Law No. 160 of 2023 amended the Investment Law by adding Article 11 bis, which grants industrial investment projects a cash incentive without prejudice to other statutory incentives.
Cabinet Resolution No. 77 of 2023 established the necessary
requirements, controls, and criteria for applying the incentive, covering
eligibility conditions, incentive rates, and disbursement/monitoring
mechanisms.
The resolution allows for obtaining a preliminary approval
valid for three years, providing industrial projects with an added guarantee of
receiving the incentive even if modifications occur during the implementation
period.
Heiba explained that this incentive is a crucial mechanism
for attracting Foreign Direct Investment (FDI). It offers the investor a direct
cash incentive, disbursed after tax payment, with rates dependent on the volume
of foreign funding brought into the project.
Key eligibility requirements include the foreign funding
component as it must be no less than 50% of the project's capital. The
industrial products listed in the annex to the Cabinet Resolution must
represent no less than 50% of the project’s annual turnover.
GAFI issued Resolution No. 675 of 2025 establishing the Cash
Investment Incentive Granting Committee for Industrial Projects.
The Committee is chaired by a GAFI representative and
includes members from the Industrial Development Authority, the Industrial Modernization
Center, the Ministries of Finance and Industry, the Central Bank of Egypt, and
the Egyptian Tax Authority. Its functions include reviewing and examining
submitted applications, issuing eligibility certificates, granting annual
approvals for incentive disbursement, and issuing preliminary approvals
according to Cabinet Resolution No. 77 of 2023.
To ensure transparency, disclosure, and ease of procedures, GAFI has launched the Guideline for the Cash Investment Incentive specifically for industrial projects.