Law No. 72 of 2017

Issuing the Investment Law

In the Name of the People

President of the Republic

The House of Representatives has decided the following law, and we hereby issue it:

(Article One)

The provisions of the attached law shall apply to investment matters in the Arab Republic of Egypt.
Its provisions shall govern local and foreign investment, regardless of its size. Investment shall be conducted in accordance with this Law under either the domestic investment system, the investment zones system, the technological zones system, or the free zones system.

(Article Two)

The provisions of the attached law shall not prejudice the tax exemptions, reliefs, and other guarantees and incentives established for existing companies and establishments at the time of its implementation. These companies and establishments shall retain those exemptions, reliefs, guarantees, and incentives until their respective periods expire, in accordance with the legislations and agreements from which they are derived. The provisions of the attached law shall not prejudice the provisions of Law No. 7 of 1991 concerning private state property, the Law on Economic Zones of a Special Nature issued by Law No. 83 of 2002, Law No. 14 of 2012 concerning integrated development in the Sinai Peninsula, and the Law facilitating procedures for granting licenses to industrial establishments issued by Law No. 15 of 2017. Furthermore, the provisions of the attached law shall not prejudice the substantive conditions stipulated for granting approvals, permits, and licenses as provided in any other laws.

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(Article Three)

The phrase ("Investment Law") shall be replaced by the phrase ("Law on Investment Guarantees and Incentives") wherever it appears in other laws and decisions.

(Article Four)

Private joint-stock companies are exempt from the provisions of Law No. 113 of 1958 concerning appointment to positions in joint-stock companies and public institutions for the purposes of this Law.
Furthermore, joint-stock companies shall not be subject to the provisions of Law No. 73 of 1973 concerning the determination of conditions and procedures for electing workers' representatives in the boards of directors of public sector units, joint-stock companies, and private institutions, and the company's bylaws shall determine the method of partnership among shareholders in their management.

(Article Five)

Disputes arising from the application of the provisions of this Law and its attached law are exempt from the provisions of Law No. 7 of 2000 establishing conciliation committees in certain disputes where ministries and public legal entities are parties.

(Article Six)

The penalties and requests currently under consideration before the two committees for resolving investment disputes and settling investment contract disputes shall be transferred to the committees stipulated in Articles 85 and 88 of the attached law upon their formation, without the need for any further procedure.

(Article Seven)

Employees subject to the ruling of the third paragraph of Article (20) of the Investment Law issued by Law No. 230 of 1989 shall continue to enjoy the conditions stipulated for them. These provisions shall not prejudice the profit distribution system applied to existing companies at the time of this Law's entry into force, if such system is more favorable to them.

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(Article Eight)

The Law on Investment Guarantees and Incentives issued by Law No. 8 of 1997 is hereby repealed.
Any provision conflicting with the provisions of this Law and its attached law is also repealed.

(Article Nine)

The Prime Minister shall issue the executive regulation for the attached law, upon the proposal of the competent Minister and after approval by the Council of Ministers, within ninety days from the date of implementation of this Law. Until this regulation is issued, the regulations and decisions in force at the time of its implementation shall continue to apply insofar as they do not conflict with its provisions.

(Article Ten)

This Law shall be published in the Official Gazette and shall take effect from the day following its publication.
This Law shall be stamped with the State seal and executed as one of its laws.
Issued at the Presidency of the Republic on 5 Ramadan 1438 AH (Corresponding to 31 May 2017 AD) Abdel Fattah El-Sisi

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Investment Law

Chapter One

General Provisions

(Section One)

Definitions

Article (1)

For the purposes of applying the provisions of this Law, the following words and expressions shall have the meanings indicated alongside each:

• Investment: The use of capital to establish, expand, develop, finance, own, or manage a project that contributes to achieving comprehensive and sustainable national development.
• Investor: Any natural or legal person, Egyptian or foreign, regardless of their private legal system, who invests in the Arab Republic of Egypt in accordance with the provisions of this Law.
• Investment Project: The conduct of one of the investment activities in the sectors of industry, agriculture, commerce, education, health, transport, tourism, housing, construction, sports, electricity, energy, natural resources, water, communications, and technology.
• Competent Minister: The minister responsible, in coordination with the concerned ministry or ministries and other sectors, according to the state's economic development plan. The executive regulation of this Law shall specify the conditions, scope, and controls for conducting these activities.
• Special Incentives: The incentives stipulated in Article (11) of this Law.
• Funds: All types of assets entering the investment project, regardless of their nature, possessing material value, whether monetary, in-kind, or intangible, and shall include in particular:
  1. Fixed and movable assets, as well as any other original or accessory real rights.
  2. Shares and company stakes, and non-governmental bonds.

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Article (2)

Investment in the Arab Republic of Egypt aims to raise the country's economic growth rates, increase domestic production rates, enhance employment opportunities, encourage exports, and increase competitiveness, thereby contributing to achieving comprehensive and sustainable development. All competent state authorities shall work to attract and stimulate local and foreign investments.

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Article (3)

Investment shall be governed by the following principles:

1. Equality of opportunity and investment, ensuring equal chances regardless of project size and location, without discrimination based on gender.
2. State support for startups and the growth of micro, small, and medium enterprises to empower youth and small investors.
3. Consideration of all social aspects, environmental protection, and public health.
4. Freedom of competition, prevention of monopolistic practices, and consumer protection.
5. Adherence to governance, transparency, sound management, and avoidance of conflicts of interest.
6. Working towards the stability and consistency of investment policies.
7. Expedient processing of investors' transactions and facilitating them to achieve their legitimate interests.
8. The state's right to preserve national security and public health.
   The aforementioned investment principles shall apply to both the investor and the state, each within their respective scope.

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Chapter Two

Investment Guarantees and Incentives

(Section One)

Investment Guarantees

Article (3)

All investments established in the Arab Republic of Egypt shall enjoy favorable and fair treatment.
The state shall guarantee foreign investors treatment no less favorable than that granted to national investors.
A decision by the Council of Ministers may be issued to grant preferential treatment to foreign investors.
Investors shall not be subject to any liquidation procedures or discriminatory decisions.

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Article (4)

Investment projects shall not be nationalized.
Expropriation of property for investment projects is only permitted for public interest, accompanied by fair compensation paid in advance without delay. Its value shall be equivalent to the fair economic value of the expropriated property on the day preceding the expropriation decision. Compensation shall be recoverable without restriction. Administrative seizure of such projects is prohibited. Seizure may only be imposed by a final judicial ruling. Preservation measures may only be taken by a judicial order or ruling. All of the above shall only occur under the circumstances stipulated by law. Seizure, confiscation, or freezing of property for investment projects is prohibited except by a judicial order or final ruling, specifically for the collection of tax debts and mandatory social insurance contributions due to the state, which may be collected through all types of attachment, without prejudice to what is agreed upon in contracts concluded by the state or public legal entities with the investor.

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Article (5)

This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all investment cases.
This Law concerns the guarantees and incentives of investment, and shall be applied in all a