Egypt’s President Abdel-Fattah El-Sisi recently unveiled tax breaks designed to spur investment in crucial industries.
Industries like green energy, electric cars, and pharmaceuticals will benefit. This move comes amid a high inflation rate of 36.5% for July 2023.
Companies can also trade in stable currencies like euros and dollars.
In 2021, Egypt made some products VAT-free. These include certain medical supplies and local farm goods.
In June 2023, the government ended some tax breaks for state-owned firms. This change aims to attract more private investors.
Seven industries have been chosen for future tax breaks. These include solar power, green hydrogen, and petrochemicals.
Companies must commit to local production to gain these benefits.
Global inflation is a challenge, but Egypt is making strides. Investment from countries like the UK, India, and the UAE is rising.
These nations invested billions in Egypt last year.
Egypt has big plans beyond attracting private money. Projects like high-speed rail are already in progress.
A French firm secured a large contract for rail upgrades recently.
Egypt’s population is young and educated. The government plans to use this asset for growth. Firms in key sectors will find a skilled workforce here.
The new tax plan should be in full effect by 2024. It aims to attract both local and foreign investment.
The goal is a strong economy, more jobs, and a path to industrial growth.
Egypt Background
Egypt has a rich history of trade and commerce. In ancient times, it was a center for agriculture and industry.
Over the years, it became known for textiles, especially cotton. In the 20th century, the Suez Canal boosted its strategic importance.
Oil and gas exploration added new revenue streams later on.
In the 1990s, Egypt started opening up to foreign investment. But the 2011 revolution led to economic instability.
This deterred investors for some time. Since then, the country has been working to regain trust.
Recent efforts focus on sustainable growth and job creation. The government has initiated various plans to modernize its sectors.
Tech startups are also getting more attention. With these new tax breaks, Egypt hopes to reclaim its role as a key player in global markets.