Egypt has been advocating the creation of Free Zones since the early 1970s in an attempt to increase exports, attract foreign investment, introduce advanced technology and create more job opportunities.

Free Zones are located within national territory but are considered offshore areas. Investors operating inside the Free Zones export more than 50% of their total production. Among the Free Zone incentives and guarantees are a lifetime exemption from all taxes and customs; exemption from all import/export regulations; the option to sell a certain percentage of production domestically if custom duties are paid; and limited exemptions from labor provisions.

To facilitate import/export procedures, Free Zones are usually located adjacent to sea ports and airports.

 There are two different kinds of Free Zones; public and private.