Egypt is pushing for progressive legislations in support of its investors. The country’s Board of Directors for General Authority for Investment and Free Zones (GAFI) has approved new a regulation permitting foreign investors to obtain residency for 5 consecutive years, with the option to renew for similar periods throughout their projects.
Here Is What You Need To Know
- GAFI is Egypt’s chief governmental authority involved in regulating and attracting investment in the country.
- According to GAFI CEO Mohamed Abdel Wahab, the new controls will activate the Investment Law, which permits investors to secure residency depending on the nature of their business, the number of workers employed, the size of their capital, and the location of their work activity.
Read also: You Can Now Acquire Egyptian Citizenship Simply By Investing Under Egypt ’s New Law
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- The board’s approval comes as part of the authority’s efforts to provide Egypt’s workforce with more job opportunities and secure foreign investment in sectors targeted by the state for economic development.
- Earlier this year, a new law was passed scrapping the imprisonment of investors over fears that imposing jail terms on businessmen affects investment in the country.
“I will never allow the imprisonment of businessmen involved in financial violations,” parliamentary speaker Ali Adel-Aal was quoted as saying.
- In December, 2019, Egypt’s cabinet has also approved five requirements to grant citizenship to foreigners by investment in the country’s economy, per Law №90 of 2019, a law recently approved by the Parliament.
Under the new law, there are five main conditions of eligibility for Egypt ‘s citizenship by investment, each independent of the other. The conditions include:
- Either purchasing state-owned or public juridical person-owned property valued at $500,000 or more; or
- Establishing or partnering in an investment project with $500,000 or more.
- Other cases include depositing $750,000 through direct wire transfer from abroad into a special Central Bank of Egypt (CBE) account and to be retrieved in Egyptian pounds after five years without interest;
- Or depositing $1m through direct wire transfer from abroad in a special CBE account, and to be retrieved in EGP after three years without interest.
- The fifth case is to deposit $250,000 non-refundable, through a direct wire transfer to the CBE.
The cabinet approved the establishment of a special unit to look into citizenship by investment applications.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer