​​We will witness a surge in investment inflows following President El-Sisi's directive to replace multiple government fees imposed on companies with a unified additional tax – a move that will facilitate and enhance the investment climate and promote transparency.

Mr. Hossam Heiba, CEO of the General Authority for Investment and Free Zones – GAFI CEO, participated in the joint meeting of the Egyptian-Kuwaiti Cooperation Council, in the presence of H.E. Eng. Mohamed Shimi, Minister of Public Business Sector; H.E. Mr. Mohamed Gebran, Minister of Labor; Mr. Ahmed El-Sheikh, Executive Chairman of the Egyptian Exchange; Ambassador Ihab Fahmy, Assistant Foreign Minister for Arab Affairs; Mr. Mohammad Jassem Al-Sager, Head of the Kuwaiti side of the Council; and Dr. Mamdouh El-Araby, representing Eng. Mahmoud El-Araby, Head of the Egyptian side of the Council. The meeting also witnessed the participation of 150 Egyptian and Kuwaiti business leaders.

During the meeting, Mr. Heiba announced that the Egyptian government is currently working on implementing the directive of President Abdel Fattah El-Sisi to cancel the multiple fees imposed by various government bodies on companies and replace them with a unified additional tax calculated on net profits. The new scheme is expected to be launched within a few months and is anticipated to significantly enhance the business environment and boost investment inflows into Egypt.

Mr. Heiba stated that the Egyptian economy is now reaping the benefits of fiscal, monetary, and investment reforms. Egypt has achieved its highest-ever net foreign direct investment inflows, amounting to USD 46.1 billion during the fiscal year 2023/2024. This figure is attributed to the country's infrastructure boom, exchange rate stability, availability of foreign currency, streamlined tax procedures, digitalization of investment processes, and the facilitation of licensing required to establish and operate projects.

GAFI CEO affirmed that the government continues to implement a sector-specific and geographically targeted strategy to attract investment projects capable of exporting goods and services abroad. This aligns with Egypt's Vision 2030, which aims to increase the private sector's share of total investments to 70% by 2030 and raise the value of Egyptian exports to USD 145 billion.

Mr. Heiba emphasized the government's objective to double the volume of Kuwaiti investments in Egypt by highlighting the success stories of Kuwaiti companies operating in the country. These companies have continued to grow and generate strong returns, benefiting from the sustained growth of the Egyptian economy in recent years, despite the challenges posed by the COVID-19 pandemic, regional instability, and global economic fluctuations.

Net inflows of Kuwaiti direct investment into Egypt during the post-pandemic period (from FY 2021/2022 to FY 2023/2024) amounted to USD 6.2 billion. Kuwait currently ranks as the fifth largest investor in Egypt, with investments spanning approximately 1,500 companies, mainly in the financial, industrial, real estate, tourism, and services sectors.

Mr. Heiba invited the Kuwaiti business community to explore investment opportunities listed on Egypt's Investment Map, which offers a range of frameworks tailored to different project objectives—such as free zones, investment and technology zones, domestic investment companies, and the Suez Canal Economic Zone. He also encouraged them to apply for the “Golden License" for projects aligned with Egypt's national strategic objectives, with a particular focus on export-oriented sectors that contribute to achieving Egypt's development goals and benefit from the trade agreements signed by the Egyptian government with around 70 countries.
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