On the 29th of October, Abdelfattah El-Sisi, The President of Egypt, declared that the “Golden License” will be granted for investors who apply for it within the next 3 months to attract more investments and to allow investors to start their projects easily and as fast as possible.
What is the Golden License?
According to article 20 of the Investment Law No. 22 of 2017 and articles (42,43) of its Executive regulation, Golden License is a single approval to establish, operate and manage the investment project, including licenses to build and allocate real estate needed for it.
Project types/fields for which Golden License can be granted
1. Electricity and renewable energy
2. Petroleum and mineral resources
3. Transport projects
4. Industrial projects
5. Telecommunications and information technology
6. Housing, utilities and urban communities
8. Youth and Sports
11. Military production
According to article 42 of the Executive Regulations, as amended by Cabinet Decree 2300 of 2022, the requirements that must be satisfied by the applicant company, include the following:
1. The applicant shall take the form of an Egyptian joint stock or limited liability company incorporated following the provisions of the Investment Law or the Egyptian Companies Law no. 159 of 1981. However, the company should also be established following the enforcement of the Investment Law.
2. Company’s issued capital shall not be less than 20% (twenty per cent) of the investment costs of the project.
3. The applicant shall submit an initial feasibility study and a project execution timeline.
4. The applicant shall undertake to provide the relevant infrastructure for the project (including roads, water, sewage, electricity, waste treatment).
5. The applicant shall abide by requirements and conditions concerning the company’s purpose under the applicable laws and regulations.
As per article 20 of the Investment Law and Cabinet Decree no. 56 of 2022, the project must meet two or more of the “National or Strategic Project” Eligibility Requirements mentioned below:
1. The project contributes to increasing exports by exporting at least 50% of its production annually, within a maximum period of 3 (three) years from starting the activity.
2. The project is financed by foreign currency funding transferred via an Egyptian Bank.
3. The project aims to reduce imports, localize the industry, and increase the use of local components in production, including the use of local raw materials and production to represent at least 50%.
4. The project is established in one of the areas that are in the most need of development.
5. The project contributes to the transfer and localization of modern technology in Egypt and supports innovation, development, and scientific research.
6. The project aims to secure strategic goods for the country and limit their importation.
7. The project is labour-intensive, i.e., 500 (five hundred) Egyptian employees and salaries should equal 30% (thirty per cent) of the operating expenses.
8. The project contributes to reducing environmental impact, reducing emissions, and improving the climate.