Tax Reform: As part of its ongoing efforts to make Egypt the most attractive investment destination in the MENA region, the government has clarified the tax code and cut corporate tax rates from 42% to 20% and personal tax rates from 32% to 20%. Other new administrative changes include the new random audit system and having the Tax Authority personally oversee the largest corporate taxpayers.
Customs Reform: In order to improve Egypt’s standing as a global manufacturing hub, the government reduced the weighted average tariff rate from 14% to 6.9%, streamlined tariff bands, reduced the number of tariff categories from 27 to 6 and also reduced the number of articles covered under the Customs Act by more than half.

Reforms instituted in this sector over the past several years have positively impacted the economy, placing increased emphasis on the role of the Central Bank of Egypt and consolidating the banking sector through a variety of methods ranging from mergers to privatizations. The Central Bank of Egypt has created a sounder and more efficient banking system by hiking capital reserve regulations, encouraging mergers and acquisitions, developing its regulatory and supervisory apparatus and addressing the legacy of non-performing loans.
Thesectorsawfurthergrowthofnon-bankfinancialproductsincludingmortgagefinance,financial leasing, fixed-income products, factoring and insurance. A new single regulatory body will soon have responsibility for regulation and oversight of all non-banking financial activities.
The Capital Market Authority (CMA) remained strong with both the oldest and one of the newest exchanges in MENA.
Egyptian Stock Exchange (EGX) has been among the best-performing exchanges in the world since 2003, closing up more than 100% in both ’03 and ’04. The EGX, the oldest stock market in the MENA region, became the first Arab member of the World Federation of Exchanges in 2005, in recognition of Egypt’s regulatory soundness and sophistication. The CMA introduced the Nilex, the region’s first small-cap stock exchange, in 2007. SMEs are the backbone of Egypt’s economy (estimated at 70-80% of GDP), but until 2007 had little access to the financing needed for growth. The Nilex offers SMEs access to financing and investors a clear picture of companies they wish to invest in as well as a clear exit strategy — now as simple as selling shares.

The regulatory and institutional frameworks governing investment in Egypt have seen significant overhauls in the past several years. The government has taken bold steps to slash red tape and make Egypt — one of the world’s oldest economies — also one of the easiest in which to do business. Some examples of reforms and protections based on the concepts of property rights protections, equality and ease of doing business include:
Fast-track dispute resolution services for all investors;
100% foreign ownership of companies;
Profit and dividend repatriation, dispute resolution and settlement mechanisms implemented;
Comprehensive corporate governance principles, anti-money laundering, anti-trust and consumer protection laws;
New commercial court system now rolling out nationwide to settle business disputes
Incorporation time slashed from an average of several months to only 72 hours;
Minimum capital requirements for LLC reduced to EGP 200; and
One-Stop Shops introduced at multiple locations throughout the country.