Cabinet approves investment law

Egypt’s cabinet has approved a long-awaited unified investment law, part of a package of reforms the government is hurrying to put in place before the Egypt Economic Development Conference begins on March 13.

According to Reuters, Prime Minister Ibrahim Mehleb announced that the law was approved at Wednesday’s weekly cabinet meeting, and will be passed to President Abdel Fattah al-Sisi for final approval.

In an open letter to investors, published on the website for the conference, Sisi said the government is “determined” to remove “antiquated and unfair legal practices” that have made companies reluctant to do business in Egypt.

“We are making new efforts to tackle the regulatory and bureaucratic obstacles that stand in the way of private sector and foreign investors, as well as policies to ensure a level playing field for all investors where transparency and the rule of law prevail,” Sisi said.

According to the conference website, one of the key elements of the law is the establishment of an Investment Promotion Authority under the direct supervision of the prime minister, “designed to facilitate better coordination and follow up on all investment plans and procedures.”

The law will also establish a nationwide database of land plots available for investors, the website says.

Egypt’s investment framework has long been criticized for over-regulation and creating bureaucratic headaches for even simple transactions. It has also failed to keep pace with modern business and investment structures, putting a brake on start-ups and discouraging foreign investment in local companies. 

However, rights groups argue that recent legal changes give too much power to investors, granting numerous rights and privileges without corresponding responsibility.