"Irada" organizes consultation sessions on activating the incentives stipulated in Article 11 bis of the Investment Law granted to industrial projects

The Egyptian Initiative for Business Climate Reform "Irada", based on the Cabinet’s referral to it - held consultation sessions on activating the investment incentives stipulated in Article 11 bis of Investment Law No. 72 of 2017, which was added by Law No. 160 of 2023.

The dialogue was moderated by Dr. Heba Shaheen, Executive Director of the Irada Initiative, in the presence and participation of a group of private sector representatives and investors from various fields.

These sessions come out of the state’s interest in sharing the visions of the private sector as it is the addressee of the decision to be issued in implementation of the text of Article 11 bis of the Investment Law.

Article 11 bis of the Investment Law grants investment projects operating in the field of economic activities a cash investment incentive of no less than (35%) and no more than (55%) of the value of the tax paid on the tax return on the income generated from undertaking activity in the investment project.

 

To grant this incentive, it is required that the project or its expansions depend on its financing until the date of commencing the activity on foreign exchange from abroad at a rate of at least 50%.

Dr. Heba Shaheen confirmed that this decision aims to attract foreign investment, encourage local investment, and localize Egyptian industries, in addition to providing foreign currency.

During the sessions, the opinions and proposals of investors and representatives of the private sector were reviewed, and the criteria that the attendees considered a priority to adopt were discussed regarding the sectors and activities that can benefit from the investment incentives granted, to achieve the incentive’s goals of attracting investments and localizing industries.