Egypt’s New Investment Laws 2026

Over the past few years, Egypt has introduced a broad wave of legislative and regulatory reforms aimed at improving the investment climate, attracting local and foreign capital, supporting industry, increasing exports, and expanding the role of the private sector in the economy.

These reforms are no longer limited to general statements about encouraging investment. They now form an integrated framework of laws, incentives, and procedures covering industrial investment, free zones, the Suez Canal Economic Zone, green hydrogen, tax facilitation, the Golden License, and competitive neutrality between the public and private sectors.

The significance of these laws lies in their attempt to address several long-standing challenges facing investors: lengthy licensing procedures, multiple authorities, high start-up costs, unclear incentives, difficulty in settling tax positions, unequal competition with certain state-owned entities, and the need for direct financial incentives to support industrial projects during the establishment and operation phases.

This article provides a reference overview of the most important laws and reforms adopted by the Egyptian state to encourage investment, with a focus on the figures, percentages, and practical advantages relevant to industrial investors, industrial real estate developers, foreign companies, small and medium-sized enterprises, energy companies, and exporters.

First: Investment Law No. 72 of 2017 as the Foundation of Egypt’s Investment Framework

Investment Law No. 72 of 2017 represents the foundation of Egypt’s modern investment framework. Although the law was issued several years ago, its importance has increased following later amendments that introduced new incentives, expanded the scope of the Golden License, and created clearer financial benefits for industrial and strategic projects.

The law is based on several important principles, including fair treatment of investors, non-discrimination, protection of projects from arbitrary decisions, prohibition of nationalization, prohibition of expropriation except for public benefit and against fair compensation, and equal treatment of foreign and national investors, while guaranteeing the transfer of compensation and funds in accordance with the law.

For investors, these guarantees are as important as financial incentives. Industrial and foreign companies are not looking only for land and price; they are looking for a legal framework that protects capital and makes long-term investment decisions executable.

Second: General Incentives under the Investment Law

The Investment Law grants a set of general incentives to projects subject to its provisions. Among the most important are reduced unified customs duties in certain cases on machinery, equipment, and devices required to establish the project, in addition to benefits related to notarization, registration, and contract fees, depending on the nature of the project and the applicable legal conditions.

These incentives reduce establishment costs, especially for industrial projects that require production lines, machinery, equipment, and operating inputs. They do not operate in isolation; rather, they complement special and additional incentives, as well as the incentives available in economic zones and free zones.

Third: Special Incentives: 50% and 30% Deductions from Investment Costs

One of the most important tools under the Investment Law is the special incentive system. These incentives are granted as deductions from net taxable profits, depending on the geographic location and the type of activity.

They are divided into two main sectors:

Sector A: This includes areas most in need of development and certain priority investment zones. Projects in this sector receive a deduction equal to 50% of investment costs.

Sector B: This includes other areas, according to specified investment activities. Projects in this sector may receive a deduction equal to 30% of investment costs for certain activities, including labor-intensive projects, small and medium-sized enterprises, renewable energy, export-oriented industries, and certain specified industrial and service activities.

The total investment incentive may not exceed 80% of the paid-up capital as of the date the activity begins, and the deduction period may not exceed seven years from the start of operations.

These figures are highly important in feasibility studies. An industrial project does not calculate only the price of land or factory space; it also calculates the long-term tax impact, especially where the project requires substantial capital investment in the first years of operation.

Fourth: Law No. 160 of 2023 Amending the Investment Law

Law No. 160 of 2023 is one of the most important recent amendments to the Investment Law. It introduced a new cash incentive for industrial projects and certain expansions, ranging from 35% to 55% of the income tax paid on income generated from the activity.

The importance of this incentive is that it is not merely a deferred accounting deduction. It is a cash incentive that the company may recover in accordance with the applicable rules. Under the amendment, the Ministry of Finance is required to pay the incentive within 45 days from the end of the period prescribed for submitting the tax return. If payment is delayed, a late payment amount becomes due, calculated according to the credit and discount rate announced by the Central Bank.

One of the conditions for obtaining this incentive is that at least 50% of the project’s or expansion’s assets must be financed from abroad in foreign currency until the activity begins. The project must also commence operations within six years from the date the relevant incentive article comes into force.

This amendment sends a direct message to local and foreign industrial investors: the state is not offering only theoretical exemptions. It may provide cash support to the project once the activity is realized and the tax is paid, thereby encouraging foreign currency inflows and real industrial financing.

Fifth: The Golden License or Single Approval

The Golden License is one of the most important procedural tools adopted by the state to accelerate strategic and national projects. It is a comprehensive approval issued by a Cabinet decision for the establishment, operation, and management of a project. It includes building permits and the allocation of the real estate required for the project, and may also include the application of certain incentives provided under the Investment Law.

The main advantage of the Golden License is that it reduces the number of approvals and authorities involved, giving the investor a clearer implementation route. This is particularly important for major industrial projects, energy projects, infrastructure, ports, logistics, information technology, and public-private partnership projects.

The state has moved toward expanding the use of the Golden License and not limiting it only to a narrow category of projects, making it an important tool for attracting investments that require rapid execution.

Sixth: Additional Incentives for Strategic Projects

In addition to general and special incentives, the Investment Law allows additional incentives to be granted by Cabinet decision. These may include the state bearing part of the cost of connecting utilities, part of the technical training cost for workers, refunding 50% of the value of land allocated to industrial projects if production begins within two years from the handover date, allocating land free of charge for certain strategic activities, exempting projects from land usufruct fees for up to ten years, or having the state contribute to infrastructure and utility costs up to 50% of the cost. The state may also bear up to 50% of utility consumption bills for a period not exceeding ten years.

These incentives make the law a flexible tool rather than a rigid framework. They allow the state to direct support toward projects with the highest impact: labor-intensive projects, export-oriented projects, technology projects, industrial localization projects, and infrastructure projects.

Seventh: Law No. 159 of 2023 and the Cancellation of Preferential Exemptions for State Entities

One of the most important reforms affecting the investment climate is Law No. 159 of 2023, which cancelled tax and fee exemptions previously granted to state entities in investment and economic activities.

The importance of this law does not come from being a direct incentive to the investor, but from strengthening the principle of competitive neutrality. Private investors, whether local or foreign, need a market in which all participants compete under rules closer to equality, without state-owned entities enjoying tax or customs exemptions that create unequal competition.

The Ministry of Finance has confirmed that the implementation of this law helped establish competitive neutrality and eliminate tax discrimination. It also stated that direct application of the law generated initial revenues of approximately EGP 67.4 billion from state-owned companies and entities for 2024. This point is significant for investors because it reflects a shift from verbal support for the private sector to changing the rules of competition themselves.

Eighth: Law No. 2 of 2024 on Incentives for Green Hydrogen Projects

Law No. 2 of 2024 on incentives for green hydrogen production projects and their derivatives is one of Egypt’s most important new sector-specific laws. It aims to attract major investments in green hydrogen, green ammonia, green methanol, water desalination, renewable energy plants connected to these projects, and the transport, storage, and distribution of green hydrogen.

The law grants a cash incentive known as the “Green Hydrogen Incentive”, which must not be less than 33% and must not exceed 55% of the tax paid on income generated from the project or its expansions. The Ministry of Finance must pay this incentive within 45 days from the end of the deadline for submitting the tax return. This incentive is not considered taxable income.

The law also exempts equipment, machinery, devices, raw materials, production inputs, and transport vehicles required for the activity from value-added tax, excluding passenger cars. Exports of green hydrogen projects and their derivatives are subject to VAT at a zero rate.

Other important advantages include the possibility of exemption from real estate tax on properties actually used in the project, exemption from stamp duty and notarization and registration fees on company incorporation contracts, credit facilities and mortgage agreements, and exemption from customs duties on imports required for the project.

The law also provides important operational advantages, including obtaining single approval, the right to import without registration in the importers’ register, the right to export without registration in the exporters’ register, and the right to employ foreign workers up to 30% of the total workforce during the first ten years.

It also grants a 30% reduction in port usage and maritime service fees, a 25% reduction in the usufruct fee for industrial land, and a 20% reduction in the usufruct fee for storage land at ports, while granting a grace period for payment of the usufruct fee until the start of commercial operation.

This law positions Egypt competitively in the clean energy market, especially given the Suez Canal location and Egypt’s proximity to Europe and global markets.

Ninth: The Suez Canal Economic Zone and the Special Economic Zones Law

The Suez Canal Economic Zone operates under Law No. 83 of 2002 on special economic zones and its amendments, while also benefiting from incentives under the Investment Law. The zone is one of Egypt’s most important industrial and logistics investment platforms because it combines industrial land, ports, logistics zones, and a global location on the Suez Canal.

Projects in the zone benefit from tax and customs incentives, including a deduction from net taxable profits equal to 50% of investment costs, provided that the incentive does not exceed 80% of paid-up capital and is used for a period not exceeding seven years from the date the activity begins.

According to the Suez Canal Economic Zone, no customs duties are imposed on imports into the zone. For products exported to the Egyptian domestic market, customs duties are imposed only on the foreign components, not on the full value of the finished product. Goods manufactured inside the zone may also obtain an Egyptian certificate of origin, opening the door to benefiting from Egypt’s free trade agreements.

These advantages make the zone suitable for heavy industries, automotive manufacturing, energy, petrochemicals, green hydrogen, engineering industries, logistics, and export-oriented projects.

Tenth: Tax Facilitation Laws Nos. 5, 6, and 7 of 2025

In 2025, Egypt launched an important tax facilitation package linked to three main laws.

Law No. 5 of 2025 concerns the settlement of the status of certain taxpayers and obligated persons. It aims to encourage taxpayers to join the formal system and settle previous positions. According to statements by the Egyptian Tax Authority, it includes disregarding tax dues prior to the effective date of the law without penalties or financial sanctions, allowing taxpayers to make a fresh start.

Law No. 6 of 2025 concerns tax incentives and facilitation for projects whose annual turnover does not exceed EGP 20 million. This law is highly important for small and medium-sized enterprises, entrepreneurs, and freelancers. It establishes a simplified and permanent tax system that is not tied to a temporary deadline, with rates starting from 0.4% for projects with annual turnover below EGP 500,000 and reaching 1.5% for enterprises with annual turnover approaching EGP 20 million.

Other advantages include the first tax audit taking place after five years from registration, VAT returns being submitted four times per year instead of 12 times in certain cases, and exemptions from some fees and taxes such as stamp duty, resource development fees, and notarization and registration fees within the scope determined by the law.

Law No. 7 of 2025 amended certain provisions of the Unified Tax Procedures Law. One of its most important provisions is setting a maximum limit for late payment charges or additional tax not exceeding 100% of the original tax. This is an important amendment because it reduces the excessive accumulation of tax liabilities and makes tax disputes more realistically capable of settlement.

These laws are not relevant only to small companies. They affect the overall investment climate because they expand the formal economy, reduce compliance costs, and create a more stable relationship between taxpayers and the Tax Authority.

Eleventh: Reducing Documents and Accelerating Investment Services

One of the important practical reforms announced by the General Authority for Investment is reducing the number of documents required for certain services related to seriousness verification committees and commencement of activity by up to 62%.

This type of reform does not always appear in the headline of a law, but it is highly impactful in practice. It reduces investors’ time, lowers procedural costs, and reduces administrative friction.

The state’s direction toward electronic platforms, digital Golden License services, investor service centers, electronic invoicing, and VAT refund systems also represents a gradual shift toward a more measurable and trackable business environment.

What Do These Laws Mean for Industrial Investors?

These laws indicate that Egypt is trying to move beyond a model based only on cheap land or labor, toward a more competitive legislative model based on financial incentives, faster licensing, export support, encouragement of foreign currency financing, industrial localization, and linking investment with development.

For large industrial investors, the most important elements are the Investment Law and its amendments, the Golden License, the 35% to 55% cash incentive, the Suez Canal Economic Zone, and green hydrogen incentives.

For small and medium-sized investors, the most important element is Law No. 6 of 2025 and the simplified tax system.

For foreign investors, Law No. 159 of 2023 and the principle of competitive neutrality send an important signal about improving market rules.

The Role of NileEstate.com as a Reference for Investors

In light of these legislative reforms, choosing an industrial or investment location has become more complex and more important. The investor is not choosing only land or a factory; the investor is choosing a legal and operating framework: a traditional industrial zone, a free zone, an economic zone, a strategic project eligible for the Golden License, or a small project subject to a simplified tax regime.

This is where NileEstate.com plays a role as a platform helping investors and industrial companies understand available opportunities in light of these laws, linking the property to the activity, the location to the incentive, the space to the license, and the price to feasibility.

Successful investment does not begin with a property advertisement only. It begins with understanding the legal, tax, and regulatory framework within which the project will operate.

Conclusion

The new laws adopted by the Egyptian state to encourage investment represent a significant shift in the business environment, especially in industry, export, energy, services, and small and medium-sized enterprises.

The key feature of this framework is that it does not rely on one law only, but on an integrated package: the Investment Law, its amendments, the Golden License, cash incentives, the competitive neutrality law, the Green Hydrogen Law, the Special Economic Zones Law, and the tax facilitation package.

The real value of these laws appears when they are used correctly within an integrated feasibility study. A tax incentive alone does not create a successful project. But when it is combined with the right location, a clear activity, structured financing, capable management, and a targeted market, it can turn Egypt into a strong platform for manufacturing, export, and long-term investment.

Documented Sources Used

• Investment Law No. 72 of 2017, as published by GAFI, establishes principles including fair treatment of investors, equality between foreign and national investors, prohibition of nationalization, and prohibition of expropriation except for public benefit and against fair transferable compensation.
• The Investment Law and its amendments provide special incentives: a 50% deduction from investment costs for Sector A and 30% for Sector B, capped at 80% of paid-up capital and for a period not exceeding seven years.
• Law No. 160 of 2023 amended the Investment Law by adding a cash incentive for industrial projects ranging from 35% to 55% of tax paid, payable within 45 days, subject to conditions including at least 50% foreign-currency financing of assets from abroad and commencement of operations within six years.
• GAFI defines the Golden License as a comprehensive approval for establishing, operating, and managing a project, including building permits and allocation of the required real estate, issued by Cabinet decision.
• The Supreme Council for Investment approved expanding the issuance of the Golden License and considering not limiting it only to companies established for strategic or national projects.
• Law No. 159 of 2023 abolished tax and fee exemptions granted to state entities in investment and economic activities; UNCTAD described it as a step toward competitive neutrality and tax fairness between the public and private sectors.
• The Ministry of Finance announced that implementing Law No. 159 of 2023 contributed approximately EGP 67.4 billion in initial tax revenues for 2024 from state-owned companies and entities.
• The Suez Canal Economic Zone confirms that it operates under Special Economic Zones Law No. 83 of 2002, as amended by Law No. 27 of 2015, and that the Investment Law grants it additional incentives as part of Sector A.
• The Suez Canal Economic Zone presents a 50% deduction from investment costs from net taxable profits, capped at 80% of paid-up capital and for a period not exceeding seven years, in addition to advantages related to free trade agreements.
• Law No. 2 of 2024 on green hydrogen grants a cash incentive between 33% and 55% of tax paid, VAT exemptions on equipment, raw materials, and production inputs, a zero VAT rate on exports, single approval, port fee reductions, and usufruct fee reductions.
• The Egyptian Tax Authority explained that Law No. 6 of 2025 provides a permanent simplified tax system for projects with annual turnover not exceeding EGP 20 million, with rates starting from 0.4% and reaching 1.5%.