The incorporation of companies in the Arab Republic of Egypt is governed by Investment Law No. 72 of 2017 and its executive regulations, which grant Gulf investors national treatment across most activities. A Saudi investor may hold the entire capital of a joint stock or limited liability company without an Egyptian partner, subject to the restricted activities set out in the negative list.
The legislative framework
The law establishes the principle of equal treatment between Egyptian and foreign investors, and permits the latter to own, manage and dispose of projects. Specific activities tied to national security or subject to special conditions are excluded.
Incorporation applications are submitted to the General Authority for Investment and Free Zones through the Investor Services Centre, which completes procedures before the relevant bodies within the statutory periods.
Investment projects may not be nationalised or expropriated except for public benefit, against fair compensation paid in advance.
Restricted activities
The negative list includes a number of activities requiring prior approval or a national participation threshold, most notably:
- 01Import activities for trading purposes, which require registration in the importers' register.
- 02Activities operating in designated areas of a security or border nature.
- 03Certain transport and logistics activities subject to sector-specific licensing.
The practical takeaway
Before selecting a company's legal form, review the intended activity against the negative list and the sector licensing schedule. This early check saves considerable time and cost, and avoids amending the articles of association after registration.