018)45.2 (Oct. 2019)40.1 (Dec. 2020)

Unemployment Rate (%)

12.5 (2016)11.8 (2017)

8.9 (2018)

9.2 ( 2019)

7.7 (Q1 2020)
9.6 (Q2 2020)
7.5 (Q3 2020)

Doing Business Rank

122 (2018)

128 (2018)

120 (2019)114 (2020)---

Global Competitiveness
Report Rank

115(2016)

100(2017)

94 (2018)

93 (2019)---

Why Egypt?

Why Egypt?
• Central location & proximity to
the global market• Access to a large consumer
base in Egypt and beyond• Large pool of trained andskilled labor• Revamped infrastructure base
• Abundance in natural
resources• Competitive tax rates• Growing economy

Location• Gate to Africa &the Middle East
• Center of theWorld

Why Egypt?
 Central location & proximity to
the global market
 Access to a large consumer
base in Egypt and beyond Large pool of trained andskilled labor Revamped infrastructure base
 Abundance in natural
resources
 Competitive tax rates
 Growing economy

Population

101.4million

Why Egypt?
 Central location & proximity to
the global market
 Access to a large consumer
base in Egypt and beyond Large pool of trained andskilled labor Revamped infrastructure base
 Abundance in naturalresources
 Competitive tax rates
 Growing economyFTAs• COMESA• GAFTA• EU Egypt• QIZ• Aghadir• EFTA• Egypt Mercosur• Egypt Turkey FTA

Why Egypt?
 Central location & proximity tothe global market
 Access to a large consumer
base in Egypt and beyond Large pool of trained andskilled labor Revamped infrastructure base
 Abundance in naturalresources
 Competitive tax rates
 Growing economy

LaborForce• Over 29million• 60% under 30• Competitive wages

Why Egypt?
 Central location & proximity to
the global market
 Access to a large consumer
base in Egypt and beyond Large pool of trained andskilled labor Revamped infrastructure base
 Abundance in naturalresources
 Competitive tax rates
 Growing economy

Transportation• 20 Airports• 191 Railway stations• 15 Seaports & Suez Canal• Subway network

Why Egypt?
 Central location & proximity to
the global market
 Access to a large consumer
base in Egypt and beyond Large pool of trained andskilled labor Revamped infrastructure base
 Abundance in naturalresources
 Competitive tax rates
 Growing economy• 174600 km Road Network• Communication Networks

EconomicIndicators

FDI in Egypt

7.3

7.7

7.9

4.3%

6.4

4.4%

5.6%

6.9

5.3%

8.2

USD billion

GDP Growth Rate

4.2%

2.2%

2.1%

2.2%

4.1

3.8

4.0

3.6%

55%
Non Oil

1.8%40%Expansion
2011/122010/112011/122012/13

Source: Ministry of Planning

2013/142014/15

2015/162016/172017/18

2018/192019/20

Source: CBE

2012/132013/142014/15

2015/162016/172017/18

2018/192019/20

Japanese Investment in Egypt• Japan came in the 30th rank of FDI
stock in Egypt as per June 30, 2020.
• As of 30/6/2020, there were 107
companies in Egypt. Out of the 107
companies, there were 33
Japanese representative offices• Total Japanese injected Capitalfrom inception until June 2020
was about USD 900 Million

Top 10 Countries investing in Egypt , FY 2019/20
USD mn

6000

5000

4000
UK; 4779.8
3000

2000

UAE; 1617.5
Belgium; 1526.5
USA; 1479.2
Qatar; 679.4

1000

France; 349
The Neithlands; 1241.7

0Italy; 596.3-1000
Source: CBE

Saudi Arabia; 448.4

Kuwait; 347.5

Sovereign Credit Rating
Last rated Egypt’s Sovereign Credit outlook
as “B2” (Stable) in May 2020

Last rated Egypt’s Sovereign Credit outlook
as “B+” (Stable) in July 2020

Revised Egypt’s Sovereign Credit outlook being “Positive” inNov. 2016 & “B”(Stable) in May 2018

Investment
Climate Reforms

INVESTMENT CLIMATE REFORMS
The new investment law is a cornerstone in the ambitious reform program of the Government of Egypt. The law complements measures taken by thegovernment to stabilize the macroeconomic environment, consolidating fiscal deficit, rectifying market distortions, incentivizing economic growth, andameliorating socioeconomic conditions. The investment law, which is a crucial stepping stone to gear up domestic and foreign investments, is part of aregulatory overhaul of the business environment in Egypt that includes insolvency act, companies law, capital market laws and regulations and single-personcompany. The law also paves the way for major enhancement in the business climate through streamlining the procedures, cutting red tapes, providing
investment guarantees and incentives, and fostering governance and accountability.

GuaranteesIncentives
Non- Tax Incentives

Investor ServiceCenter

Investment Map

Free Zones

Conflict Resolution

Reduce Red Tape

Promote Transparency
Governance

Investment
High Supreme Court

Land Allocation
And Real Estate

Improving Economic

Extensive Reforms

Sustainability

New Investment Law

Sole Partnership & Commercial Companies Law

Capital Markets Law

Commercial Registry Law

Insolvency, Debt Restructuring & Bankruptcy Law

Investment LandscapeThe new Law grants the establishment of investment zones, private free zones, as well as technology andspecialized economic zones by Cabinet decree.

Free Zones

Investment Zones

 No taxes and customs
 No import / export regulations.
 All equipment, machinery andessential means of transport
necessary for business
operations are exempted fromall customs, import duties andsales taxes.

 Investment clusters indifferent fields and sectors,
where investors are granted
services to serve the local
market , where GAFI shallbe responsible to obtain all
licenses , permits andapprovals on behalf of theinvestors.

Technology Zones

Special EconomicZones

 Technological zones can becreated for specialized
activities in the fields ofindustry, logistics, andinformation andcommunications.

 The Suez Canal Economic
Zone (SE Zone) is a worldclass free zone and tradehub.

 Free customs.

 It is considered as zone A
in the investment law
which enjoys 50% tax
deduction .

 Free Customs.

17

The way forward

Way forwardVote of Confidence

GAFI FRAMEWORK
Providing and developing various investment
services through the one-stop-shop.

Promoting Egypt’s potential sectors and investment
opportunities to attract Investments.

Regulatory role under the provisions of investments
and corporate laws.

Establishing, managing & developing Free Zones
to help increase Egyptian Exports.

Settling investors disputes and problems.
Institutionally supporting Small & Medium Enterprises
through Bedaya center for Entrepreneurship and
SME’s Development.
Establishing Investment Zones to accelerate theexpansion of competitive strategic clusters.

THANK YOU