Largest Global Companies Investing in Egypt Present their Success Stories at MIIC’s Press Conference
17 September 2018

More than 25 of the largest companies investing in Egypt from Europe, Asia and America announced success stories of their investments in Egypt, the volume of investment they injected during the fiscal year 2017-2018 and their future plans at a press conference organized by MIIC on 17 September 2018. The Minister of Investment and International Cooperation Dr. Sahar Nasr announced investment recoveries during the fiscal year 2017-2018 and launched the corporate social responsibility competition, in presence of the Minister of Environment Dr. Yasmin Fouad, GAFI’s CEO Mr. Mohsen Adel and GAFI’s Vice-CEO Counselor Mohammed Abdul wahab and Ms. Ola Al-Qubrosi as well as GAFI’s board members.

The Minister of Investment mentioned that the fiscal year 2017-2018 witnessed a significant increase in the number of incorporated companies as a result of Egypt’s legislative and executive economic reforms. She referred to the issuance of the Investment Law, the Bankruptcy Law and the Financial Leasing and Factoring Law as well as the introduction of amendments to the Capital Market and Companies Laws. This is, in addition, several ministerial decisions that contributed to fostering the investment climate and the expansion of the Investor Service Center (ISC), given that the number of companies incorporated increased by 29.1% to reach 20 thousand companies compared to the fiscal year 2016-2017. The capital of the companies formed during the last fiscal year increased by 64.4% to EGP 49 billion versus EGP 29.8 billion in the 2016-2017 financial year. MIIC launched Egypt’s investment map that presents more than 1000 investment opportunities nationwide. The Minister stated that the investment map website received 825 investment requests and 40 thousand visits from 147 states all over the world, noting that companies set up during the previous year provided approximately 60 thousand job opportunities.

As stated by Dr. Nasr, Greater Cairo had the largest share of incorporation processes, accounting for 65% of the new companies’ issued capital. Upper Egypt was ranked second and obtained 22.6% of the new companies’ issued capital, added Dr. Nasr, shedding light on the great incentives granted by the new Investment Law to investments in Upper Egypt, which contributed to increasing capitals in Upper Egypt.

The number of companies expanded during the fiscal year 2017-2018 increased by 61.6% compared to the fiscal year 2016-2017, given that the number of companies expanded during the fiscal year 2017-2018 amounted to 3478 companies.

The Minister emphasized that the ISC provided its services to SMEs, major companies and the billion-dollar companies in the sectors of industry, construction, tourism, finance, agriculture, and communications and information technology.
Further, the Minister referred to the “Incorporate your Company by yourself” service via MIIC’s official website to allow investors set up their companies via the internet and to the Hotline no. 16035 to communicate with investors and respond to their inquiries.

Dr. Nasr also stated that developments were made in public free zones of Suez, Ismailia, Alexandria and the Media Free Zone, besides current developments in the public free zones of Nasr City, Alexandria, Port Said, Qeft and Shebin El-Koum. 7 free public zones are being established in Nuweiba, Minia, the Craftsmen area in Giza, New Ismailia, New Aswan, Kafr El-Sheikh and Gamasa in Dakahliya.

Establishing a free zone in Nuweiba came within the framework of an integrated plan for Sinai development by injecting investments in it and Minia would be specialized in the textile industry, indicated the Minister. She pointed out that the last free zone established in Egypt was in 2005 which prompted MIIC to establish further free zones nationwide, noting that the government was keen on injecting investments in areas that need economic growth, including Sinai and Upper Egypt.

The Minister announced that 8 branches of the ISC are being established in Qena, Minia, Fayoum, Ismailia, Sharm El-Sheikh, El-Wadi El-Gedid, Luxor, and Hurghada; 12 investment zones are also being established, including 3 in Qalyubia, Meet Ghamr in Dakahliya and Ard El-Saf in Giza as well as Damietta, Sharqiya, City Center in Cairo, Suez, Ismailia, North Sinai, and Aswan.

On the other hand, Dr. Nasr announced the launch of a competition for selecting leading companies in the area of social responsibility to develop a list including the best investment projects that carry out activities related to social responsibility, given that companies would fill out the application form on GAFI's website WWW.GAFI.GOV.EG\CSR
The Minister stated that it was the first time that the Investment Law provides for the investor's social responsibility by allocating no more than 10% of investors' annual profits to be used in establishing a system for social development outside their investment projects.

Applicant companies will be classified according to the volume of their capital and 10 winning companies will be selected according to criteria set according to international standards and in line with the best international practices for corporate social responsibility, the Egyptian business climate and requirements of the Egyptian society's sustainable development clarified Dr. Nasr.

According to the Minister, winning companies would be granted a group of procedural incentives, including a ceremony to be covered by media for distributing awards and appreciation certificates, names and links of winning companies will be published on MIIC's website, and a contact person at ISC will be provided to fulfill the needs of winning companies and seek to solve their problems rapidly and effectively. This is in addition to sending all MIIC's and GAFI's printed materials via mail to such companies periodically, and promoting printed materials of winning companies at a conference in which GAFI will be participating abroad, besides the tax incentives provided for in laws governing the activity of such companies.     




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