2021 was a significant year for Egyptian investments, recovering from the impacts of Covid-19 on the economy. Although many countries continued to suffer from the adverse economic effects, Egypt has seen multiple great investments.
Egypt managed to maintain a 3.3% positive GDP growth. The European Investment Bank (EIB) investments in Egypt in 2021 is around 1 billion euros; the Egyptian American Enterprise Fund (EAEF) has also committed $20 million to Ezdehar management fund II, an independent fund manager for fast-growing mid-size companies. The investment in Egyptian startups has also seen a significant rise in 2021. Egyptian startups collectively raised $194 million during the first half of the year, led by international investors like IFC, Maersk Growth, Raed Ventures, RMBV, Endeavor, Beco Capital, and other global investors.
New Laws - Egyptian Government Facilitating Investments
Several laws are currently being changed to facilitate the further investments and encourage more investors to trade and invest in Egypt. The Egyptian parliament is discussing nowadays waiving the stamp taxes on resident investors trading in or holding Egyptian shares/securities.
The Egyptian senate is also discussing multiple new tax reforms to help boost Egypt investments and address taxation problems impacting the flow of capital in the Egyptian market. The recent reforms may include amendments in the capital gain taxes, and there have been discussions on postponing its implementation to 2023. With the constant changes in the taxation laws and landscape in Egypt, it is advisable to leverage the knowledge of local tax experts who are updated with the new regulations.
Optimistic future and opportunities for growth
With the Egyptian government's commitment to achieving pre-pandemic macroeconomic indices, the government has implemented a robust plan to achieve a 5.7 % GDP growth in 2022. The plan includes increasing public investment allocations by 46%, estimated to reach EGP 933 billion.
The Egyptian government also provides multiple facilities and opportunities for investments in different locations around the country through 13 new industrial complexes the state is implementing, including 10 in Upper Egypt. Each complex is expected to provide 20 - 25 opportunities for investments, where different forms of businesses can set up and start working. Ahmed Mamdouh & Co. Kreston Egypt offers corporate services to help investors set up their businesses in these complexes with minimal procedures.
The government is also extending its collaborations with all international financial institutions (IFIs) to secure the required finances to support all economic sectors. Companies should seek professional corporate finance services to ensure that they can benefit from these financing opportunities.
President Abdel-Fattah El-Sisi emphasized the role of private sector companies and investments in Egypt; more than 4000 companies from different sizes are now contributing to the development of the economy in Egypt. International investors are constantly assessing the economic situation in Egypt, pumping investments and financing local businesses with the help of local financial advisors in Egypt.
How can Ahmed Mamdouh & Co. Kreston Egypt support your investments in Egypt?
The Egyptian economy offers substantial investment opportunities and a nurturing market to support business growth. To leverage these opportunities and ensure prompt development of the business, it is highly advisable to work with an accounting firm with both a strong local presence and knowledge of the Egyptian market and global experience.
Ahmed Mamdouh & Co. Kreston Egypt is the perfect partner for the success of any business or project in Egypt. The company's extensive local market experience for more than 35 years, mixed with its global knowledge and expertise through Kreston Global network, guarantees the growth of your business or investments in Egypt.
Ahmed Mamdouh & Co. Kreston Egypt consultants work firsthand with clients in different industries in all stages of the business. Our team will help you with everything from feasibility studies to consultation and support on incorporation services for founders starting a new company. We help incorporated companies establish governance and control processes according to the regulations to ensure compliance. Kreston experts also help clients identify the audit universe and prepare the audit plan to reflect the company's performance. In addition to providing business compliance with different policies and laws locally and globally through our extensive network.
Our tax experts are also constantly updated with the recent changes in tax laws that affect business operations. We offer a comprehensive range of tax services covering all business aspects, including annual corporate income tax returns and dividend distribution tax, in addition to assisting with meeting all required tax filings, among other tax services.
Most importantly, our consultants offer corporate maintenance to ensure continuously keeping with regulations; they also provide business restructuring and insolvency services to support organizations during tough economic times.
If your business is growing in Egypt and you are looking for a leading tax firm to support your growth, contact us and we will schedule a consultation with our team.
