Economist: Sisi’s directives to improve the investment climate increase the flow of foreign investments

 Written By: Aya abd-Alkhalek ■

Dr. Ashraf Ghorab, economic expert and Vice President of the Arab Union for Social Development at the Arab Labor System of the League of Arab States for Economic Development Affairs, stressed that President Sisi’s directives to continue improving the climate and addressing structural challenges and reducing procedural and non-tax financial burdens, in addition to developing the foreign trade system by facilitating procedures, reducing costs and customs clearance time, localizing and protecting local industry, in addition to developing the non-tax financial burdens file and unifying the parties dealing with and collecting fees with the investor, all serve to stimulate the Egyptian investment climate and increase its attractiveness for the flow of investments from foreign investors and the private sector.

Gharab explained that the state has made many efforts and provided many incentives to stimulate the investment climate, including a package of tax concessions and the preparation of similar tax concessions and concessions in real estate taxes and the customs system, in addition to providing industrial lands for investors to establish industrial projects on, in addition to the new program to support exports that guarantees the return of dues within 90 days and its great incentives, in addition to expanding the granting of the golden license, in addition to the Ministry of Industry studying the legalization of the status of any factory established on non-industrial lands and producing before October 2023, in order to maximize the national industry and raise the percentage of the local component in the Egyptian product and increase the volume of Egyptian exports.

Gharab pointed out that among the investment incentives provided by the Egyptian state are economic legislations that protect the investor and provide him with a safe and stable economic environment by issuing many economic laws, in addition to the strong infrastructure of roads, axes, ports, railways and airports established by the state, in addition to the supervision of only one entity over factories and not closing any factory except by a decision from the Prime Minister, in addition to the financing initiatives put forward by the Central Bank to provide the necessary financing at low interest, in addition to the serious move to hold exhibitions abroad to promote Egyptian products and expand in opening new markets for Egyptian exports, in order to make Egypt a center for supply chains at the international and regional levels, especially since Egypt’s geographical location is very distinguished and at the gateway to Africa, and it has many available investment opportunities such as the Suez Canal Economic Zone and others.

Gharab continued, saying that the positive reports of international rating agencies on the Egyptian economy, in addition to the stability and flexibility of the exchange rate, in addition to the state of political and economic stability in Egypt and the government’s move towards increasing growth rates and controlling inflation rates and its gradual decline, in addition to Egypt’s technological progress and moving forward in the digital transformation to facilitate the investor and citizen in conducting all services electronically, all of this contributes to providing a safe and suitable environment for work and investment, which contributes to attracting more foreign investments because any investor wants to be reassured about his money and review the agencies’ reports.