Egypt’s cabinet has passed regulations for a new investment law that could bring in much needed business from international companies, with the likes of L’Oréal and Beiersdorf said to be interested in trading in the country.
The law has now gone to the State Council, Egypt’s administrative court, which is thought to undertake a final legal review before it comes into force. It is hoped the new law will lure back foreign investors that are said to have abandoned trade in the country due to the 2011 uprising.
Following the announcement of a three-year $12 billion loan agreement with the International Monetary Fund last year, the new law offers numerous incentives for foreign investors such as tax breaks, government support towards the cost of connecting utilities to new projects, as well as discount on trade in under developed areas.
Speaking to Reuters following the news, Investment Minister Sahar Nasr named L’Oréal and Beiersdorf-owned Nivea as interested investors, stating, “You look at the months since the president has ratified the law and there are companies that have been asking their legal advisers about it; from the United Arab Emirates, Saudi Arabia, the United Kingdom, France, and Germany.”
Egypt reported direct foreign investment of around $8.7 billion from 2016-17, which the government aims to boost to over $10 billion this year.