Efforts for Improving the Climate of Investment
Egypt adopted a package of policies and executive programs thus aiming at improving the climate of investment, easing its procedures and achieving justice of distribution of private investment in the governorates which need more investments with the purpose of creating job opportunities and reaping the fruits of Egypt's economic development. Among major executive steps and procedures in the FY 2006/2007:
1- Easing and facilitating procedures before investors:
* On the level of domestic investment:
A number of procedures were taken in order to eliminate many regulatory and bureaucratic complications which hindered investment in Egypt:
- Automatic linkage of insurances office to the investment services complex in the Social Insurance Authority and minimizing the period of registration to 2 days as of companies establishment.
- Automatic linkage of customs office to the investment services complex in the Customs Authority with the purpose of ending all works concerning the registration of investor in the register of dealers with Customs Authority.
- Enabling companies to pay all tax payments via any tax outlet.
- Issuing the Arab Investor Card and starting work with it as of December 2006 in coordination with the Ministry of Interior to facilitate dealing with the governmental bodies.
2- Developing and encouraging investment in governorates:
Egypt aimed at realizing justice with regards to distribution of private investments in different governorates all over Egypt as follows:
- Approving the establishment of the Upper Egypt Development Company on 21/2/2007 with the aim of pumping more investments in Upper Egypt and providing more job opportunities for youths there.
- As the level of infrastructure plays a key role in luring investments, Ministry of Investment paid attention to finance many projects for the development of infrastructure on top of which the construction of Upper Egypt-Red Sea road. This road aims basically at establishing a new regional axis linking the Red Sea to Upper Egypt thus facilitating the movement of goods and individuals as well as the mutual tourism movement.
3- Promoting investment in Egypt :
Egypt adopted many steps in order to get the investors acquainted with the advantages of investment in Egypt and the available investment opportunities in an attempt to lure more foreign direct investment. Among the steps taken in the FY 2006/2007:
A number of procedures were taken in order to eliminate many regulatory and bureaucratic complications which hindered investment in Egypt:
- Automatic linkage of insurances office to the investment services complex in the Social Insurance Authority and minimizing the period of registration to 2 days as of companies establishment.
- Automatic linkage of customs office to the investment services complex in the Customs Authority with the purpose of ending all works concerning the registration of investor in the register of dealers with Customs Authority.
- Enabling companies to pay all tax payments via any tax outlet.
- Issuing the Arab Investor Card and starting work with it as of December 2006 in coordination with the Ministry of Interior to facilitate dealing with the governmental bodies.
2- Developing and encouraging investment in governorates:
Egypt aimed at realizing justice with regards to distribution of private investments in different governorates all over Egypt as follows:
- Approving the establishment of the Upper Egypt Development Company on 21/2/2007 with the aim of pumping more investments in Upper Egypt and providing more job opportunities for youths there.
- As the level of infrastructure plays a key role in luring investments, Ministry of Investment paid attention to finance many projects for the development of infrastructure on top of which the construction of Upper Egypt-Red Sea road. This road aims basically at establishing a new regional axis linking the Red Sea to Upper Egypt thus facilitating the movement of goods and individuals as well as the mutual tourism movement.
3- Promoting investment in Egypt :
Egypt adopted many steps in order to get the investors acquainted with the advantages of investment in Egypt and the available investment opportunities in an attempt to lure more foreign direct investment. Among the steps taken in the FY 2006/2007:
A- Participation in organizing international and regional conferences including:
* Euromoney Conference which was inaugurated by Egypt's Prime Minister and attended by a large number of domestic and foreign experts and senior officials as well as representatives of world companies working in Egypt. More than 1200 figures from 66 countries participated in the conference.
* The conference of "Egypt and Global Capital Markets- Opportunities for Growth" held by the Ministry of Investment in cooperation with the Morgan Stanly Institute. The conference was attended by chairmen of banks, insurance companies and holding companies, financial leasing companies; in addition to more than 150 investors in capital markets and representatives of Egyptian and global investment institutions.
* Public Private Partnership (PPP) in the Middle East and North Africa Conference.
* Cairo Investment Forum held by the Ministry of Investment with participation of Arab countries. The forum aimed at informing the Arab investors of the reforms implemented in the field of investment as well as the achievements realized on the ground.
B- Minister of Investment paid many visits to the world countries with the purpose of informing the entire world of the developments witnessed by Egypt Economy and the investment climate in Egypt. The major visits in the FY 2006/2007:
* The visit paid by the Investment Minister to Poland during which he held a number of meetings where he reviewed the key developments of the Egyptian economy. The Minister also discussed with foreign officials the investment opportunities available in Egypt.
* Participation of the Minister of Investment in the annual meetings of the International Monetary Fund (IMF) and World Bank (WB) in Singapore.
* The visit of the Investment Minister to Germany for the inauguration of the 2nd Broader MENA Finance Conference held in Munich. The conference was attended by the German Federal Minister of Economics and Technology and 150 senior businessmen and bankers in Germany and MENA.
4- Minister of Investment inaugurated the conference:
Organized by the American Chamber of Commerce in Cairo, in cooperation with the Bank of New York to promote the Egyptian economy and to define the investment opportunities of the different economic sectors..
Minister of Investment participated in the third meeting of the economic growth committee, held in New York, which was discussing the economic development indicators in the world as well as the priorities to push economic growth rates to contribute to reducing levels of poverty and raise income levels..
Launch an awareness campaign to foster the culture of investment in the Egyptian society and to encourage small investors to participate in the establishment of investment projects.
Participation of the Ministry of Investment and the General Authority for Investment and Free Zones (GAFI) in several promotional campaigns in many states including Kuwait, UAE, Saudi Arabia ,the United States and Canada
Updating and developing the website of the Ministry of Investment to include all data and information about the Ministry of Investment and other related actors and bodies.
5 - Solving investors' problems:
During the Fiscal Year 2006/2007, the General Authority for Investment and Free Zones (GAFI) had worked to overcome obstacles and solving problems that hamper the work of investors. Dispute resolution ministerial committees have been able to consider 147 problems and solved 118 of them, which account for 80% of the total disputes examined by these committees with regard to investment..
6- International cooperation to support and stimulate investment:
Minister of Investment participated in the third meeting of the economic growth committee, held in New York, which was discussing the economic development indicators in the world as well as the priorities to push economic growth rates to contribute to reducing levels of poverty and raise income levels..
Launch an awareness campaign to foster the culture of investment in the Egyptian society and to encourage small investors to participate in the establishment of investment projects.
Participation of the Ministry of Investment and the General Authority for Investment and Free Zones (GAFI) in several promotional campaigns in many states including Kuwait, UAE, Saudi Arabia ,the United States and Canada
Updating and developing the website of the Ministry of Investment to include all data and information about the Ministry of Investment and other related actors and bodies.
5 - Solving investors' problems:
During the Fiscal Year 2006/2007, the General Authority for Investment and Free Zones (GAFI) had worked to overcome obstacles and solving problems that hamper the work of investors. Dispute resolution ministerial committees have been able to consider 147 problems and solved 118 of them, which account for 80% of the total disputes examined by these committees with regard to investment..
6- International cooperation to support and stimulate investment:
Coordinating with various agencies and international bodies to support and stimulate investment and attract more foreign capital and identification the country's efforts to create an appropriate climate for investment. The fiscal year 2006/2007 witnessed the activation of international cooperation efforts through the following actions:
Discussing the report on the practices of business activities in 2006 with the World Bank representatives to clarify all the measures adopted by Egypt on improving the investment climate.
Discussing the report on the practices of business activities in 2006 with the World Bank representatives to clarify all the measures adopted by Egypt on improving the investment climate.
Coordinating with the World Bank and International Finance Corporation and getting them acquainted with investment data on an ongoing basis.
Coordinating with the United Nations Conference on Trade and Development (UNCTAD) and getting them acquainted with periodic data on FDI, to be included in the annual World Investment Report.
7- The development of Special Economic zones northwest Gulf of Suez:
It is "a specific area aiming to attract foreign and national investment through the establishment of industrial projects throughout providing a package of investment incentives to both foreign as well as national investor". The experience of special economic zones in Egypt comes in the context of directing the state towards the advancement of national economy and creates the investment climate in the country looking for increasing the volume of exports and providing job opportunities and face the problem of unemployment. The choice was made on the Northwest Gulf of Suez to establish a special economic zone to be the first economic zone established under the new law. This zone will represent a model of economic zones in the future. This area is located near the port of Ain Sokhna, a distance of about 45 kilometers from the city of Suez near the southern entrance to the Suez Canal. It has been working in the financial year 2006/2007 on developing the work in this region through the establishment of a Major Development Company for this region on 3/10/2006 with a capital of 75 million Egyptian pounds and solving problems related to the facilities in this area by providing water and implementing more than 90% of the protection work of liquidity and establishing of a building to serve the investors, which had been implemented by the grant from the Chinese Government. The Egyptian Prime Minister has laid the cornerstone for a building on 11/2/2007.