Business Environment

Business Environment

In the heart of the EMEA region, Egypt's business landscape entices abundant investment opportunities. Offering a gateway for delivering premium services and groundbreaking technological innovation, Egypt presents investors with a distinctive blend of advantages, including:


A robust economy, a high amount of consumer spending, and a large labor force have helped sustain Egypt's strong fundamentals. That, in turn, has helped support a dynamic business atmosphere. As per International Monetary Fund (IMF) forecasts, GDP is expected to thrive from USD 402.8bn in 2022 to USD 584.9bn in 2026.

The development of Egypt’s ICT sector is supported by joint efforts to diversify and develop a knowledge-based economy. Indeed, Oxford Business Group noted that ICT’s contribution to GDP steadily rose from $5.1bn in FY 2017/18 to $8bn in FY 2020/21. ICT is the largest contributor to GDP growth and is forecasted to be 4.5% as per the World Bank.

Ease of Doing Business

In 2020, the Ease of Doing Business Index for Egypt was a 60.05 score. Ease of Doing Business Index of Egypt increased from a 54.7 score in 2016 to a 60.05 score in 2020 growing at an average annual rate of 2.37%.

The government launched a website at the end of 2022 where potential investors can apply for a “Golden License”. The Golden License grants investors approval to buy or rent land and operate projects without having to secure prior approval from multiple government bodies. There are many areas and activities granted comprehensive approval based on the guidebook of this license. The communications and Information Technology sector include these areas:

Design/manufacturing of solar cells and renewable energy conversion systems
Design/manufacturing of semiconductors, silicon wafers, and ICs
Manufacturing/production of LED chips
Manufacturing of LCD Open Cell

More areas and details can be found in theGolden License Guidebook.

Start of Protecting Intellectual Property

ITIDA’s Property Rights (IPR) Office acts as a central point, enabler, and mentor. Our IP experts tackle and study the problems and issues faced by the private sector with respect to intellectual property. We develop the aggregated info with meticulous detail into policies, curricula, initiatives, awareness campaigns, and even legislative amendments. We educate local judges, prosecutors, criminal investigators, and cops on IPR-related topics.

The Agency cooperates with the European Union and the Arab Academy for Science, Technology & Maritime Transport to design IPR Master Studies for law enforcement personnel. Global Intellectual Property Center, U.S. Chamber International IP Index, 5th Ed, February 2017, recognizes the indispensable role of IP, in facilitating innovative and creative activity on a transformative scale. GIPC voiced Egypt’s key areas of strength as a WTO member with a basic national IP framework in place. The Center also highlighted the relative freedom of patent CIIs and support from government agencies. US IP Index emphasized the challenging enforcement environment and lack of border measures.





Today, investors and business leaders choose Egypt for its pro-business government policies and regulations. With the country being a regional digital hub, the government focuses on promoting and developing:

1 Digital Transformation

The ICT 2030 strategycontributes to achieving the objectives of Egypt's Vision 2030, through building Digital Egypt. These objectives entail developing the ICT infrastructure; fostering digital inclusion; achieving the transition to a knowledge-based economy; building capacities and encouraging innovation; fighting corruption; ensuring cybersecurity; and promoting Egypt's position at the regional and international levels.

2 Digital Skills and Jobs

Egypt offers an abundance of multilingual talent at a competitive cost. The local skilled workforce, low costs and government support, and large domestic market are key advantages of the ICT sector in the country. ITIDA launched multiple programs to develop learners’ tech/pro capacities and qualify them for the IT market. For example: Learn to Go Offshoring, Future Work is Digital(FwD 2.0) , German Training Initiative in Upper Egypt cities, Summer Training and Internships, Next Technology Leaders (NTL), Fiber Optics Training, etc.

3 Digital Innovation

For the IT industry to thrive, the Government of Egypt seeks to promote R&D, innovation, and entrepreneurship. The Technology Innovation and Entrepreneurship Center(TIEC) aims to drive innovation and entrepreneurship in the local industry and ensure both people and businesses benefit from technology.

GoE always strives to create an environment conducive to thriving investments. Income and corporate taxes as well custom duties are being reduced dramatically. The Government passed several laws paving the road for investors in the ICT industry. Egypt maintains significant stability and economic flexibility. The country is growing stronger and becoming more resilient after economic reforms began in earnest in 2016. Implemented regulatory reforms include:

New investment law in 2017 (more details on GAFI website),
New companies’ law,
Bankruptcy law in 2018,
New custom, cybersecurity, digital signature, and data protection law in 2020.
How a Supportive Government is Fostering Growth

In recent years, Egypt's proactive government has assumed a pivotal role in cultivating an increasingly favorable environment for offshoring. This transformative journey has been marked by the strategic implementation of business-friendly regulations and forward-looking initiatives, all strategically designed to allure foreign investment and elevate the overall ease of conducting business within the country. These ambitious endeavors have been complemented by a substantial influx of capital into pivotal industries such as technology, tourism, and infrastructure. In effect, these investments have not only facilitated economic diversification but have also unlocked novel prospects for global enterprises seeking to broaden their operational horizons.




Egypt's cost-effective business landscape provides an attractive setting for foreign enterprises seeking to extend or initiate their global operations. The combination of high-quality infrastructure at affordable rates and relatively modest living expenses serves as a compelling draw for international businesses. These resultant cost advantages not only bolster profitability but also empower companies to channel resources into expansion initiatives, thereby securing a distinct competitive advantage in the worldwide market.


Alongside these savings, Egypt offers investors a reduced import custom of just 2% on equipment, tools and machinery needed to establish a business, and charges just 5% VAT on imported equipment and machinery necessary for the establishment of the business and use in production (whether goods or services).

Additionally, for certain high-potential industries, the Egyptian government avails attractive incentives for foreign investors, positively impacting the bottom line:

Incentives for investors in electronics design and development:

30% to 50% Corporate Tax reduction; up to 80% of total paid capital
Customs and tax exemption on machines, tools, and equipment in Tech Parks
Up to 50% subsidy on cost for Design Offices and Manufacturing in Tech Parks
5% to 10% export overhead rebate, based local-value 50% freight cost subsidy to Africa
15% local product cost advantage for governmental purchases

Further incentives for businesses established at Knowledge City Innovation Center:

Capacity building funding for new employees
Three-year exemption from rental fees, internet costs and utilities. After three years, companies will enjoy highly subsidized rental fees for a further two years
Financing the transportation cost of new/existing employees to Knowledge City
Free use of the Center’s laboratories
Incubation of startups at no cost
Infrastructure(The Pillar of Resilience and Growth)

In recent times, the Egyptian government has undertaken significant investments to improve the country's infrastructure capabilities. This dedicated endeavor has been particularly focused on elevating transportation, communication, and energy networks. Noteworthy achievements encompass the establishment of new highways, the enhancement of ports and airports, and the skillful expansion of existing infrastructure to effectively cater to the rising requirements of the landscape.


The New Capital City is poised to amplify and diversify the country's economic prospects, offering fresh residential, commercial, and leisure spaces. To magnetize individuals to this urban center, a series of key catalyst developments are set to emerge at its heart. These include a new governmental administrative hub, a vibrant cultural district, and an array of dynamic urban communities.
The New Alamien City’s distinguished location will make it Egypt's gateway to Africa, as it continues to witness an unprecedented rate of projects and has attracted a wide range of international companies to invest in the city. The city includes international commercial centers, residential and tourist towers.
Smart Village represents the ultimate interactive community. A work community redefined, with a wide array of avenues to build and develop relationships. With a focus to maximize a professional yet friendly environment, the Business Park offers reliable infrastructure and modern buildings for a wide range of businesses.
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