Egypt has launched a new cash-based incentive to attract foreign investment and expand its industrial sector, the General Authority for Investment and Free Zones (GAFI) announced Sunday. The programme offers direct cash payments to industrial projects based on the size of foreign financing, provided it represents at least 50 per cent of the project's capital. Projects must also ensure that industrial products listed in the government-approved schedule account for at least half of annual revenue. Payments are made after taxes, giving investors a guaranteed return on qualifying expenditures. The move follows Law No. 160 of 2023, which amended Egypt's Investment Law to introduce the cash incentive without affecting other benefits, and Cabinet Resolution No. 77 of 2023, which sets eligibility criteria, disbursement mechanisms, and allows preliminary approvals valid for three years. GAFI CEO Hossam Heiba described the initiative as a "key tool to attract foreign direct investment, support industrial localisation, and boost the competitiveness of Egyptian products." A multi-agency committee including GAFI, the Industrial Development Authority (IDA), the Industrial Modernisation Centre (IMC), the Ministries of Finance and Industry, the Central Bank of Egypt (CBE), and the Tax Authority (ETA) will review applications and approve disbursements. The cash incentive guide is now available to investors, who can access it and submit applications via [email protected] Attribution: Amwal Al Ghad English
