Legal Market | April 27, 2026

Doing Business BRICS+ Guide Egypt

Comprehensive Research Report for the BRICS+ Legal Index – Egypt Chapter Jurisdiction: Arab Republic of Egypt

Photo by Alessandro Zanini on unsplash.com

Economy

Hassanein & Partners

Dr. Mohamed Hassanein
Partner

In which sectors of the economy in your country is there currently the largest inflow of foreign investment? In which sectors of the economy is there the greatest presence of foreign business?
In which projects do foreign businessmen mainly invest at present?
Has there been an increase in the number of M&A transactions with foreign participation in 2022-2024?
Which economic sectors in your opinion have the greatest potential for attracting foreign investment? What sectors will be increasingly attractive for foreign business in the future?
What support measures for foreign business exist in your country?
Please give an assessment of how much the political situation in the country affects the economy/investments/foreign trade/development of projects with foreign participation?
What actions of the state in your opinion can limit the activity of foreign business? And what, on the contrary, attracts and promotes the development of projects with foreign participation?
How much do state authorities stimulate / support foreign investors?

1. In which sectors of the economy in your country is there currently the largest inflow of foreign investment? In which sectors of the economy is there the greatest presence of foreign business?

Construction/real estate is one of the most booming sectors in Egypt nowadays. The Egyptian government has invested billions of dollars in the New Capital, highways all over the country, and built more than 20 new cities to accommodate the growing population. Foreign investors have understood the government's trend towards encouraging construction, and they are strongly investing in this sector.

2. In which projects do foreign businessmen mainly invest at present?

Foreign investors mainly invest in oil and gas, renewable energies, and mining in Egypt, but since approximately 15 years ago and due to the construction boom in Egypt, foreign investors have also entered the construction sector.

3. Has there been an increase in the number of M&A transactions with foreign participation in 2022-2024?

There has been a significant increase in M&A transactions with foreign participation, as the Egyptian state is taking significant steps to reduce reliance on domestic investments by privatizing the public sector; this is creating a significant wave of M&A activity.

4. Which economic sectors in your opinion have the greatest potential for attracting foreign investment? What sectors will be increasingly attractive for foreign business in the future?

The construction sector is still top-rated as the Egyptian population is increasing; moreover, Egyptians trust real estate as a store of value due to high inflation rates.

5. What support measures for foreign business exist in your country?

The Egyptian state implements numerous measures to encourage FDI, like providing enhanced legal incentives for foreign investors, more exemptions from taxes and fees, as well as flexible ways of getting money in and out of the country. One of the most recent developments is the Golden License that allows investors to obtain all licenses by one decision from the Prime Minister; this Golden License system frees investors from bureaucracy and corruption.

6. Please give an assessment of how much the political situation in the country affects the economy/investments/foreign trade/development of projects with foreign participation?

Egypt's investment potential has been widely affected by the political situation since the 1952 Revolution when the government nationalized many private companies, also after the January 2011 revolution and the June 2013 revolution. Egypt faced a wave of terrorism that also affected the economy and foreign investment.

But recently, Egypt is very safe, welcoming foreign investments to come and invest freely in the country.

7. What actions of the state in your opinion can limit the activity of foreign business? And what, on the contrary, attracts and promotes the development of projects with foreign participation?

The more the state interferes in domestic investments either by investing by its own bodies or by supporting some companies over others, this significantly contributes in getting FDI to flee out of the country. Building a welcoming culture for FDI is crucial in encouraging foreign investors to come and invest. In addition to this, easing visas, residencies, and welcoming foreign workers helps a lot.

8. How much do state authorities stimulate / support foreign investors?

State authorities highly welcome foreign investors, but the problem lies in a very old system of bureaucracy that cannot be easily dismantled. Also, a long history of resistance to foreign colonialism plays a role in perceiving some investments in special sectors around the country.

About the firm

Hassanein & Partners

Hassanein & Partners is a Cairo-based full-service law firm providing strategic legal solutions to local and international clients. Led by Dr. Mohamed Hassanein, the firm combines a judicial background with strong litigation and transactional expertise.

The firm advises on corporate and commercial law, investment structuring, regulatory compliance, and dispute resolution. It also handles family law and complex cross-border child abduction matters with precision and sensitivity. Hassanein & Partners is known for its professionalism, integrity, and results-driven approach.

Cairo

+201202224217

Legal landscape and international business

Hassanein & Partners

Dr. Mohamed Hassanein
Partner

What are the opportunities/benefits for foreign investors provided for in the legislation to facilitate market entry/company presence in the country?
Are there legal restrictions for foreign investors to operate in the country? For example, what is a foreign company not entitled to do? What activities require local representatives?
How friendly is the legal environment in the country in general for foreign business? Are there legal mechanisms in place to protect investments and foreign business? What are these mechanisms and guarantees?
In your opinion, what legal specifics should foreign companies take into account when planning to enter the market of your country? And private investors?
Currently, there is a trend in the world to relocate business from a number of countries in order to reduce costs/develop new markets/protect business under sanctions pressure. What opportunities are there in the country for transferring business from other foreign jurisdictions (redomiciling), what organizational and legal forms exist for business transfer and company organization? What is more favorable for an investor in terms of legal protection: opening a representative office/joint venture/branch of a company or other?
What specific features of the work of public authorities should foreign investors take into account when entering the market? What should be taken into account when building interaction with public authorities? What should be paid special attention to when organizing a business?
How would you characterize the situation with the regulatory development in the country? How do the state authorities react to the needs of business? How easy/difficult is it to adopt new legislative initiatives?
In which branches of law/economy is the regulation the most rigid?
Which branches of law/economy are most prone to turbulence, where are the most frequent legislative changes and how do they affect business?
What global legislative changes have occurred recently and how have they affected the business climate in the country?
What legislative changes are planned in the short term? What impact will the changes have on the situation of foreign businesses? How positive/negative will these changes be for foreign business?
How is the payment system of the state organized? What opportunities do foreign businesses have in organizing financial flows? What restrictions are imposed on foreign businesses when organizing payments?

1. What are the opportunities/benefits for foreign investors provided for in the legislation to facilitate market entry/company presence in the country?

Foreign investors can enter the Egyptian market easily, similar to Egyptian citizens, after passing the security clearances imposed by law. Foreign investors can enter the Egyptian market in many ways either by establishing new companies or getting engaged in partnerships with Egyptian companies, starting a branch for a foreign company or a representative office. The Egyptian government has issued many decisions to allow for residency by investment in order to allow for partners and their families to enjoy the Egyptian residency and to facilitate their entry to Egypt. Moreover, there had been many decisions to allow for employing foreign workers under certain conditions to allow for foreign companies to use the expertise of the foreign workers as well.

2. Are there legal restrictions for foreign investors to operate in the country? For example, what is a foreign company not entitled to do? What activities require local representatives?

Foreign companies can operate in Egypt in one of two ways: either by establishing a branch that can act on their behalf and conduct business inside the country, or by establishing a commercial representative office that allows for market discovery and preparing commercial reports about the market.

Foreign companies can mainly operate in all sectors, but under certain conditions tailored to each sector.

For example, a foreign company needs security clearances to work in certain geographical areas in Egypt like Sinai and border cities, in addition to this, foreign companies can’t work in areas like guarding and weapon trade, also foreign companies can’t establish banks without the registration and confirmation of the Egyptian central bank and other competent authorities.

3. How friendly is the legal environment in the country in general for foreign business? Are there legal mechanisms in place to protect investments and foreign business? What are these mechanisms and guarantees?

The legal environment is not very friendly to foreign business yet. The courts are not yet fully capable of understanding the need to encourage foreign investors to come. Residency systems are very complicated, and a lawyer cannot provide much assistance in this area, as the applicant must appear in person. Family laws are also not designed to address civil marriages and their implications.

Protection mechanisms include bilateral investment protection agreements between Egypt and the investor's home country. Arbitration clauses also provide significant protection by avoiding the domestic court system.

4. In your opinion, what legal specifics should foreign companies take into account when planning to enter the market of your country? And private investors?

Foreign companies and private investors should thoroughly study the market and invest time and resources to obtain accurate consultations about the market and sectors they plan to enter. Investors are highly advised to employ local legal advisors who are aware of the culture and peculiarities of the market. Investors are also advised to put into account high inflation rates as well as dramatic changes of the price of the local currency.

5. Currently, there is a trend in the world to relocate business from a number of countries in order to reduce costs/develop new markets/protect business under sanctions pressure. What opportunities are there in the country for transferring business from other foreign jurisdictions (redomiciling), what organizational and legal forms exist for business transfer and company organization? What is more favorable for an investor in terms of legal protection: opening a representative office/joint venture/branch of a company or other?

Egypt is a perfect destination for relocating businesses due to cheap workforce, the economic need for foreign currency, and flexibility shown by high-level institutions towards welcoming foreign investments.

The best approaches for relocation are establishing a joint venture or forming an Egyptian company with foreign shareholders, which saves significant time and money while providing flexibility and legal protection.

6. What specific features of the work of public authorities should foreign investors take into account when entering the market? What should be taken into account when building interaction with public authorities? What should be paid special attention to when organizing a business?

Foreign investors should spend time studying the market and relevant public authorities in their target sector; no additional specific tips are necessary beyond thorough preparation. Also foreign investors should understand that entering into partnerships with public authorities means that the partnership’s wealth will be considered as a public fund which means that it will be protected under certain laws that are designed for protecting the public funds. Also investors have to be enjoying high flexibility as bureaucracy is one of the biggest features when dealing with public authorities, there is no definite times for anything.

7. How would you characterize the situation with the regulatory development in the country? How do the state authorities react to the needs of business? How easy/difficult is it to adopt new legislative initiatives?

The Egyptian regulatory bodies are highly effective in responding to business needs. There has also been notable improvement in dialogue and interaction with business communities and associations. The Egyptian government and regulatory bodies are highly demanding foreign investors to enter the Egyptian market. Thick investments that bring big amounts of foreign currency and employ thousands of local workers as well as transfer of technologies and techniques are the ones with high priority to the regulatory body, thus the regulatory body is highly responsive to the needs of these kinds of investment.

8. In which branches of law/economy is the regulation the most rigid?

Investments in defence and security sectors face rigid regulatory policies due to their nature. Investments in border areas also require extensive confirmations and clearances. For example, investing in CCTV cameras or highly sensitive equipment like weapons, drones, etc., will be very difficult for a foreign company to enter , or work in importing or trading in these things.

9. Which branches of law/economy are most prone to turbulence, where are the most frequent legislative changes and how do they affect business?

There is minimal legislative turbulence; frequent changes that significantly affect business are not common.

10. What global legislative changes have occurred recently and how have they affected the business climate in the country?

Post-COVID policies, U.S. tariffs under President Trump have significantly affected businesses in Egypt, Russian-Ukranian war, the war in Gaza and the recent war against Iran have affected the business climate not only in Egypt, but all over the world. Egypt was highly affected by the Red Sea crisis as the Suez canal was negatively under a big pressure. Inflation effects have been highly crushing the economy as well.

11. What legislative changes are planned in the short term? What impact will the changes have on the situation of foreign businesses? How positive/negative will these changes be for foreign business?

The Egyptian government is planning to introduce a new taxation policy that eases relations between the taxation authority and companies (positive for foreign businesses). The taxation authority is working on simplifying the taxation processes and registrations so that it could allow for more individuals and companies to voluntarily engage and register. Also the government is planning to get out of the market by privatization of more public sectors entities and allowing for private investors ; locals or foreigners to acquire these public entities and operate them.

12. How is the payment system of the state organized? What opportunities do foreign businesses have in organizing financial flows? What restrictions are imposed on foreign businesses when organizing payments?

The payment system in Egypt is very effective. Banks, Mastercard, Visa, and digital wallets function well. Foreign investors can bring money into the country easily, provided it complies with the Central Bank's rules and regulations. Previously, there were difficulties repatriating funds due to a foreign currency crisis, but the government has resolved most of these issues by adopting policies that tend to decrease the loss of foreign currency, for example by prioritizing the import policy and by encouraging exporters to deposit their foreign currency in banks and allowing for both individuals and companies to deposit their cash foreign currency in banks with less rigid policies regarding to the investigation of the source of money.

About the firm

Hassanein & Partners

Cairo

+201202224217

Foreign investment

Tahoun Law Firm

Dr. Nermine Tahoun
Partner

What are the rules regulating the activities of foreign investors in the country?
What specific features of legal regulation should be paid attention to when planning investment projects?
What guarantees exist to protect foreign investments in your country? How can investors insure their risks?
What benefits and preferences exist for foreign investors in your country?
Are there any restrictions on the activities of foreign investors? In which business sectors are the greatest number of restrictions, and what are they?
Please name the most common models of structuring foreign investments (e.g. through free economic zones, involvement of commercial agents, others?)
Are there opportunities for foreign investors to enter into projects with state participation? In public-private partnership projects? How are relations with foreign investors structured when implementing such projects?
What risks and pitfalls should foreign investors consider when implementing projects in the country? What should they pay special attention to? In your opinion, name the key points.

1. What are the rules regulating the activities of foreign investors in the country?

There are many laws that contain rules regulating the activities of foreign investors in Egypt, and these include:

Investment Law No. 72/2017.
Companies Law No. 159/1981.
Egyptian Central Bank Law No. 194/2020.
Law No. 230/1996 regulating the ownership of real property and lands by foreigners.

2. What specific features of legal regulation should be paid attention to when planning investment projects?

The legal regulation of foreign investment in Egypt provides a lot of advantages to foreign investors who are seriously investing in Egypt, such as:

A discount of up to 50% on taxes for investments in specific areas like Upper Egypt, the New Administrative Capital, and the most deprived areas.
A discount of up to 30% on taxes for investments in other areas of the region of the country.
Exemption from some fees during the registration and establishment of the company.
A unified customs duty of up to 2% on the machinery needed for the establishment of the project.
Special discounts for Free Zone projects that differ from a zone to another.
The Egyptian state shares the costs of training workers in some projects by an application to the competent authority to retain some of the spent costs.
The Egyptian state bears the costs of providing water, electricity, and gas to the buildings of the project.
Refund of 50% of the paid price for the land of the project if production starts within 2 years of the date of establishment.
The opportunity to receive free lands in certain strategic projects like investing in heavy industries.
Guarantees against nationalization and seizure of lands and property.
Freedom to transfer revenues out of the country.
Special facilities for projects that depend on foreign currency inflows from abroad.

3. What guarantees exist to protect foreign investments in your country? How can investors insure their risks?

The Egyptian Investment Law No. 72/2017 provides foreign investors with guarantees against nationalization and seizure of lands and property. Freedom to transfer revenues out of the country is also guaranteed by the same law. Investors can use bilateral investment treaties (BITs), MIGA (World Bank insurance), or commercial insurance for risks like expropriation or political violence.

4. What benefits and preferences exist for foreign investors in your country?

Advantages of Foreign Investment in Egypt:

Competitive Prices and Operating Costs

One of the key attractions for foreign investors is the relatively low cost of doing business in Egypt compared to both regional peers and global competitors. Labor costs, property rental prices, and utility rates, especially outside major metropolitan areas like Cairo and Alexandria, remain significantly lower than in many emerging economies.
Additionally, Egypt offers competitive input costs for industries such as manufacturing, textiles, agribusiness, and information technology. The low cost structure allows companies to maintain wider profit margins while preserving product affordability, making Egypt an ideal hub for export-oriented production.

Abundant and Cost-Effective Labor Force

Egypt boasts one of the largest workforces in the Middle East and North Africa (MENA) region, with over 60% of the population under the age of 35. The availability of young, trainable, and cost-effective labor is a powerful incentive for firms requiring skilled and semi-skilled workers.

Moreover, Egypt’s focus on higher education, particularly in engineering, medicine, business, and IT, has steadily produced a pool of graduates suitable for technical roles. Global companies in sectors such as business process outsourcing (BPO), software development, and electronics assembly have increasingly turned to Egypt as a talent base.

Strategic Geographic Location

Positioned at the crossroads of Europe, Africa, and Asia, Egypt serves as a natural logistics and trade gateway. The country’s proximity to key markets significantly reduces shipping times and costs for exporters. The Suez Canal, one of the world’s most critical maritime trade routes, provides unparalleled access to global shipping lanes, offering unique advantages for logistics, manufacturing, and energy companies.

Additionally, Egypt maintains strong trade agreements with African, Middle Eastern, and European markets, such as COMESA, GAFTA, and EU Association Agreements, which provide tariff reductions or exemptions that enhance Egypt’s value as a regional export base.

Expanding Infrastructure and Mega Projects

Egypt has invested billions of dollars in infrastructure over the past decade, improving transportation networks, expanding energy capacity, and developing new industrial zones. Projects such as the New Suez Canal, new urban communities, and the New Administrative Capital demonstrate a long-term vision for economic modernization.

Special Economic Zones (SEZs), industrial parks, and logistics hubs, especially around the Suez Canal Economic Zone (SCZone), offer streamlined regulatory systems, tax incentives, and ready-to-use facilities that reduce start-up times for foreign investors.

Tax System and Investment Incentives
Egypt has undertaken significant tax reforms aimed at attracting FDI. Corporate tax rates are relatively competitive compared to regional peers, and various incentives exist for investors in priority sectors such as renewable energy, manufacturing, ICT, logistics, and healthcare.
Investment Law No. 72 of 2017 expanded the range of incentives, including:
- customs and tax exemptions for imported equipment;
- reduced taxes in designated development zones;
- incentives related to employment creation;
- simplified procedures for repatriation of profits and capital.

Many international investors report improved ease of doing business thanks to these reforms, although challenges remain.

Growing Domestic Market

With a population exceeding 110 million, Egypt offers one of the largest consumer markets in Africa and the Arab world. This large and youthful population drives demand across sectors such as food and beverages, retail, telecommunications, real estate, healthcare, and financial services.
Foreign companies entering Egypt often find that the internal market alone justifies investment, even before considering export opportunities.

Emerging Sectors with High Growth Potential
Several industries are rapidly expanding and attracting foreign interest:
- Renewable energy (especially solar and wind).
- Fintech and digital payments.
- E-commerce and logistics.
- Tourism and hospitality.
- Healthcare and pharmaceuticals.
- Natural gas and petrochemicals.

Egypt’s move toward a more digital, diversified economy is creating new pathways for foreign participation.

5. Are there any restrictions on the activities of foreign investors? In which business sectors are the greatest number of restrictions, and what are they?

While Egypt offers substantial opportunities, foreign investors must also consider the structural, regulatory, and macroeconomic challenges that may impact operations.

Complex Work and Money Transfer Regulations

Foreign companies sometimes face difficulties in repatriating profits or receiving payments smoothly, especially during periods of foreign currency shortages. Although the Central Bank has implemented measures to stabilize foreign exchange availability, banks may still impose delays or administrative requirements on large transfers.

Furthermore, regulations governing labor mobility, work permits for foreign staff, and employee residency requirements can be time-consuming and bureaucratic.

Bureaucratic Procedures and Administrative Complexity

Bureaucracy remains one of the most frequently cited obstacles for international investors. Obtaining necessary approvals, certifications, and documents may require navigating through multiple government agencies. Although the government has made progress, such as establishing one-stop shops for investors, the system is still perceived as cumbersome by global standards.

The pace of administrative reform varies between sectors and regions. Companies operating in new economic zones typically experience smoother procedures, while investors in traditional sectors may still encounter delays, unclear regulations, or inconsistent enforcement.

Multiple Licenses and Permits

Many industries require a wide range of licenses and permits before operations can begin – environmental permits, industrial registration, land allocation approvals, safety certifications, and more. The number of permits, combined with varying timelines across authorities, can extend project start-up periods significantly.

Foreign investors often rely on local consultants or legal experts to navigate these requirements. Although such support can mitigate delays, the cost and unpredictability remain a concern.

Foreign Exchange Volatility

Egypt has experienced several currency devaluations in recent years, especially during economic shocks or global supply disruptions. While flexible exchange rates can improve competitiveness, volatility poses risks to companies dependent on imported inputs or those with long-term contracts priced in foreign currency.

Currency fluctuations also impact expatriate salaries, profit repatriation, and financial planning, requiring investors to adopt hedging strategies or diversify revenue streams.

Inflation and Rising Cost of Living
High inflation, often driven by currency depreciation or global commodity prices, can erode consumer purchasing power, increase input costs, and complicate long-term financial projections.
For foreign investors, inflation can influence:
- wage negotiations;
- pricing strategies;
- supply chain costs;
- return on investment timelines.

Companies with heavy import dependence may be particularly exposed.

6. Please name the most common models of structuring foreign investments (e.g. through free economic zones, involvement of commercial agents, others?)

Foreign investors invest in Egypt in variable models, but according to my personal opinion, the model of engagement differs according to the size of the investor and the investment and according to the sector.

For example, small and medium-size investors often engage in business in Egypt through partnerships regulated by contracts covering various areas; some also use local agents.

In contrast, mega investors prefer to engage directly , especially as they are highly equipped with consultants and accountants and they tend to benefit from the incentives for foreign investment in Egypt.

7. Are there opportunities for foreign investors to enter into projects with state participation? In public-private partnership projects? How are relations with foreign investors structured when implementing such projects?

The Egyptian state is leading a big wave of privatization since the 90s, many foreign investors have benefited from buying public companies or getting in a partnership with the Egyptian state in different forms of contracting between public and private sector.

In addition to this, the Egyptian state is encouraging foreign investors to lead the development boom all over the country either in infrastructure projects, transport , renewable energy and mining projects.

The relationship between the public and private sector is organized by the terms and conditions of the partnership whether that contracting is through bidding or by direct and free negotiation.

8. What risks and pitfalls should foreign investors consider when implementing projects in the country? What should they pay special attention to?

There are many challenges Facing Foreign Investors in Egypt:

Legal System and Dispute Resolution

Although Egypt has improved its legal framework for investment, the judicial system can still be slow in resolving commercial disputes. Arbitration is commonly used, especially via international bodies, but enforcement may require navigating local courts.
Ensuring contractual clarity and engaging local legal expertise are essential strategies for risk mitigation.

Infrastructure Gaps in Certain Regions
While major cities and new development zones boast solid infrastructure, some rural and Upper Egypt areas still experience:
- power outages;
- transport network gaps;
- limited industrial utilities;
- inconsistent internet connectivity.

Investors in these regions may need to incur additional costs to develop private infrastructure.

Competition from Informal Markets

Egypt has a substantial informal sector that competes with formal businesses without the same tax obligations or regulatory compliance costs. This can distort market competition, especially in consumer goods, retail, and construction.
Foreign investors, subject to compliance and international standards, may find it challenging to compete with informal operators unless clear sectoral enforcement is strengthened.

Political and Regional Instability Risks

While Egypt has remained relatively stable compared to some neighboring countries, the broader region is subject to geopolitical tensions. Foreign investors may factor in regional conflict risks, supply chain vulnerabilities, and shifts in international trade dynamics.
Egypt's stability is generally well regarded, but investor confidence is often influenced by the broader Middle Eastern and North African landscape.

Environmental and Sustainability Regulations

As global companies shift toward environmentally responsible operations, compliance with local laws and international standards can pose challenges. Waste management, emissions control, water usage, and environmental impact assessments require careful planning, particularly in manufacturing and energy-intensive industries.
However, these challenges also present opportunities in Egypt's growing renewable energy and green investment sectors.

Balancing Opportunities and Risks: Strategies for Successful Investment

Foreign investors who succeed in Egypt often adopt strategies that harmonize the benefits of the market with its unique challenges. Key success factors include:

Partnering with established local firms to navigate regulatory systems and consumer behavior.
Diversifying revenue streams to reduce exposure to currency volatility.
Strategic location choices, such as setting up within the SCZone or industrial parks with streamlined processes.
Investment in human capital through training and retention programs.
Robust legal frameworks within contracts, including arbitration clauses.
Long-term planning, recognizing that Egypt's market rewards long-term commitment over short-term gains.

Egypt remains one of the most promising destinations for foreign investment in the MENA and African regions. Its combination of geographic advantage, a young and capable workforce, competitive operating costs, a large domestic market, and ongoing economic reforms creates a compelling environment for international businesses. Yet, challenges persist – from bureaucracy and regulatory complexities to currency volatility and administrative delays.

For investors willing to conduct thorough due diligence and implement strategic risk-mitigation measures, Egypt offers a fertile landscape for growth, expansion, and regional leadership. As reforms advance and new economic zones mature, foreign direct investment is expected to play an increasingly central role in shaping Egypt's economic future.

About the firm

Tahoun Law Firm

Tahoun Law Firm is a well-established Egyptian law firm with a strong reputation in corporate and commercial practice. The firm advises local and international clients on mergers and acquisitions, capital markets, and regulatory compliance.

It has notable experience in banking, finance, and complex transactional matters across key sectors. Tahoun Law Firm is recognized for its structured legal approach and deep understanding of the Egyptian business environment.

The firm combines technical precision with practical insight to deliver effective and commercially sound legal solutions.

Cairo

0020227353785

Judicial system

Elnaggar & Partners

Ahmed Elnaggar
Partner

General organization of the judicial system; How are cases involving foreign companies handled in court in practice?
Is there a special procedure for consideration of cases involving foreign companies?
What trends/ specifics of the judicial system should a foreign company/foreign businessman take into account when applying to court?
Please name the most striking cases or precedents involving foreigners that have influenced judicial practice?
Is there a need to engage local lawyers for judicial defense of foreigners in local courts?
What are the time limits for consideration of cases? Are there any cases of delaying cases?
How is the choice of jurisdiction for judicial defense made? Is it possible to apply for judicial protection in the courts of the country of origin of the foreign company?
Is it possible to enforce a foreign judgment in a court of local jurisdiction? What are the special features of enforcement of foreign judgments? Does the principle of reciprocity apply or is it obligatory to have an agreement between countries on the enforcement of court decisions?
How are commercial disputes involving a foreign company defended? What arbitration centers exist in the country? Are there any opportunities to obtain protection in international arbitration?

1. General organization of the judicial system; How are cases involving foreign companies handled in court in practice?

Egypt operates a dual judicial system consisting primarily of:

Ordinary Courts (Civil, Commercial, Criminal).
Administrative Courts (State Council – Conseil d'État).

For foreign companies, most disputes fall within the ordinary courts, particularly:

Civil courts for contractual disputes.
Economic Courts for corporate, banking, investment, Intellectual property and capital markets matters.

There is no discrimination based on nationality. Foreign companies litigate under the same procedural rules as Egyptian entities. However, cases involving foreign elements often require:

Certified Arabic translations.
Legalization of foreign documents.
Proof of legal existence and authority of foreign entities.

In practice, judges are accustomed to handling foreign-related disputes, especially in Cairo, Alexandria, and major economic centers.

2. Is there a special procedure for consideration of cases involving foreign companies?

There is no separate procedural track exclusively for foreign companies. However, cases with a foreign element trigger specific procedural considerations under Egyptian private international law, including:

Determination of jurisdiction.
Applicable law (Egyptian or foreign).
Recognition of foreign legal personality.
Service of process abroad.

The Economic Courts, established under Law No. 120 of 2008, function as a form of specialized forum and represent the closest equivalent to a "special procedure" for complex foreign commercial disputes.

3. What trends/specifics of the judicial system should a foreign company/foreign businessman take into account when applying to court?

Several practical realities must be understood:

Formalism: Egyptian courts are document-driven. Procedural defects can be fatal.
Language: Arabic is mandatory; foreign-language documents must be translated.
Judicial Independence: Judges are constitutionally independent, but conservative in legal interpretation.
Expert Reliance: Courts heavily rely on judicial experts in technical and financial disputes.

Foreign litigants who respect procedural discipline and present structured legal arguments generally receive fair consideration.

4. Please name the most striking cases or precedents involving foreigners that have influenced judicial practice?

Several investment and arbitration-related cases have shaped judicial attitudes, particularly regarding:

Enforcement of arbitration agreements.
Limits of state liability.
Protection of acquired rights of foreign investors.

Cases involving energy, infrastructure, and large-scale concession projects have contributed to stronger judicial recognition of international arbitration clauses and contractual stability.

Wagih Seiag’s case for example was one of the most important cases that arose due to the government’s sudden decision to cancel the decision of allowing for a foreign company to invest in an area near to the pyramids. This case has been a milestone case in establishing the responsibility of state and the enforcement of foreign arbitral awards against the government.

Also the case of Egyptian-Israeli gas providing agreement, in this case the Egyptian government failed to fulfil its obligations to provide gas to Israel due to the terrorist attacks on the pipes due to the Arab spring incidents. Israel has gained an arbitral award against the Egyptian government, but later on both governments have managed to settle it by negotiations.

5. Is there a need to engage local lawyers for judicial defense of foreigners in local courts?

Absolutely. Representation before Egyptian courts requires licensed Egyptian lawyers. Beyond legal necessity, local counsel is indispensable due to:

Procedural complexity.
Court culture and practice.
Interaction with court-appointed experts.

Foreign legal advisors may assist strategically, but courtroom advocacy must be conducted locally.

6. What are the time limits for consideration of cases? Are there any cases of delaying cases?

Statutory time limits exist, but in practice:

First-instance civil cases: 12–24 months.
Appeals: additional 12–18 months.

Delays arise from:

Expert reports.
Adjournments for documentation.
Court congestion.

Economic Courts have improved timelines, but litigation in Egypt should be viewed as medium to long-term.

7. How is the choice of jurisdiction for judicial defense made? Is it possible to apply for judicial protection in the courts of the country of origin of the foreign company?

Jurisdiction is determined by:

Place of contract performance.
Defendant's domicile.
Location of assets.

Foreign courts may have jurisdiction contractually, but Egyptian courts retain exclusive jurisdiction over:

Real estate in Egypt.
Certain labor and administrative matters.

In practice, foreign judgments alone offer limited protection unless enforceable in Egypt.

8. Is it possible to enforce a foreign judgment in a court of local jurisdiction? What are the special features of enforcement of foreign judgments? Does the principle of reciprocity apply or is it obligatory to have an agreement between countries on the enforcement of court decisions?

Yes, but under strict conditions. Enforcement requires:

Reciprocity (either treaty-based or factual).
Finality of judgment.
Proper service and due process.
Compatibility with Egyptian public order.

Enforcement is judicial, not administrative, and may be contested.

9. How are commercial disputes involving a foreign company defended? What arbitration centers exist in the country? Are there any opportunities to obtain protection in international arbitration?

Arbitration is the preferred mechanism for foreign investors.

Egypt hosts reputable arbitration centers, including:

Cairo Regional Centre for International Commercial Arbitration (CRCICA).
Specialized arbitration chambers under industry bodies.

Egypt is a signatory to the New York Convention, and arbitration awards are generally enforceable. International arbitration remains the most effective dispute-resolution tool for foreign investors in Egypt.

About the firm

Elnaggar & Partners

Elnaggar & Partners is an Egyptian law firm providing comprehensive legal services to corporate and individual clients. The firm advises on corporate structuring, commercial transactions, and regulatory compliance within the Egyptian market. It also handles dispute resolution, representing clients before courts and arbitral tribunals.

Elnaggar & Partners supports foreign investors with market entry, licensing, and ongoing legal advisory services. The firm is recognized for its practical approach, responsiveness, and commitment to delivering reliable legal solutions.

Giza	+20233477965

How business is organized

Hassanein & Partners

Dr. Mohamed Hassanein
Partner

Are there restrictions for foreign companies by type of business? Which business sectors are "closed" to foreigners?
What organizational-legal form can a foreign company choose to operate in the country depending on the type of business/activity chosen?
Company/branch or permanent establishment/joint venture – what are the specifics of each organizational-legal form that should be taken into account when choosing?
How complicated/easy is the process of company registration? What should be taken into account by representatives of foreign business?
How long does it take to register a company in practice?
How is business structuring in free economic zones carried out?

1. Are there restrictions for foreign companies by type of business? Which business sectors are "closed" to foreigners?

Foreign companies can invest in most of the sectors in Egypt , but restrictions apply to certain sensitive areas such as defense, security, and national security. Foreign ownership is prohibited or limited in sectors like military production, certain border areas (e.g., Sinai or other border regions), and specific activities in mining, cybersecurity, and hazardous waste management (per Negative Investment List under Investment Law No. 72/2017).

2. What organizational-legal form can a foreign company choose to operate in the country depending on the type of business/activity chosen?

Egyptian law provides several vehicles through which business can be conducted. The choice of legal form depends on the size of the project, number of investors, liability considerations, and regulatory requirements.

Limited Liability Company (LLC): The most commonly used structure for small and medium enterprises. It requires at least two partners and allows up to fifty. Liability is limited to each partner's capital contribution. There is generally no minimum capital requirement, and it is suitable for startups and family businesses.
Joint Stock Company (JSC): Designed for larger enterprises and investment-heavy projects. It requires at least three shareholders, capital divided into shares, and a board of directors. Certain regulated sectors require this structure.
One-Person Company (OPC): Allows a single natural or legal person to establish a limited liability company, combining simplified governance with limited liability protection.

Foreign companies may also establish a branch to conduct commercial activities linked to a parent company contract, or a representative office limited to liaison and market research functions.

3. Company/branch or permanent establishment/joint venture – what are the specifics of each organizational-legal form that should be taken into account when choosing?

Establishing a branch for a foreign company in Egypt requires the following key documents (all must be translated into Arabic and legalized by the Egyptian consulate in the parent company's home country):

Board resolution of the parent company approving the branch establishment in Egypt, specifying its purpose, managers, their responsibilities, and salaries.
Commercial registry extract and memorandum/articles of association of the parent company, confirming authorization to open branches abroad.
Power of attorney delegating authority to the local agent or lawyer.
Underlying contract with an Egyptian public or private entity justifying the branch's purpose.

Starting a company in Egypt even if the shareholders are foreigners means that the company is an Egyptian company, in order to establish this kinds of companies with foreign shareholders, it differs according to the type of company chosen to be established, but mainly these papers shall be required:

Power of attorney, copies of passports of the shareholders and copies of their residencies in Egypt, if they are residents.
Security clearance on all foreign shareholders.
Bank deposit (refundable after establishment).

4. How complicated/easy is the process of company registration? What should be taken into account by representatives of foreign business?

The process of company registration remains bureaucratic due to multiple agency interactions and system updates, though legal barriers are minimal. Key steps include name reservation, drafting Articles of Association, capital deposit (if required), the General Authority for Investment (GAFI) submission, commercial registry, tax and VAT registration, social insurance, and sector-specific licenses.

Representatives of foreign businesses should plan for flexibility, as timelines are not strictly enforced.

GAFI tried to overcome bureaucracy by creating a VIP route that allows investors to register a company in 1 day, but the problem persists as the company has to register with the commercial registrar and taxation authority and other authorities according to the type of investment activity.

5. How long does it take to register a company in practice?

On the ordinary mode, for Egyptian shareholders, establishing a company could take 2-3 months. For a VIP mode, it could take 2-3 working days.

For foreign investors, it could take 3-6 months depending on the security clearances of the shareholders to be fulfilled. The prime minister has created a golden license mode that allows for foreign companies to get all the needed confirmations one shot by a simple decision from the prime minister of Egypt, but this requires the company to be investing in a mega project.

6. How is business structuring in free economic zones carried out?

Establishing a company in an Egyptian free zone requires the same mainland incorporation standards (Companies Law 159/1981 or Investment Law 72/2017) plus Free Zone Authority approval. Companies in zones like Suez Canal Economic Zone (SCZone) follow LLC/JSC/OPC procedures, with added requirements: zone-specific business plan, operational zoning, and export focus verification.

Zones provide tax/customs incentives (e.g., 0% corporate tax on exports) but mandate compliance with zone regulations.

About the firm

Hassanein & Partners

Cairo

+201202224217

Foreign trade regulation

ElAttar Law Firm

Ahmed ElAttar
CEO & Founder

What are the country's export/import control requirements/restrictions that foreign companies need to consider?
Are there any restrictions/export/import barriers in the country for foreigners?
What specifics of interaction with customs when organizing foreign trade activities in the country could you abolish? What does a foreign business need to consider?
What are the specifics of international contracts, what should be taken into account in practice when concluding a contract?
How is the system of settlements in foreign currency built? Name the specifics of currency regulation in the country, if any?
What measures of responsibility are stipulated in your country in case of violation of customs legislation?
How are disputes with customs authorities resolved in your country? Are there special authorities responsible for customs disputes?

1. What are the country's export/import control requirements/restrictions that foreign companies need to consider?

Foreign companies engaging in import or export activities in Egypt must comply with a comprehensive regulatory framework governed primarily by Customs Law No. 207 of 2020, Import and Export Law No. 118 of 1975, and their executive regulations.

Key requirements include:

Registration in the Importer or Exporter Registry with the General Organization for Export and Import Control (GOEIC).
Compliance with product conformity standards, quality controls, and safety requirements.
Submission of accurate customs declarations supported by commercial invoices, packing lists, certificates of origin, and transport documents.
Adherence to pre-shipment inspection rules where applicable.
Compliance with Egyptian standards or internationally recognized standards accepted by Egyptian authorities.

Failure to meet these requirements may result in shipment delays, fines, or rejection of goods.

2. Are there any restrictions/export/import barriers in the country for foreigners?

Egypt generally adopts an open trade policy; however, certain restrictions exist in the interest of public order, national security, health, and consumer protection.

These restrictions include:

Prohibited or restricted goods (such as certain chemicals, weapons, and dual-use items).
Mandatory registration of foreign manufacturers exporting specific goods to Egypt.
Sector-specific restrictions requiring special approvals (e.g., pharmaceuticals, food products, telecommunications equipment).
Temporary trade measures, such as safeguard duties or anti-dumping measures, in line with WTO rules.

Foreign ownership itself is not a barrier, but compliance with regulatory and licensing requirements is strictly enforced.

3. What specifics of interaction with customs when organizing foreign trade activities in the country could you abolish? What does a foreign business need to consider?

Foreign businesses must be familiar with Egypt's customs clearance procedures, which have been significantly modernized under the new Customs Law.

Key aspects include:

Electronic submission of customs documents through the NAFEZA Single Window System.
Advance Cargo Information (ACI) filing prior to shipment arrival.
Risk-based inspection mechanisms, reducing physical inspections for compliant traders.
Payment of customs duties, VAT, and applicable fees through electronic channels.

Understanding these procedures is critical to avoiding delays, demurrage costs, and compliance risks.

Foreign businesses cannot bypass:

Accurate valuation of goods for customs purposes.
Correct tariff classification according to the Harmonized System.
Disclosure of the true origin of goods.
Payment of applicable customs duties and taxes.
Compliance with inspection and audit requirements.

Any attempt to circumvent these obligations may expose the business to severe penalties, including seizure of goods and criminal liability.

4. What are the specifics of international contracts, what should be taken into account in practice when concluding a contract?

International trade contracts involving Egypt must carefully address:

Applicable law and dispute resolution mechanisms.
Currency of payment and exchange regulations.
Delivery terms (Incoterms).
Customs clearance responsibilities.
Force majeure and change-in-law clauses.
Compliance with Egyptian public policy and mandatory legal provisions.

Well-drafted contracts reduce regulatory risks and protect foreign parties against unforeseen legal complications. In practice, foreign companies should:

Conduct legal due diligence on Egyptian partners.
Ensure contracts are enforceable under Egyptian law if chosen.
Anticipate delays linked to customs or regulatory approvals.
Align contractual timelines with realistic clearance processes.
Include detailed documentation and compliance obligations.

These considerations are essential for operational continuity and legal certainty.

5. How is the system of settlements in foreign currency built? Name the specifics of currency regulation in the country, if any?

Foreign currency settlements in Egypt are regulated by the Central Bank of Egypt (CBE).

Key features include:

Payments for imports and exports are permitted in foreign currencies through licensed banks.
Documentary credits or collection mechanisms are commonly required.
Compliance with foreign exchange reporting obligations.
Restrictions may apply during exceptional economic circumstances, subject to CBE directives.

Despite regulation, Egypt supports international settlements to facilitate trade and investment. Foreign businesses must comply with:

Anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Banking documentation requirements.
Reporting obligations for foreign currency transactions.
Limits on cash transactions and mandatory bank transfers for trade payments.

Non-compliance may result in blocked transactions or regulatory scrutiny.

6. What measures of responsibility are stipulated in your country in case of violation of customs legislation?

Violations of customs laws may lead to:

Administrative fines.
Confiscation of goods.
Additional customs duties and taxes.
Suspension or revocation of import/export licenses.
Criminal liability in cases involving fraud or smuggling.

Penalties are proportionate to the severity and intent of the violation. Under Egyptian law, legal representatives, managers, or authorized agents may be held personally liable if violations result from their actions, negligence, or deliberate misconduct.

This reinforces the importance of strong internal compliance systems.

7. How are disputes with customs authorities resolved in your country? Are there special authorities responsible for customs disputes?

Customs disputes in Egypt follow a structured process:

Administrative grievance procedures.
Technical review committees.
Judicial review before competent courts.

The Customs Law encourages settlement and reconciliation before litigation where possible. Customs disputes are reviewed by:

Specialized customs committees.
Economic courts with jurisdiction over customs and trade disputes.
Administrative courts in cases involving regulatory decisions.

These bodies ensure technical expertise and procedural fairness.

Foreign companies have full legal standing to challenge customs decisions, provided they follow procedural requirements and deadlines. Judicial oversight offers a legal safeguard against arbitrary or incorrect administrative actions.

About the firm

ElAttar Law Firm

ElAttar Law Firm is a Cairo-based law firm offering expert legal services to both local and international clients. The firm specializes in corporate and commercial law, investment advisory, and regulatory compliance. It provides litigation and dispute resolution services across civil, commercial, and administrative matters.

ElAttar Law Firm also advises on family law, succession, and cross-border legal issues. The firm is known for its professional integrity, client-focused approach, and practical legal solutions.

Cairo

+201116122273

Banking operations

Hassanein & Partners

Loai Rahim
Partner

What legislative requirements exist for the organization of banking operations for foreign companies/non-residents?
What requirements exist for opening accounts of foreign companies and individuals? How are foreign companies and individuals checked when opening accounts? What documents/guarantees/confirmations of origin of capital should be provided?
Is it obligatory for a foreign company to have an office in the country and company registration with state authorities to open a bank account?
Does a private investor have to obtain a residence permit or other documents to open a bank account?
Can a foreign company get a loan from a bank for business development? What are the requirements for obtaining a loan?
How can settlements from a foreign company with local partners be organized?
Are there restrictions for bringing foreign currency into the country in cash/cashless form?
Are cash payments permissible?
How to organize non-cash settlement? What documents are required?
Is it possible to open a foreign currency account in the country? Are there any restrictions in the country?
Is it possible to make settlements with counterparties in foreign currency? Are there any restrictions in the country?
How is it possible to make withdrawals from the account of a foreign company? Is withdrawal of funds in foreign currency allowed?
How can funds be transferred abroad? What is required for this?
How is financing of transactions, trade and business operations of a foreign company done? Are special authorizations required? Are any additional deposits required in the accounts? How can payment be guaranteed?
How are the financial statements of the foreign company structured? What documents/confirmations of financial transactions need to be submitted? To which authorities?

1. What legislative requirements exist for the organization of banking operations for foreign companies/non-residents?

In Egypt, banking operations are primarily governed by Banking Law No. 194 of 2020 and the regulations issued by the Central Bank of Egypt (CBE). Foreign companies and non-residents may conduct banking operations through licensed Egyptian banks. Banks must comply with Anti-Money Laundering Law No. 80 of 2002, "Know Your Customer" (KYC) regulations, and foreign exchange regulations issued by the CBE. There is no prohibition on foreign entities opening accounts; however, strict compliance and disclosure obligations apply.

2. What requirements exist for opening accounts of foreign companies and individuals? How are they checked? What documents/guarantees of origin of capital are required?

For foreign companies, banks require: Certificate of Incorporation (legalized), Articles of Association, Board Resolution authorizing account opening, identification of directors and Ultimate Beneficial Owners (UBOs), tax registration (if operating locally), proof of address, and declaration of source of funds.

For foreign individuals: valid passport, entry visa or residence permit (if applicable), proof of address, and documentation evidencing lawful source of funds.

Banks conduct KYC procedures, enhanced due diligence where required, sanctions screening, and UBO identification. Proof of lawful origin of funds is mandatory.

3. Is it obligatory for a foreign company to have an office in Egypt to open a bank account?

Not necessarily. A foreign company may open a non-resident account without establishing a branch. However, if it intends to conduct commercial activity in Egypt, it must register a branch or company with the competent authorities.

4. Does a private investor need a residence permit to open a bank account?

A residence permit is not strictly required to open a non-resident account. However, for long-term banking relationships or credit facilities, banks typically require valid residency documentation.

5. Can a foreign company get a loan for business development? What are the requirements?

A foreign company operating through a registered entity in Egypt may obtain financing subject to legal registration, audited financial statements, business plan, credit assessment, and provision of collateral such as real estate, corporate guarantees, or cash margins.

6. How can settlements with local partners be organized?

Settlements may be conducted via local bank transfers (EGP or foreign currency), documentary credits, documentary collections, or escrow arrangements. Trade-related transactions must comply with CBE regulations.

7. Are there restrictions on bringing foreign currency into Egypt?

Cash amounts exceeding USD 10,000 (or equivalent) must be declared upon entry. Cashless transfers are permitted through licensed banks, subject to Anti-money laundering (AML) compliance. Declaring the source of the money and relationship to the depositing party will be a crucial question that needs an answer to the bank and Anti-money laundering authorities.

8. Are cash payments permissible?

Yes, but commercial transactions exceeding EGP 15,000 between companies are generally required to be conducted through non-cash methods in accordance with financial inclusion regulations.

9. How to organize non-cash settlement? What documents are required?

Non-cash settlements are conducted via bank transfers, SWIFT payments, letters of credit, or documentary collection. Required documents include commercial contracts, invoices, tax documentation, and import/export documentation where applicable.

10. Is it possible to open a foreign currency account? Are there restrictions?

Both residents and non-residents may open foreign currency accounts (USD, EUR, etc.). Transfers must comply with CBE regulations and AML requirements. Declaring the source of the money and relationship to the depositing party will be a crucial question that needs an answer to the bank and Anti-money laundering authorities.

11. Is it possible to settle with counterparties in foreign currency?

Yes, particularly in international trade or where one party is foreign. Purely domestic transactions are generally conducted in Egyptian Pounds unless justified.

12. How can withdrawals be made? Is withdrawal in foreign currency allowed?

Withdrawals may be made in cash or by transfer. Foreign currency cash withdrawals are permitted subject to bank liquidity and documentation requirements.

13. How can funds be transferred abroad? What is required?

Funds may be transferred abroad via SWIFT transfers, trade finance instruments, or profit repatriation mechanisms. Supporting documentation, tax clearance (if applicable), and contractual justification are required. Egyptian law guarantees repatriation of profits and capital for investors.

14. How is financing of transactions organized? Are special authorizations required?

Financing tools include letters of credit, letters of guarantee, factoring, and bank loans. Special authorizations are generally not required unless operating in regulated sectors. Banks may require collateral or margin deposits. Financing projects in Egypt varies according to the applicant ; an individual or a company, local or foreigners, the amount of loan needed and the guarantees available by the applicant.

Banks are really cautious when financing projects that involve a foreign party as they ask for more guarantees to secure that loans could be repaid in the due time.

15. How are financial statements structured? What documents must be submitted and to which authorities?

If a branch or subsidiary is established in Egypt, financial statements must comply with Egyptian Accounting Standards. Annual balance sheets, profit and loss statements, auditor's reports, and tax filings must be submitted to the Egyptian Tax Authority and other relevant authorities. If no legal presence exists, only banking compliance documentation is required.

About the firm

Hassanein & Partners

Cairo

+201202224217

Taxation

ElAttar Law Firm

Ahmed ElAttar
CEO & Founder

What are government agencies responsible for tax control?
What are the types of taxes and fees in the country that foreign companies are required to pay?
Are there specifics of VAT calculation for a foreign company?
What is transfer taxation on transactions of a group of foreign companies structured?
What are the indirect taxes/excise taxes in the country?
What tax strategy would you recommend for a foreign company? What are the most favorable tax regimes for corporations, businesses and foreign trade firms?
What specifics of taxation and tax reporting of foreign companies could you note? How is the tax reporting of a foreign company structured? What specifics should an investor consider?
What is taxation in free economic zones?
Are there agreements on exchange of financial and tax information?

1. What are government agencies responsible for tax control?

Egypt's tax policy is a key instrument for both fiscal stability and investment attraction. Recent reforms emphasize dispute resolution and settlement, digital compliance (e‑invoicing/e‑receipt), and a broader VAT base with targeted exemptions. For BRICS investors, the practical question is not only headline rates, but also certainty, documentation standards, and compliance cost.

The tax ecosystem is primarily managed through:

Egyptian Tax Authority (ETA): corporate income tax, VAT, withholding, stamp duty, unified tax procedures and audits.
Egyptian Customs Authority: customs duties and border-related levies.
General Authority for Investment and Free Zones (GAFI): investment licensing and investment-law incentives; free zones governance.
Financial Regulatory Authority (FRA): tax-relevant oversight for capital markets/non-banking financial activities.
Egyptian Real Estate Tax Authority.

2. What are the types of taxes and fees in the country that foreign companies are required to pay?

There is no strict guide book on taxes and fees in Egypt neither for Egyptians nor foreigners. A foreign investor typically faces the following layers (depending on structure and activity):

Corporate Income Tax (CIT): generally 22.5% on taxable profits for resident companies; foreign entities may be taxed through a permanent establishment (PE) when conditions are met.
Value Added Tax (VAT): standard 14% on taxable supplies; special treatment exists for certain schedule items and exemptions.
Withholding taxes: may apply on payments to non-residents (e.g., dividends, interest, royalties, service fees), subject to treaty relief.
Stamp duty and state fees: may apply on certain instruments/transactions.
Customs duties: apply on importation of goods; investment law may offer preferential treatment on machinery/equipment for qualified projects.
Payroll and social insurance: applies when employing staff in Egypt, subject to labor/social insurance regulations.

3. Are there specifics of VAT calculation for a foreign company?

VAT: Practical Rules, Including Non-Resident and Digital/Remote Services

VAT in Egypt is governed by VAT Law No. 67 of 2016 and its amendments. Foreign businesses should focus on:

Registration: VAT registration is required when thresholds/conditions are met; certain non-resident suppliers may have registration obligations in specific cases. Avoiding double taxation remains a crucial topic specially for foreign investors as well as tax evasion.
Imported services/reverse-charge: VAT may be collected through mechanisms applicable to services received in Egypt from abroad.
Digital and remote services: ETA issued VAT guidelines for non-resident vendors supplying digital/remote services into Egypt (effective from June 2023).
Refunds and exports: exporters and certain eligible taxpayers can access VAT refund mechanisms subject to statutory conditions and documentation. The Egyptian government is highly encouraging exporting so that foreign currency reserves remain stable so the government has put many incentives for exporters when they export to certain limits that they can get a refund.

2025 VAT Amendments (Law No. 157 of 2025): What Changed and Why It Matters

Law No. 157 of 2025 introduced significant amendments to VAT Law No. 67 of 2016 (effective mid‑July 2025). Key market-relevant impacts include:

Broader VAT base and revised treatment for selected goods and services (including cigarettes and alcoholic products).
Contracting and construction: moving certain contracting/construction activities from scheduled taxation to the general VAT regime (14%), improving input VAT deductibility but increasing headline tax rate for some operations.
Updates to exemptions and specific sector treatments (requiring contract pricing and compliance recalibration).

4. What is transfer taxation on transactions of a group of foreign companies structured?

Transfer Pricing and Intra-Group Transactions (OECD-Aligned)

Egypt applies transfer pricing rules based on the arm's length principle, supported by the Egyptian Transfer Pricing Guidelines (ETPG). Multinational groups should operationalize compliance through:

Early mapping of related-party transactions (goods, services, financing, intangibles).
Selecting defensible methods and benchmarking.
Maintaining documentation (Master File/Local File where applicable) and disclosure forms as required.
Monitoring thresholds and legislative updates affecting documentation scope (including updates reported in 2024 affecting TP materiality).

Corporate Income Tax: Key Concepts for Foreign Groups (Including Law No. 30 of 2023 amendments)

Corporate taxation is primarily governed by Income Tax Law No. 91 of 2005 (as amended). Law No. 30 of 2023 introduced notable amendments including aspects relating to permanent establishments and certain cross-border concepts. Avoiding double taxation remains a crucial topic specially for foreign investors as well as tax evasion.

5. What are the indirect taxes/excise taxes in the country?

Indirect taxes include: VAT (14%), customs duties, stamp duty. Excise taxes covered under VAT Law No. 157/2025 updates for cigarettes and alcoholic products. Customs duties apply on imports with investment law relief available for machinery/equipment.

6. What tax strategy would you recommend for a foreign company? What are the most favorable tax regimes for corporations, businesses and foreign trade firms?

I recommend for a foreign investor to check on the investment map put by the Egyptian government so that incentives can be clearly shown on the investment in every certain sector. In my own point of view, I think that investing in heavy industries that tend to export their products out of Egypt would be the best tax approach as investing in this sector will decrease the costs of lands, getting refunds on workers’ training, getting paybacks on exports as well.

The 2025 Tax Facilities Package: Laws No. 5, 6 and 7 of 2025. Egypt enacted a package of laws in February 2025 aiming to integrate informal activity, incentivize SMEs, and modernize unified tax procedures:

Law No. 5 of 2025 – Settlement and reconciliation mechanisms for legacy disputes.
Law No. 6 of 2025 – SME incentives for projects ≤ EGP 20M turnover.
Law No. 7 of 2025 – Unified tax procedure amendments.

Free Zones and Special Economic Zones: customs relief, repatriation advantages, licensing requirements.

Key Laws and Recent Updates (Quick Map)

Instrument	Subject	Practical Investor Impact
Income Tax Law No. 91 of 2005 (as amended)	Corporate income tax / PE concepts	Determine taxable presence and profit attribution; manage WHT and documentation
Law No. 30 of 2023	Amendments to Income Tax Law	Raises importance of PE analysis and cross-border structuring
VAT Law No. 67 of 2016 (as amended)	VAT system	Pricing, invoicing, deductibility, refunds and compliance
Law No. 157 of 2025	VAT amendments	Sector repricing; construction / contracting under general VAT; updated exemptions
Law No. 5 of 2025	Tax settlement/reconciliation	Faster dispute closure; useful in M&A due diligence and legacy exposure clean-up
Law No. 6 of 2025	SME incentives/facilities	Simplified regime for eligible turnover; fee exemptions; formalization incentives
Law No. 7 of 2025	Unified tax procedure amendments	Procedural facilitation; settlement of offenses; reduced litigation friction

7. What specifics of taxation and tax reporting of foreign companies could you note? How is the tax reporting of a foreign company structured?

Tax Reporting: What Foreign Investors Must Get Right

Compliance quality is a strategic variable. Core compliance pillars include:

Accurate legal characterization of presence (subsidiary vs branch vs PE vs representative office).
Robust bookkeeping and timely filings (CIT returns, VAT returns, WHT remittances).
Digital compliance (e‑invoicing/e‑receipt) integrated into finance operations.
Transfer pricing documentation aligned with ETA expectations.
Contract drafting that clearly allocates tax burden and addresses VAT/WHT gross-up clauses.

Digital Tax Administration: E‑Invoicing and E‑Receipt

Foreign investors should build systems for invoice workflows, ERP/API readiness, supplier onboarding consistent with ETA digital requirements.

Practical Recommendations (Investor Checklist)

Choose the structure early: subsidiary vs branch vs project-based PE; model WHT and VAT impacts before signing contracts.
Implement e‑invoicing/e‑receipt readiness and data governance from day one.
Build a transfer pricing file before the first related-party transaction.
Use settlement and reconciliation options when acquiring assets with legacy exposures.
Contract hygiene: tax clauses, VAT pricing, gross-up, documentation obligations, dispute resolution mechanisms.

8. What is taxation in free economic zones?

Free zones and special economic regimes can offer substantial advantages, commonly including customs relief and distinct fee/treatment models, subject to licensing and activity type. Investors should assess: eligibility, repatriation and local market sales rules, documentation standards, and supply-chain fit. Economic zones and free zones have their own eligibility criterias depending on the sector and the size of investment. Taxation in free economic zones also requires highly specialized tax experts assisting the company so that investing in the free zone area shouldn’t be considered as a gate for tax evasion.

9. Are there agreements on exchange of financial and tax information?

Egypt maintains a wide treaty network for avoiding double taxation. Inbound investors should build a treaty-aware model for dividends, interest, royalties, and service fees, while aligning substance and reporting with global transparency trends. Egypt is highly engaging on many treaties to avoid double taxation with many countries like the UAE and other countries that allows for authorities in both countries to share information and to effectively get the tax on revenues acquired.

About the firm

ElAttar Law Firm

ElAttar Law Firm also advises on family law, succession, and cross-border legal issues. The firm is known for its professional integrity, client-focused approach, and practical legal solutions.

Cairo

+201116122273

M&A and securities transactions

Osama Badr
Strategic Legal Advisor

Are there any restrictions on the purchase of assets (business and securities) for non-residents?
How is the purchase of business by non-residents regulated by law in practice? What should an investor stipulate?
How is the securities market regulated in your country? How can securities be acquired?
How can one invest in stocks and securities? What are the main stock exchange instruments in your country?
How are public and private investments regulated by law?
What should a non-resident stipulate when investing in securities?
Is it possible to relocate business from other jurisdictions to your country?

1. Are there any restrictions on the purchase of assets (business and securities) for non-residents?

Yes, there are regulatory restrictions, but no general prohibition.

a) Purchase of Businesses and Business Assets

Non-residents are allowed to own businesses and assets in Egypt under:

Investment Law No. 72 of 2017
Companies Law No. 159 of 1981

There is no general cap on foreign ownership, except for certain regulated or strategic sectors, such as:

Activities in Sinai (subject to special security approvals).
Media and press.
Certain national security-related activities, like security and defense sectors.

b) Purchase of Securities

Non-residents may invest in:

Shares.
Bonds.
Treasury bills and treasury bonds.

Subject to compliance with:

Financial Regulatory Authority (FRA).
Central Bank of Egypt (CBE).
Anti-money laundering and "Know Your Customer" (KYC) rules.

2. How is the purchase of business by non-residents regulated by law in practice? What should an investor stipulate?

Practical Regulation

Business acquisition by non-residents is regulated through:

General Authority for Investment and Free Zones (GAFI).
Commercial Registry.
Tax Authority.
Licensed Egyptian banks.

Key Clauses an Investor Should Stipulate

A non-resident investor should ensure:

Right to repatriate profits and capital.
Arbitration clause, preferably international arbitration (ICSID or UNCITRAL).
Stabilization clause (protection against adverse legal changes).
Governing law and jurisdiction clause.
Protection against expropriation without fair compensation.
Completion of legal, financial, and tax due diligence.

3. How is the securities market regulated in your country? How can securities be acquired?

Regulatory Authorities:

Financial Regulatory Authority (FRA).
Egyptian Exchange (EGX).

Governing Law:

Capital Market Law No. 95 of 1992 and its Executive Regulations.

Acquisition Process

To acquire securities, an investor must:

Open a trading account with a licensed brokerage firm.
Open a custodian account with an approved custodian bank.
Transfer funds through an Egyptian bank.
Execute transactions on the Egyptian Exchange.

4. How can one invest in stocks and securities? What are the main stock exchange instruments in your country?

There are various ways to invest in stocks and securities in Egypt, as follows:

Direct Purchase of Shares

This is the most straightforward method of investing in equities through the Egyptian Exchange (EGX):

Investors buy shares of listed companies via licensed brokerage firms.
Returns come from:

Capital gains (increase in share price).
Dividends (profit distribution).

Suitable for investors who:

Want control over their portfolio.
Have moderate to high risk tolerance.
Requires active monitoring and market knowledge.

Investment through Mutual Funds

Mutual funds pool money from multiple investors and are managed by professional fund managers.

Types in Egypt include:

Equity funds.
Fixed income funds.
Balanced funds.
Money market funds.

Advantages:

Diversification.
Professional management.
Lower risk compared to direct stock picking.
Investors buy "units" rather than individual securities.

Government Bonds and Treasury Bills

Issued by the Central Bank of Egypt on behalf of the government.

Treasury Bills (T-bills):

Short-term (typically 3, 6, 9, or 12 months).
Sold at a discount and redeemed at face value.

Treasury Bonds:

Medium to long-term (2–10+ years).
Pay periodic interest (coupon).

Key features:

Considered low-risk instruments.
Attractive for conservative investors.
Widely used by banks and institutions.

Exchange-Traded Funds (ETFs)

ETFs are investment funds traded on the stock exchange like shares:

Track a specific index (e.g., EGX30).
Provide instant diversification.
Lower fees compared to mutual funds.
Can be bought/sold during trading hours.

In Egypt, ETF offerings are still developing but represent a growing segment.

Global Depositary Receipts (GDRs)

GDRs allow Egyptian companies to raise capital internationally:

Traded on foreign exchanges (e.g., London Stock Exchange).
Represent shares in Egyptian companies.
Allow foreign investors to invest without dealing directly with local market restrictions.
Also provide Egyptian companies with access to global liquidity.

The Main Instruments in the Egyptian Market are:

Listed Shares: Represent ownership in companies listed on the EGX. Subject to supply/demand, economic conditions, and company performance. Categories include:

Blue-chip stocks (large, stable companies).
Mid- and small-cap stocks.

Corporate Bonds: Debt instruments issued by companies. Investors lend money to the company in return for:

Fixed or variable interest payments.
Typically higher returns than government bonds (but higher risk – credit risk).

Treasury Bills and Treasury Bonds: Backbone of the fixed-income market. Highly liquid and widely traded. Used by banks. institutional investors, and, increasingly, individual investors.

Mutual Funds: Available through banks and asset management companies. Regulated by the Financial Regulatory Authority (FRA). Provide access to diversified portfolios without requiring deep expertise.

Exchange-Traded Funds (ETFs): Combine features of stocks and mutual funds. Transparent pricing and high liquidity. Still limited in Egypt but expected to expand.

5. How are public and private investments regulated by law?

Private Investment

Governed by Investment Law No. 72 of 2017. Provides guarantees such as:

Equal treatment between local and foreign investors.
Protection against nationalization or confiscation.
Freedom to transfer profits abroad.

Public Investment

Governed by:

Public Finance and Budget laws.
Public Procurement Law No. 182 of 2018.
Involves state-owned entities and public-private partnerships (PPPs).

6. What should a non-resident stipulate when investing in securities?

A non-resident investor should ensure:

Clear repatriation mechanisms for dividends and capital gains.
Compliance with foreign currency regulations.
Custody arrangements with licensed custodian banks.
Tax treatment and avoidance of double taxation (if applicable).
Protection under applicable bilateral investment treaties (BITs).

7. Is it possible to relocate business from other jurisdictions to your country?

Business relocation to Egypt is legally permitted.

Legal Framework

Investment Law No. 72 of 2017 allows:

Establishment of new companies.
Redomiciliation through incorporation or asset transfer.

Free Zones and Investment Zones offer incentives for relocating businesses.

Common Methods:

Incorporating a new Egyptian entity.
Asset transfer agreements.
Share acquisition in an existing Egyptian company.

About the Contributor

Osama Badr, Strategic Legal Advisor

Osama Badr is a Strategic Legal Advisor with expertise in international arbitration and real estate development. Currently In-House Legal Counsel at Leoni Wiring Systems Egypt, overseeing legal operations, compliance, and complex contracts.

Holds an LL.M in International Commercial Law from Ain Shams University. Played a key role in shaping Egypt's new Labor Law as an employer representative. Known for guiding companies to maintain legal compliance and manage major legal risks effectively.

Cairo

+201555125266

Venture capital

Mahana & Co.

Ahmed Mahanna
Partner

Abdallah Mahanna
Junior Associate

Where should a foreign investor start a startup project in your country? What should be considered first of all? What legal form should be chosen?
How are venture capital funds regulated?
How is funding for startup projects raised?
What are the specifics of structuring venture deals in the country?
How is Intellectual Property (IP) Protected?

1. Where should a foreign investor start a startup project in Egypt? What should be considered first of all? What legal form should be chosen?

A foreign investor should begin with a feasibility and regulatory assessment of the intended activity, including licensing requirements, foreign ownership restrictions (if any), tax implications, and sector-specific regulations. The investor should also assess whether the project qualifies for incentives under the Investment Law No. 72 of 2017.

The first considerations typically include:

The nature of the business activity and whether it is regulated.
Capital requirements.
Shareholding structure and governance.
Tax planning and repatriation of profits.
Compliance with competition, data protection, and sectoral laws.

The most commonly chosen legal forms for startups are:

Limited Liability Company (LLC): The most practical and flexible form for early-stage ventures.
Joint Stock Company (JSC): Preferred for larger ventures, fundraising rounds, or potential IPO plans.
One Person Company (OPC): Suitable for single founders seeking limited liability.

In most startup cases, an LLC is the preferred vehicle due to its flexibility, limited liability protection, and simplified governance structure.

2. How are venture capital funds regulated?

Venture capital funds in Egypt are regulated primarily by the Financial Regulatory Authority (FRA). They may be structured as:

Closed-end investment funds.
Private equity or venture capital funds established under the Capital Market Law No. 95 of 1992 and its amendments.

Fund managers must be licensed by the FRA, and the fund must comply with disclosure, governance, and reporting requirements. Foreign venture capital funds investing in Egypt must also comply with foreign exchange and investment regulations.

3. How is funding for startup projects raised?

Startup funding in Egypt is typically raised through:

Founders' capital contributions.
Angel investors.
Venture capital funds.
Private equity investments (for growth-stage companies).
Convertible instruments (such as convertible notes).
Strategic investors and corporate venture arms.
Bank financing (less common at early stages).
Government-backed initiatives and incubator programs.

Equity financing remains the dominant funding method, particularly in early and growth stages.

4. What are the specifics of structuring venture deals in Egypt?

Venture deals are commonly structured through share subscriptions or capital increases rather than secondary share transfers.

Key structuring elements include:

Shareholders' agreements regulating governance, exit rights, and minority protections.
Reserved matters requiring investor approval.
Liquidation preference clauses.
Anti-dilution protection.
Drag-along and tag-along rights.
Vesting arrangements for founders.
Exit mechanisms (trade sale, IPO, or buyback).

Convertible notes and SAFE-like structures are increasingly used but must be carefully structured to comply with corporate and capital market regulations. Proper documentation and regulatory compliance are critical to ensure enforceability under Egyptian law.

5. How is Intellectual Property (IP) protected?

Intellectual Property protection in Egypt is governed by IP Law No. 82 of 2002.

IP protection includes:

Trademarks: Registration with the Egyptian Trademark Office grants exclusive protection.
Patents: Protection for inventions upon registration.
Copyright: Automatic protection upon creation, with optional registration for evidentiary purposes.
Industrial designs and utility models.
Trade secrets: Protected under unfair competition principles.

Egypt is a member of major international IP conventions, which facilitates international protection mechanisms. For startups, early registration of trademarks and proper contractual assignment of IP from founders, employees, and developers are essential to secure ownership and investment readiness.

About the firm

Mahana & Co.

Mahana & Co. is a leading Egyptian law firm renowned for its seamless, integrated approach to navigating Egypt’s complex legal landscape, offering expertise built on more than 20 years of experience. With senior attorneys serving as dedicated local contacts and backed by a regional support team, the firm ensures efficient, high‑quality service tailored to each client’s needs. This collaborative model enables Mahana & Co. to deliver exceptional results while optimizing costs and maintaining a strong client focus.

Cairo

+20224501935

Real estate

Osama Badr
Strategic Legal Advisor

What are the requirements of your country's legislation for the purchase and sale of real estate by non-residents? Are there any differences if the transaction is concluded on behalf of a company or a private person?
Can a non-resident become the owner of a real estate object in the country? How is the registration of rights to the real estate object carried out?
In case a non-resident plans to build an object, what should be stipulated? How is the construction industry regulated by law in case of participation of non-residents in projects? Private individuals or companies?
What should be stipulated when concluding construction contracts? Are there any unified forms accepted in the country?
What real estate taxes should be paid by companies or individuals (when buying/owning a property)?
If a non-resident plans to file a real estate object, what is the tax burden? How many years is it necessary to own a real estate object to reduce the tax burden (if there is such a practice)?

1. What are the requirements of your country's legislation for the purchase and sale of real estate by non-residents? Are there any differences if the transaction is concluded on behalf of a company or a private person?

All nationalities can generally purchase and sell properties in Egypt, and there will be no difference if the seller/buyer is a person or a company. A foreigner must obtain security clearances if purchasing in special areas of the country (strategic areas) like Sinai, border areas. Also, if the foreigner is buying deserted lands for reclamation, he/she must obtain some permissions.

2. Can a non-resident become the owner of a real estate object in the country? How is the registration of rights to the real estate object carried out?

Egyptian law permits non-residents to own real estate, subject to specific restrictions and approvals under Law No. 230 of 1996 and the legal framework governing property-based residency. The registration process is as follows:

Verify the legal title of the property.
Obtain government approval if the property is in a restricted area, including security checks.
Notarize the sale/purchase contract.
Submit the notarized contract to the Real Estate Publicity Office with ID, ownership documents, property plans, and proof of fees and taxes.
Pay registration fees.
Final registration grants full legal ownership rights.

The legal effects of registration:

Grants legal ownership and the right to dispose of the property.
Protects against third-party claims.
Unregistered contracts create only personal obligations and do not transfer ownership.

3. In case a non-resident plans to build an object, what should be stipulated? How is the construction industry regulated by law in case of participation of non-residents in projects? Private individuals or companies?

The land must be legally owned, leased, or officially allocated. Ownership is prohibited in strategic areas. Construction can be residential, commercial, industrial, or tourist. Individuals are generally limited to residential construction; commercial or investment projects usually require an Egyptian company or investment license. Building permits must be obtained, and construction must comply with urban planning regulations, safety standards, and environmental requirements. Construction must be completed within a specific period (typically 3–5 years), with penalties for delays.

The construction industry is regulated by Law No. 119/2008, but this law is concerned with the construction process in its essence. Nowadays, there's a new bill of law under discussion to regulate the real estate developing industry.

4. What should be stipulated when concluding construction contracts? Are there any unified forms accepted in the country?

There are no unified forms for construction contracts; they differ according to the project, the area and whether this project is personally owned or is made for sale or lease afterwards.

5. What real estate taxes should be paid by companies or individuals (when buying/owning a property)?

In general, a seller of a plot of land pays 2.5% taxes called taxes of disposal, then if the buyer is going to construct a house or a villa for personal use, there are no taxes. But if the building is for commercial use, then when selling units in this building, taxes will be imposed of up to 22% as a commercial project.

6. If a non-resident plans to file a real estate object, what is the tax burden? How many years is it necessary to own a real estate object to reduce the tax burden (if there is such a practice)?

As mentioned earlier, the purchasing party does not pay taxes on disposal, but there is another type of taxes which is the taxes for ownership which is a very small amount and if this building's value is up to 5 million Egyptian pounds and it's for personal use and it's the only property for the person, it will be exempted from any taxes of ownership.

About the Contributor

Osama Badr, Strategic Legal Advisor

Cairo

+201555125266

Labor and migration law

Marghany Advocates

Amir Marghany
Managing Partner

Rasha El Sakka
Partner

Aya Hossam
Associate

How can a foreign citizen obtain a work permit? What is required for this?
How is the relationship-labor contract between the local company and foreign employees formalized?
Are there any restrictions on the hiring of local staff by a non-resident company?
What should a foreign employer consider when structuring a relationship with local employees? Are there any specifics of employment contracts? What are the nuances?
What compensation and benefits, payments and remuneration of employees are accepted in your country?
What does the employer usually pay besides wages (tax payments, insurance payments, pension plans, insurance)? What compulsory contributions are made to various funds?
How influential are labor unions in your country? How are the employer's relations with trade union organizations regulated in practice?
How and on what grounds can an employee be dismissed? What benefits are payable to the employee in case of different forms of dismissal?

1. How can a foreign citizen obtain a work permit? What is required for this?

As per Labor Law No. 14/2025, no foreign citizen may work in Egypt unless they first obtain a work permit issued by the Ministry of Labour and hold a valid entry and residency permit granted for employment purposes. Accordingly, employers are prohibited from engaging any foreign citizen who has not obtained the required work permit.

The employer must submit all required documentation to the competent authorities and comply with the conditions and procedural requirements stipulated under the Labor Law and its relevant regulations.

Required Documents for Obtaining a Work Permit

The Ministry of Labor may update or amend the required documents periodically. Moreover, additional documents may be required depending on the foreign citizen's position, profession, or sector-specific regulations.

The main documents currently required include:

General power of attorney for the representative or bank-approved authorization if the representative's name appears on the S2 insurance form.
Copy of the company's commercial register, tax card, articles of association (with amendments), and register of exporters/suppliers (original for review).
Copy and original of social insurance records for Egyptians for the current year, ensuring foreigners do not exceed 10% of Egyptians, with completed S2 form (with all signatures and seals) and insurance stamp.
Copy and original of the foreigner's experience certificate for no less than 3 years, approved/notarized by the Ministry of Foreign Affairs, translated by an approved office, and matching the required profession.
Copy and original of letter appointing two Egyptian assistants from company employees, with copies of their qualifications.
Copy and original of the most recent list of foreign employees, or declaration of no foreign employees for first-time applications.
Copy and original of employment contract authenticated by the foreign country's Foreign Ministry and Egyptian Consulate (approved by Egyptian Ministry of Foreign Affairs), plus a manager's letter with bank guarantee for employee's return (for Southeast Asia/Africa employees).
Copy of passport.
Security approval and payment of 5,200 EGP for the first year (original receipt).
For recruitment exemption, add 15,200 EGP exemption fee to the annual fee.

2. How is the employment contract between the local company and foreign employees formalized?

The employment relationship between a local company in Egypt and a foreign employee is formalized through procedures mandated by the Labor Law, its Executive Regulations, and decrees regulating the employment of foreign workers.

These procedures ensure lawful contract conclusion and mandatory approvals, including work permit and residency (if working at company premises/branch/headquarters).

First: Execution of a written Employment Contract

The local company shall conclude a written employment contract with the foreign employee (prerequisite for work permit and residency).

Main mandatory rules per Labor Law: if a definite-term contract expires and the employee continues working, it becomes indefinite.

Mandatory Elements of the Employment Contract:

Commencement date.
Company name and headquarters address.
Employee name, qualifications, profession, insurance number, residence, identity proof.
Nature/type of work.
Agreed salary, payment method/date, all monetary/in-kind benefits.

Language of Employment Contract:

Arabic in 4 copies: company keeps one, employee gets one, one to social insurance office, one to administrative authority.
Dual-language (Arabic + employee's language) if the employee doesn't speak Arabic; Arabic prevails in disputes.

Probation Period: Not exceeding 3 months.

Termination:

Definite contract (more than 5 years): Employee notifies 3 months prior; company pays 1 month's salary per year if terminating. For definite contracts less than 5 years period, there is a freedom of contracting depends on the preliminary agreement between both parties.
Indefinite contract: Either party notifies 3 months prior.

Second: Obtain the Work Permit
Mandatory one-year permit (renewable), applied via Minister of Labor with required documents. Additional requirements possible for managerial/technical roles.

Third: Obtain the Residency
Post-work permit, employee obtains residency from the Ministry of Labor (same duration, renewed concurrently), supported by company documents.

3. Are there any restrictions on the hiring of local staff by a non-resident company?

A non-resident company may engage local staff in Egypt under two main scenarios: I) Through establishing a branch or representative office; or II) Through contracting employees via a local agent or intermediary (Employer of Record - EOR).

Egyptian law does not prohibit non-resident companies from hiring local employees; however, the structure used determines the scope of legal, social insurance, and tax obligations.

First: Branch or Representative Offices

In the event that a foreign entrepreneur owns a company that has a local commercial agent may set up a representative office that is exempt from income tax, contingent upon the said representative office restricting its activities to investigating the possibility of production (market research and feasibility studies) in Egypt; meanwhile, such a company may register a branch office to carry out a contract that it has to perform in Egypt.

Additionally, the branch or representative offices shall comply with all mandatory rules under provisions of the Labor Law (Labor Law No. 14/2025) that govern the employment relationship between the local employee and the non-resident company, including but not limited to the following:

Mandatory elements of the employment contract.
Language of employment contract (Arabic required).
Probation period (up to 3 months).
Termination.
Penalties.

Furthermore, the branch or representative offices shall open a Company File and comply with all rules stipulated under the Social Insurance Law No. 148/2019.

Finally, in practical terms, the branch or representative offices will be treated as a company in regard to all obligations related to incorporation, employment, and taxation.

Second: Local Agent or Intermediary (Employer of Record - EOR)

Labor Law stipulates (Under the Labor Law) non-traditional employment forms, regardless of the form or manner of performing the job, include: I) Remote work; II) Part-time work; III) Flexible work; IV) Job sharing; and V) Any other forms of work which may be defined by a decision of the competent minister.

Additionally, remote work is defined as where the work is performed away from the traditional headquarters of the non-resident company (employer), typically through technological means.

Therefore, the non-resident company shall comply with all mandatory rules under Egyptian law, regulations, and decrees.

No specific prohibition: There is no rule forbidding a non-resident company from contracting local employees; rather, the main issue is ensuring local rules are observed. Indeed, according to the Labor Law, the non-resident company would have the same employer obligations toward the local employee as any local employer.
Social Insurance Obligations: The non-resident company may use a local agent or intermediary (Employer-of-Record, or EOR), which is a registered Egyptian company that formally hires the employees and can register the staff at the National Authority for Social Insurance (NASI) and pay the required contributions on behalf of the non-resident company.

4. What should a foreign employer consider when structuring a relationship with local employees? Are there any specifics of employment contracts? What are the nuances?

First: Legal Basis

Under Egyptian law, the concept of a "foreign employer" does not exist. If a foreign company hiring local employees is established and operates abroad, Egyptian law does not apply. Please, clarify, because below info sounds like Egyptian law (e.g., social insurance) applies to all Egyptian workers, even if the company operates abroad However, if the company is established in accordance with Egyptian laws and operates in Egypt, even if it is 100% owned by foreigners, the Egyptian Labor Law (Labor Law No. 14/2025) will apply to its employment relationships.

Additionally, the employment contract is primarily governed by the Labor Law; therefore, the Egyptian entity shall comply with all relevant laws, regulations, and decrees concerning its relationships with local employees, including but not limited to the following:

Disabilities Persons Rights Law No. 10 of 2018 (Law No. 10 of 2018 on the Rights of Persons with Disabilities). The Egyptian entity with twenty 20 or more employees must employ at least 5% of its workforce from registered disabled individuals and shall notify the competent authority.
Social Insurance and Pensions Law No. 148 of 2019 (Law No. 148 of 2019) (the "Social Insurance Law"):

Social Insurance: Compulsory social insurance for local employees working in the private sector. Furthermore, the Egyptian entity shall deduct the local employee's share from their salary and remit both contributions to the National Organization for Social Insurance every month.
Pensions: Local employees who reach retirement age and have contributed to social insurance for at least 120 months shall be entitled to a pension.

Second: Employment Contract Specifics

As stipulated above, employment contracts are subject to mandatory rules, which the Egyptian entity shall fully comply with, in addition to all regulatory requirements issued by all relevant competent authorities.

Additionally, employment contracts shall be clear, compliant, and flexible enough to accommodate both legal requirements and practical business needs, while also aligning with work permits, social insurance obligations, and employee-friendly termination rules.

Finally, the Egyptian entity shall take into consideration the following additional rules:

Working Hours & Overtime: The working hours should be standard at 8 hours per day, 48 hours per week.

Additionally, overtime requires a notification to the competent administrative authority, and the Egyptian entity shall pay 35% of the hourly salary if the employee works overtime during the day and 70% percent of the hourly salary in the event that the employee works overtime at night.

Furthermore, the availability of the employee at the premises or headquarters of the Egyptian entity shall not exceed 12 hours.

Finally, there are some exceptions to this general rule, defining the cases or jobs that require continuous work without a break period and the strenuous and exhausting jobs in which employees are given rest periods that are counted as actual working hours.

Annual Leave: The local employee is entitled to paid annual leave, excluding public holidays, official holidays, and weekly rest days, as follows: I) 15 days in his/her first year; II) 21 days from his/her second year onwards; III) 33 days for those who have completed ten full years with the Egyptian entity or more, or who are over 50 years of age; IV) 45 days for individuals with disabilities and those of short stature.

Furthermore, in the event that the employment duration of the employee is less than 1 year, the annual leave shall be measured as per such duration (proportionally) provided that such duration is a minimum equal to 6 months.

Pilgrimage & Jerusalem visit: A local employee who has spent 5 consecutive years in the service of the Egyptian entity has the right to leave with full pay for a period of 1 month to perform the Hajj or visit Jerusalem, and this leave is only once throughout his employment period.
Impact of Termination Notice on the Employment Contract: The employment contract shall remain valid throughout the notice period, and both the Egyptian entity and the local employee shall be bound to implement all the obligations arising therefrom. The employment contract shall expire upon the expiration of this period.

Third: Nuances for the Egyptian entity

Salary Currency: Salary and other amounts due to the employee shall be paid in the lawful tender (Egyptian Pounds - EGP).
Goods & Services provided by Egyptian entities: Employers cannot force employees to buy goods or services provided by the employer.
Transfer of Employee (Monthly salary category): The employer shall not transfer the employee with a monthly salary to the category of daily employees or employees appointed for a weekly or hourly salary or by production, except with the employee's prior approval, and in such case the employee shall have all the rights he acquired during the period they he/she spent with the monthly salary.
Work & Penalties Bylaws: The Egyptian entity shall establish bylaws, clarifying the rules for organizing work and disciplinary penalties. The said bylaws shall be endorsed by the competent administrative authority and placed in a conspicuous place inside the Egyptian entity. The act for which the local employee may be disciplined shall be related to the work. No disciplinary penalty may be imposed on the local employee after the expiration of 30 days from the date of completion of the investigation into the violation.

5. What compensation and benefits, payments and remuneration of employees are accepted in your country?

In Egypt, employee compensation and benefits are governed primarily by the Labor Law No. 14/2025 and the Social Insurance and Pensions Law No. 148 of 2019. The following outlines all forms of remuneration, accepted payments, and benefits that employers may provide to employees in Egypt.

First: Salary

As per the Labor Law, salary encompasses everything an employee receives in consideration for performing work, whether in cash or in kind, and whether fixed or variable. It includes the following:

Basic Salary

The base salary specified in the employment contract, including any fixed allowances stipulated therein.

Variable Salary

All additional payments granted to the employee beyond the basic salary, in particular:

Commission or Percentage: A monetary amount paid based on production, sales, or collections achieved by the employee.
Bonuses: A fixed sum or percentage awarded to address economic, social, or technical circumstances, unless expressly incorporated into the basic salary.
Grants: Payments in excess of the basic salary, as stipulated under individual or collective employment contracts, company bylaws, or customary practices.
Rewards: Cash or in-kind payments in recognition of excellence, distinction, or reward for performing assigned tasks.
Allowances: Amounts paid to the employee in consideration of specific circumstances or risks encountered in the performance of their work.
Employee Profit Share: The portion of net profits distributed to employees in accordance with the applicable laws and internal policies.
Gift: Payments granted from a source other than the employer, if customary, and governed by regulations that allow for its determination according to the establishment's bylaws or prevailing custom.
Service Fees: The monetary amount that customers may pay at tourist and hotel establishments, and other similar establishments. Furthermore, a decision is issued by the relevant minister, in agreement with the ministers concerned, the relevant trade union, and employers' organizations, regarding how this amount is to be distributed among employees.
In-Kind Benefits: Non-monetary benefits that the employer is obligated to provide (except those required by the nature of the work).

Second: Insurance Salary

The insurance salary is the salary on which social insurance contributions are calculated under the Social Insurance Law. This consists of a fixed and variable component, subject to statutory minimum and maximum limits.

Third: Benefits

Generally, the benefits that the employer may provide to their employees shall comply with and not contradict the public interest and order. Therefore, the employer may incorporate the benefits into employment contracts, policies, or company bylaws.

Additionally, the benefits fall into two categories: I) Cash benefits; and II) In-Kind benefits, which are stipulated under the provisions of the Labor Law.

Furthermore, the Labor Law stipulate several mandatory cash and in-kind benefits for the employees, such as the following:

Annual Salary Increase

Employees are entitled to a minimum of 3% percent annual raise on their insurance salary.

Leaves

There are several types of paid leave, as follows:

Annual Leave: As stated earlier in this Guide.
Casual Leave: An employee may discontinue work for an accidental reason for a period not exceeding 7 days during the year, with a maximum of 2 days at a time. Such a casual leave is deducted from the annual leave credit.
Sick Leave: An employee has the right to sick leave determined by the competent medical authority, during which the employee is entitled to salary compensation in accordance with what is determined by the Social Insurance and Pensions Law.
Public & official Holidays Leave: This kind of leave shall be determined by decree from the competent minister.
Maternity Leave: A female employee shall be entitled to maternity leave for a period of 4 months, including the period preceding and following childbirth.
Childcare Leave: Female employees in a company that employs 50 employees or more shall have the right to obtain leave without pay for a period not exceeding 2 years in order to take care of their child, and they shall not be entitled to such leave more than 3 times throughout their period of employment.

End of Service

The following types of payments are provided:

Definite Employment Contract: In the event that the employment contract is concluded or renewed for a period exceeding 5 years, the employer may terminate it, but shall pay the employee a bonus equivalent to 1 month's salary for each year of employment. For definite contracts less than 5 years period, the reparation depends on the clauses of the contract.
Indefinite Employment Contract: In the event that the employer terminates the employment contract without giving prior notification to the employee, the employee is entitled to the salary for such notice period. Additionally, in the event that the employer terminates the employment contract without a lawful reason, the employee is entitled to compensation of not less than 2 months' salary for each year of his/her period of employment, and the remainder of all rights.

Fourth: Payment

In accordance with the Labor Law, employers shall pay employees their salaries through lawful and transparent payment methods.

Payment Methods

Payments may be made through the following methods:

In cash, against the employee's signed acknowledgment.
By bank transfer, to an account designated by the employee.
Through any other legally recognized electronic payment method, provided that the employee receives a payslip or written statement indicating the payment details.

Therefore, employers shall maintain clear payroll records demonstrating the date, amount, and method of payment, in accordance with statutory record-keeping obligations.

Timing of Payments

Employers are required to pay employees regularly and punctually, as follows:

Monthly Payment: Employees working on a monthly salary basis shall be paid at least once per month.
Workers Paid on a Daily or Weekly Basis: These employees shall be paid at least every week, unless a shorter period is specified in the employment contract.
Overtime Payments: Any overtime hours shall be compensated at the legally prescribed premium rates, depending on whether the work is performed during daytime, nighttime, weekly rest days, or official holidays. Furthermore, the overtime payments shall be made together with the monthly salary unless otherwise agreed in writing.

Deductions: No deductions may be made from the employee's salary except as expressly permitted by law, and within the statutory limits provided under the Labor Law.

Payslips and Transparency

For every salary payment, the employer shall issue a written or electronic payslip showing at a minimum:

Basic salary.
Variable salary components.
Allowances and benefits.
Deductions.
Social insurance contributions.
Net salary paid.

This ensures compliance, transparency, and traceability of all employee remuneration.

6. What does the employer usually pay besides wages (tax payments, insurance payments, pension plans, insurance)? What compulsory contributions are made to various funds?

First: Insurance Payments

Social Insurance

As per the provisions of the Social Insurance Law No. 148 of 2019, all employees, employers, and individuals in similar positions, Egyptian employees working abroad, and casual employees are subject to mandatory social insurance coverage. Additionally, the employer shall open a social insurance file for the company (the "Company File") and register all the managers of their company and employees under the Company File, and all administrative procedures related to the social insurance shall be undertaken before the National Organization for Social Insurance (NOSI).

Furthermore, the minimum employee's social insurance subscription salary shall be 2,700 EGP and with a maximum of 16,700 EGP, based on the employee's basic salary, which includes the following:

Old-age, disability, and death insurance.
Work injury insurance.
Sickness insurance.
Unemployment insurance.

Such salary shall be contributed between the employer and the employee, as follows:

Old-age, Disability, & Death Insurance: Employers shall contribute at a ratio of 12% of the employee’s monthly salary, and the employee shall contribute at a ratio of 9% of his/her monthly salary.
Work Injury Insurance: Employers shall pay a monthly subscription with an amount of 1% of the insurance subscription salary for his/her employees who are not governed by the provisions of the Medical Insurance System Law No. 2 of 2018, in contrary, the employer shall pay a monthly subscription with an amount of 0.5% of the insurance subscription salary for his/her employees equivalent to NOSI's financial obligation (for employees covered under the Health Insurance Law). Additionally, the employer shall pay the investment proceeds from the aforementioned subscriptions.
Sickness Insurance: Employers shall contribute at a rate of 3% of the employee’s monthly salary for employees belonging to general private‑sector employees and agricultural employees, and at a rate of 3.25% of the employee’s monthly salary for employees belonging to public sector employees, public economic sector employees, and employees in specified special sectors, as set out in Social Insurance and Pensions Law No. 148 of 2019. The employee shall contribute at a rate of 1% of his or her monthly salary.
Unemployment Insurance: Employers shall pay 1% of the employee's monthly salary. There are some excluded types of employees as stipulated under the Social Insurance Law.

Pension

The following categories have the right to take a pension (personally or pension paid to heirs/family in case of death):

Reaching retirement age with a minimum of 120 actual months until the end of 2024 (180 months starting from 2025) of subscription to the old-age, disability, and death insurance coverage.
Termination of the employee's employment due to death, total disability, or permanent partial disability.
Total disability or death during employment.
Death (pension paid to heirs/family) or total disability 1 year after the termination of the employee's employment, work, or activity, provided that their insurance subscription period meets the statutory minimum for disability/death pensions.
Termination of the service, employment, and activity of the employee in cases not for reaching old-age, disability, or death insurance, and satisfying certain conditions.

Additionally, for Disability or Death pensions only, the employee must have a subscription period of not less than 3 consecutive months or 6 separate months, subject to limited statutory exceptions. This minimum does not apply to old-age pensions.

Finally, pension-related payments are not a separate employer obligation; they are funded through the social insurance contribution categories described above. Employers are not required to make additional pension payments outside the statutory contributions.

Second: Tax Payments

Income Tax

Individuals are subject to Egyptian income tax on their net income derived in Egypt, in accordance with the Egyptian Income Tax Law No. 91 of 2005 and its amendments (including Law No. 26 of 2020 and subsequent amendments).

The applicable progressive tax rates on the annual net taxable income are as follows:

From 1 to 40,000 EGP – 0%.
Exceeding 40,000 up to 55,000 EGP – 10%.
Exceeding 55,000 up to 70,000 EGP – 15%.
Exceeding 70,000 up to 200,000 EGP – 20%.
Exceeding 200,000 up to 400,000 EGP – 22.5%.
Exceeding 400,000 up to 1,200,000 EGP – 25%.
Exceeding 1,200,000 EGP – 27.5%.

For individuals whose total annual net income exceeds the thresholds of 600,000 EGP, 700,000 EGP, 800,000 EGP, 900,000 EGP and 1,000,000 EGP, the application of the lower brackets is restricted in accordance with the Income Tax Law and its amendments, which increases the effective tax rate for higher‑income taxpayers.

Corporate Tax

Corporations are subject to a corporate tax at a rate of 22.5% on net profits.

Furthermore, the capital gains resulting from dealing in securities listed on the Egyptian Stock Exchange sourced in Egypt are subject to a tax at a rate of 10% of the net capital gains without deducting any costs.

Dividends Tax

Individuals residing in Egypt are subject to dividends tax on dividends on stocks and shares from Egyptian companies as follows:

At a rate of 10% without deducting any costs on dividends made from a source in Egypt during one year.
At a rate of 5% on dividends made from a source in Egypt during one year, in the event that the securities are listed on the Egyptian Stock Exchange.
At a rate of 5% on dividends obtained by holders of documents in investment funds.

Exemption: Dividends made in the form of free shares, whether those dividends are made in Egypt or abroad, and regardless of the form in which the dividend is made.

Finally, withholding tax is applied at source, after which dividends are fully excluded from the individual's income tax base; deduction of related costs applies only to other income types.

Capital Gains Tax

Legal and natural individuals are subject to capital gains tax at a rate of 10% on profits from the disposal of securities or shares in companies listed on the Egyptian Stock Exchange without deducting any costs.

Furthermore, taxes paid abroad on the dividends or capital gains obtained by a resident individual abroad (in Egypt on foreign-sourced income) shall be deducted from the dividends tax or capital gains tax.

Value-Added Tax ("VAT")

Standard VAT Rate included: I) Goods at a rate of 14%; II) Services at a rate of 14% (as per Law No. 157 of 2025, except for professional and consultancy services which are subject to a 10% schedule tax); and III) Machinery and equipment used in the production of a commodity or the provision of a service at a rate of 5% percent, excluding buses and passenger cars.
Exemptions: I) Goods or services are exported by projects in free zones, cities, markets, and special economic zones to abroad; II) Goods or services listed by those projects are necessary to carry out the licensed activity within the free zones, cities, markets, and special economic zones, excluding passenger cars; and III) Imports for scientific, educational, or cultural purposes by scientific and educational institutes and scientific research institutes may be exempted by a decision of the competent minister.

Furthermore, the tax stipulated in accordance with the tables attached to Value-Added Tax Law No. 67 of 2016 on the sale, performance, or import of goods and services shall be paid.

Finally, Egypt is a member of several double taxation avoidance treaties.

Law No. 6 of 2025

The Egyptian government has enacted Law No. 6 of 2025, which introduces incentives for small and medium-sized projects ("SMEs") with annual transactions not exceeding 20 million EGP. The key provisions of this law include the following:

Exemption from the fee for developing the state's financial resources, the stamp tax, and fees associated with the notarization and authentication of contracts for the incorporation of companies and establishments, and others.
Exemption from capital gains tax derived from the disposal of fixed assets, machinery, or production equipment related to these projects.
Exemption from dividend tax.

Furthermore, the income tax due on such projects is as follows:

0.4% for projects with annual transactions of less than 500,000 EGP.
0.5% for projects with annual transactions of 500,000 EGP and less than 2 million EGP.
0.75% for projects with annual transactions of 2 million EGP and less than 3 million EGP.
1% for projects with annual transactions of 3 million EGP and less than 10 million EGP.
1.5% for projects with annual transactions of 10 million EGP and less than 20 million EGP.

Finally, these incentives aim to foster the growth and development of SMEs in Egypt.

7. How influential are labor unions in your country? How are the employer's relations with trade union organizations regulated in practice?

Regulatory framework: Labor unions in Egypt enjoy a strengthened framework primarily under the provisions of the Law No. 213 of 2017 on Trade Union Organizations and Protection of the Right to Organize and its Executive Regulation (the "Trade Union Organizations Law" or "TUOL"), in addition to the Labor Law.

First: Influence

Under the TUOL

Under the provisions of the TUOL, the unions are formally recognized as representatives of workers in enterprises, sectors, and at the national level through federations such as the Egyptian Trade Union Federation (the "ETUF"). Additionally, the ETUF is the official national federation representing employees in Egypt, which is the largest and historically dominant trade-union federation and umbrella organization to which many enterprise-level and industry-level unions belong. It is also the main body that interacts with the Ministry of Labour on national labor policy matters.

Key areas of influence include:

Representation & Consultation: Union committees are recognized as representative employee bodies through which the employers must participate in workplace consultations, grievance procedures, and health & safety matters.
Dispute Resolution: Unions participate in pre-litigation reconciliation committees before the competent Labor Court. Additionally, the Labor Court may issue reinstatement or compensation in cases of anti-union dismissal.

Under Labor Law

Key areas of influence include:

Protection of Union Activity: Prohibition on union-based discrimination and the formal protection against arbitrary dismissal grant unionized employees a safer status, which enhances union relevance and employee protection. As a result, employers must interact with ETUF-affiliated union committees or employee delegates through collective bargaining, reconciliation committees, workplace consultations, and protections against anti-union discrimination.
Collective Bargaining: The Labor Law expressly allows collective bargaining, which provides a structured mechanism for negotiating wages, working conditions, benefits, and workplace policies.

In practical terms, unions exercise more meaningful influence in large enterprises or historically unionized sectors. Conversely, in many small or private-sector workplaces, low union density, employer resistance, and organizational limitations often reduce the real bargaining power of unions.

Nonetheless, Egyptian labor laws provide employees with an extensive set of statutory rights and protections, irrespective of union coverage.

Second: Relationship with the Trade Union Organizations

Employers must comply with the following obligations:

Recognition of the Trade-Union Committee: In any company where employees form a trade-union committee in accordance with Egyptian law, the employer must recognize such a committee. Additionally, the committee represents employees in: I) Workplace consultations; II) Grievances; III) Negotiations; and IV) Collective issues. If no union exists, employee delegates shall represent the employees in the company.
Collective Bargaining & Collective Agreements: Collective bargaining is legally recognized, which may occur between I) the Employer and the union committee; or II) At a higher level through ETUF. Additionally, any collective agreements shall be filed with the Ministry of Labour to become binding. In practical terms, collective agreements are more common in large companies, public-sector companies, and industries with strong ETUF presence.
Dispute Resolution: This gives the ETUF or the union committee a formal seat at the table before cases are filed before the Labor Court.
Protection of Union Activity: Dismissal due to union activity is unlawful termination; both the ETUF and local union committees can: I) Intervene; II) File complaints; III) Support reinstatement claims; and IV) Challenge anti-union measures. Therefore, these mechanisms reinforce the formal influence of the ETUF and local committees in protecting employees' rights.

8. How and on what grounds can an employee be dismissed? What benefits are payable to the employee in case of different forms of dismissal?

Dismissal is a disciplinary penalty that may only be imposed by the Labor Court. The employer cannot unilaterally dismiss an employee but may request that the Labor Court impose dismissal after completing the legally required internal procedures.

First: How Can an Employee Be Dismissed

Internal Investigation

Before requesting the Labor Court to dismiss an employee, the employer must conduct a lawful internal investigation. The dismissal request cannot be submitted unless:

Employee has been notified in writing of the alleged violation;
Employee has been heard and allowed to present their defense; and
A record of the investigation is kept and placed in their personal file.

Additionally, the investigation, conducted by the company's legal affairs, a qualified individual, or one of the company's employees, shall begin within 7 days of the date of discovery of such violation and shall be completed within 3 months. An extension of up to another three months may be granted in the event that new facts or documents emerge during the investigation. The trade-union organization to which the employee belongs shall assign a representative to attend the investigation.

Finally, in all cases, the dismissal shall be reasoned and justified.

Labor Court

In the event that the investigation establishes that the employee committed a violation warranting dismissal, the employer may submit a formal request to the Labor Court, as it is the only authority empowered to impose dismissal.

During the consideration of the case, the employer may temporarily suspend the employee by written decision, for a period not exceeding 60 days, with payment of the total salary, in the event that the employer requests the Labor Court to dismiss the employee from service.

Additionally, the employer may request urgent matters from the Labor Court to extend the suspension period for one or more additional periods, with payment of one-half salary, provided the request is submitted at least 10 days before the expiration of the current suspension.

Second: On What Grounds Can an Employee Be Dismissed

Dismissal may be imposed by the Labor Court only in cases of gross misconduct, which includes:

Proven impersonation or submission of falsified documents;
Having committed an act that causes serious damage to the employer, provided the employer reports the incident to the authorities within twenty-four (24) hours of learning about it;
Repeated failure to observe safety regulations, despite written warnings, and provided the rules are written and posted visibly;
Disclosure of trade secrets, causing substantial harm to the business;
Competing with the employer's activity;
Being intoxicated or under the influence of drugs during working hours; or
Assaulting the employer, general manager, or a supervisor at or due to work.

In all circumstances, dismissal shall comply with the provisions of the Labor Law.

Third: Benefits

Labor Court Procedures & Compensation: In the event that the Labor Court schedules a hearing within 20 days from the date of the request and notifies both employer and employee. Moreover, the Labor Court shall issue an urgent decision within 3 months from the first hearing. Additionally, if, based on the documents submitted, the Labor Court finds merit in the employee's claim, the employer may be ordered to pay the employee the equivalent of his/her salary from the date of dismissal, up to a maximum of 6 months. This ruling shall be final. Furthermore, any amounts previously received by the employee under the competent labor court orders shall be deducted from any compensation awarded or other dues.
Special Protection for Union Activity: In the event that the dismissal was due to union activity, the Labor Court shall order reinstatement upon the employee's request.

It’s worth noting that the Egyptian government is increasing minimum wages many times to face high inflation rates effects, thus amounts of minimum wages, maximum wages, pensions and social security are to the most recent update at the time of writing this article.

About the firm

Marghany Advocates

Marghany Advocates was established in 1987 by Professor Dr. Mohamed Marghany, one of the most renowned professors of public law in the Arab world.

Professor Marghany has taught law since 1968 in Egypt, Morocco, and France. His expertise as a scholar was called upon in many countries around the world, as he was the first to write the Arabic principles of Moroccan administrative law and was the author of the first Palestinian constitution, as well as the new constitutions of Yemen and the Kingdom of Bahrain. Professor Marghany’s legal practice was no less successful by any means and is considered to be one of the top administrative law practices in Egypt.

Our Practice Areas: Competition & Antitrust, Compliance Assessments, Litigation, White-Collar Crimes, M&As (Mergers & Acquisitions), Telecom and ICT, Privacy Policies, Copyright, Dispute Resolution, Licensing, Company Establishment, Commercial Agencies & Distributorships, Tax & Labor, International Dispute Resolution, Start-Up Support, Local & International Commercial Disputes (including foreign courts litigation).

Cairo

+20222690794/5

Intellectual property protection

Marghany Advocates

Amir Marghany
Managing Partner

Rasha El Sakka
Partner

Aya Hossam
Associate

What government agencies are responsible for IP administration and enforcement?
What are the principal statutes and international treaties?
How are trademarks protected and registered?
How are patents, utility models and industrial designs protected?
How are other IP objects protected?
How is copyright protected?
What is protected by copyright in Egypt?
Do I need to register copyrights?
Who owns the rights when entering into a service contract: the customer or the contractor?
Who owns the rights in labor relations: the employee or the employer?
Are there specific rules for software, databases and AI?
How are trade secrets (“undisclosed information”) protected?
Practical considerations for foreign companies

1. What government agencies are responsible for IP administration and enforcement?

First: Intellectual Property Administration Authorities

Intellectual property ("IP") in Egypt is administered through a structured legal and institutional framework, centralized under the recently established national authority. The main offices and authorities responsible for handling IP matters include the following:

Egyptian Intellectual Property Authority (EGIPA)

Under the National Intellectual Property Strategy ("NIPS"), Egypt issued Law No. 163 of 2023 establishing EGIPA, which is the sole de jure authority for preparing and updating NIPS, and developing the necessary executive mechanisms to activate and monitor its implementation, in cooperation with the relevant ministries and authorities.

Additionally, EGIPA governs the registering, recording, depositing, and granting of protection documents for IP rights as specified in the Protection of Intellectual Property Rights Law ("IP Law") issued by Law No. 82 of 2002.

Furthermore, EGIPA has absorbed a particular remit from the Egyptian Patent Office ("EGPO") and the Plant Variety Protection Office ("PVPO"), as reflected in Decree No. 138 of 2025 and Decree No. 140 of 2025, under which the EGPO, PVPO, and the Trade Register Department ("TRD") have been consolidated as part of EGIPA.

By the timeline set in NIPS, EGIPA will fully integrate all IP-related offices.

Egyptian Patent Office

The EGPO is affiliated with the Academy of Scientific Research and Technology and the Ministry of Higher Education and Scientific Research, and administers patent, utility model, and layout designs for integrated circuits’ rights in Egypt.

Additionally, as per the IP Law, EGPO is the competent office to receive and process patent, utility model, and layout designs’ applications, maintain their register, examine applications, handle oppositions, grant and register them, and provide public access.

Plant Variety Protection Office

As per Ministerial Decree No. 808 of 2005, the PVPO is established within the Central Administration for Seed Certification at the Agricultural Services and Follow-up Sector at the Ministry of Agriculture.

Additionally, the PVPO is the competent office under the Ministry of Agriculture to receive, examine, and decide on applications for the protection of plant varieties and grant certificates of protection.

Trade Register Department

As per the IP Law, the TRD is the competent department for registration of trademarks, and industrial designs and models under the Internal Trade Development Authority ("ITDA"), which is part of the Ministry of Trade and Industry.

Additionally, the TRD receives and examines applications for new trademarks, and industrial designs and models, maintains the respective registries, and issues registration certificates.

Second: Intellectual Property Enforcement Authorities

IP rights in Egypt are enforced via a combination of judicial and prosecutorial mechanisms. Enforcement authorities ensure that IP owners can effectively address infringements and seek remedies through both civil and criminal procedures.

The main enforcement authorities are as follows:

Council of State Judiciary

The Council of State handles all administrative disputes and disputes related to the implementation of its judgments, and it is also concerned with adjudicating appeals against decisions issued by IP offices and authorities, as stipulated under the IP Law.

Ordinary Judiciary

This judiciary handles all disputes and crimes that are not governed by the Council of State judiciary, which resolves disputes relating to civil, criminal, and commercial matters. Additionally, it includes the Economic Courts, which were established under Law No. 120 of 2008, and are specialized courts that have exclusive jurisdiction over all IP disputes.

Furthermore, the Economic Crimes Division of the Public Prosecution investigates and prosecutes IP-related crimes, often in coordination with police or customs authorities, to enforce IP rights through civil or criminal proceedings.

2. What are the principal statutes and international treaties?

First: Principal Statutes

Egypt has a legal framework governing IP rights, established in accordance with international treaties such as the TRIPS Agreement, the Berne Convention, and agreements under WIPO. The primary legislation governing IP rights is codified in the IP Law, which regulates patents, trademarks, industrial designs, copyright, and related rights.

Additionally, several other key laws form part of the IP legal and regulatory framework, such as:

Law No. 163 of 2023 establishing the Egyptian Intellectual Property Authority.
Law No. 180 of 2018 on Press, Media, and the Supreme Council for Media Regulation.
Law No. 181 of 2018 on Consumer Protection, Law No. 66 of 1963 on Customs law.
Law No. 15 of 2004 on E-signature and the Establishment of the Information Technology Industry Development Authority.
The Commercial Code promulgated by Law No. 17 of 1999.

Furthermore, these laws operate alongside the IP Law to ensure protection and enforcement across various sectors.

Second: International protection

Nationals of all WTO member countries enjoy any advantage, preference, privilege, or immunity granted by any other law to nationals of any state in connection with the rights provided for patents and utility models, trademarks, industrial designs and models, and copyrights, unless such advantage, preference, or immunity derives from:

Agreements on judicial assistance or agreements on law enforcement of a general nature.
Agreements in connection with the protection of IP rights, which came into force prior to 1 January 1995.

Third: International Treaties
Egypt is party to 56 international treaties concerning intellectual property rights. The principal treaties include:

The Trademark Law Treaty, the Nairobi Treaty on the Protection of the Olympic Symbol.
The Paris Convention for the Protection of Industrial Property.
The Berne Convention for the Protection of Literary and Artistic Works.
The TRIPS Agreement.
The Hague Agreement Concerning the International Registration of Industrial Designs.
The International Convention for the Protection of New Varieties of Plants.
The Patent Cooperation Treaty.

Furthermore, Egypt is a member of the Madrid System for International Trademark Registration, administered by WIPO. Egypt joined the Madrid Agreement on 1 July 1952, and the Madrid Protocol on 3 September 2009. This membership allows foreign trademark owners to register their trademarks in Egypt through the Madrid System.

3. How are trademarks protected and registered?

First: What is protectable

Any sign distinguishing goods or services, whether products or services, and including, in particular, names represented in a distinctive manner, signatures, words, letters, numerals, designs, symbols, signposts, stamps, seals, drawings, engravings, a combination of distinctly formed colors and any other combination of these elements if used, or intended to be used, to distinguish the products of a particular industry, agricultural, forestry or mining venture or any goods, or to indicate the origin of products or goods, or their quality, type, category, guarantee, preparation process, or to indicate the provision of any service. In all cases, a trademark shall be a sign that is recognizable by sight.

Furthermore, the owner of a well-known trademark – worldwide and in Egypt – shall have the right to its protection conferred by the IP Law even if such trademark is not registered in Egypt.

Trademarks receive both civil protection under the Civil Code and criminal protection under the IP Law.

Second: Where to apply

Applications must be filed before the TRD.

Third: Duration of protection

Protection is granted for ten (10) years from the date of trademark registration; it may be renewed for an identical period or periods upon request by its owner, and every time within the last year of the protection period, upon payment of the fees due for the initial registration application.

Fourth: Cost

Application fees for registration and all procedures typically range up to EGP 5,000–8,000 per class.

4. How are patents, utility models and industrial designs protected?

First: Patents

What is protectable: Any industrially applicable invention that is new and involves an inventive step, whether it involves new industrial products, new industrial processes, or a new application of known industrial processes. Any modification, improvement, or addition to a previously patented invention that meets the criteria of being new, inventive, and industrially applicable applies to the owner of the modification, improvement, or addition.
Where to apply: File before the EGPO.
Duration of protection: Protection lasts twenty (20) years from the filing date of the application; it is not renewable.
Cost: Application fees start at EGP 150, with substantive examination at up to EGP 17,000–50,000, plus annual fees up to EGP 1,000, expert, and examination expenses.

Second: Utility Models

What is protectable: Any new technical innovation in the structure or composition of devices, tools, equipment, or their components, or products, processes, or means of manufacturing them.
Where to apply: File before the EGPO.
Duration of protection: Protection lasts seven (7) years from the filing date of the application; it is not renewable.
Cost: Application fees start at EGP 100.

Third: Industrial Designs and Models

What is protectable: Any composition of lines or a three-dimensional form, whether or not associated with colors, provided that such composition or form gives it a novel appearance and is industrially applicable.
Where to apply: File before the TRD.
Duration of protection: Protection lasts ten (10) years from the filing date; it may be extended for an additional five (5) years upon application within the last year of the protection period, as prescribed by the Regulations.

5. How are other IP objects protected?

First: Layout Designs for Integrated Circuits

What is protectable: New layout designs for integrated circuits; a layout design shall be considered to be new if it is the result of its creator's own intellectual effort and is not part of the general knowledge common among professionals of the relevant industrial art. Nevertheless, a layout design consisting of elements that are part of the general knowledge common among professionals of the relevant industrial art shall also be considered new, if the combination of its components and their interconnections are in themselves original.
Where to apply: It should be registered before the EGPO.
Duration of protection: It shall be granted protection for ten (10) years from the registration date or its first commercial exploitation in Egypt or abroad, whichever is earlier; meanwhile, the protection shall cease fifteen (15) years from the date of its creation.
Cost: Application fees for registration shall not exceed EGP 1,000.

Second: Plant Varieties

What is protectable: Plant variety is characterized by novelty, distinctness, uniformity, and stability, and it must have a specific denomination.
Where to apply: It should be registered before the PVPO.
Duration of protection: Trees and vines shall be granted protection for twenty-five (25) years from the guaranteed protection date; meanwhile, others shall be granted protection for twenty (20) years, both from the granting of the breeder's right certificate date.
Cost: Application fees for registration shall not exceed EGP 10,000, and the annual fee shall not exceed EGP 2,000.

6. How is copyright protected?

First: Moral Rights

The author and his universal successor shall enjoy perpetual, imprescriptible, and inalienable moral rights over the work. Additionally, such rights shall include the following:

The right to make the work available to the audience for the first time;
The right to claim authorship; and
The right to prevent any modification is considered by the author as a distortion or mutilation of the work.

Second: Financial Rights

It revolves around seven main types:

Author: Financial rights shall be granted protection upon creation for the author's lifetime plus fifty (50) years after his/her death;
Co-authored authors: Financial rights shall be granted protection upon creation for the author's lifetime plus fifty (50) years after the death of the last author;
Authors of Collective works under the juridical entity: Financial rights shall be granted protection upon publishing or availability for an audience, whichever is later, for fifty (50) years;
Applied Artworks Authors: Financial rights shall be granted protection upon publishing or availability for an audience, whichever is later, for twenty-five (25) years;
Performing Artists: Financial rights shall be granted protection upon performance or recording, depending on the circumstances, for fifty (50) years;
Audio Recording Producers: Financial rights shall be granted protection upon recording or publishing, whichever is later, for fifty (50) years; and
Broadcasting organizations: Financial rights shall be granted protection upon the date of the first broadcast of the radio program for twenty (20) years.

7. What is protected by copyright in Egypt?

As per IP Law, any created literary, artistic, or scientific product, whatever its type, mode of expression, significance, or purpose of its creation, particularly the following works:

Books, booklets, articles, bulletins, and any other written works;
Computer programs;
Databases, whether readable by computer or otherwise;
Lectures, speeches, sermons, and any other oral works when recorded;
Dramatic and dramatico‑musical works, and pantomimes;
Musical works with or without words;
Audiovisual works;
Works of architecture;
Works of drawings with lines or colors, sculpture, lithography, printing on textile, and any other similar works of fine arts;
Photographic and similar works;
Works of applied and plastic arts;
Illustrations, maps, sketches, and three-dimensional works relating to geography, topography, or architectural designs; and
Derivative works, without prejudice to the protection prescribed for the works from which they have been derived. Protection shall also cover the title of the work if it is inventive.

8. Do I need to register copyrights?

Copyright registration is not required to grant protection. Additionally, copyright protection arises automatically upon the creation of an original work, without any formalities. The owner of the copyright may register it with the Ministry of Culture of Egypt.

9. Who owns the rights when entering into a service contract: the customer or the contractor?

First: Patents

The employer shall have all the rights derived from the inventions discovered by the contractor during the period of the service contract, insofar as the invention falls within the scope of said contract. On the contrary, the customer shall have all the rights derived from the inventions discovered by the employer during the period of the service contract, insofar as the invention falls within the scope of said contract.

Furthermore, the employer or customer shall apply all the requirements and conditions stipulated under IP Law.

Second: Undisclosed Information

Regularly, the undisclosed information shall belong to the owner who generates that information. Additionally, under the service contract, each party has its own undisclosed information, and the other party shall keep such information secret.

Furthermore, the undisclosed information that is generated or created by both of them, the service contract shall state which party shall have the lawful control of such generated information; otherwise, such information will belong to both of them.

Third: Copyrights & Related Rights

Work: The employer, the employee, or the contractor who is the creator shall be the author and initial copyright owner of any original work produced.
Collective Work: The employer or the customer, under whose direction the collective work was created, shall have alone the right to exercise the author's rights with respect to that work.

Fourth: Trademarks & Industrial Designs and Models

The person who has registered a trademark and has made use of it for a period of five years as of the date of its registration shall be deemed the owner of such a trademark, unless precedence of use by a third party is proven.

Additionally, the industrial designs and models shall be owned by the registered party.

Practically, the service contract shall state that the consumer has the exclusive right to register the trademark or industrial designs and models and shall use it for the above-mentioned specified period.

10. Who owns the rights in labor relations: the employee or the employer?

First: Patent

Egypt does not follow an automatic "work-for-hire" doctrine; on the other hand, patent ownership is regulated in accordance with IP Law. The employer shall have all the rights derived from the inventions discovered by the employee during the period of employment relationship, insofar as the invention falls within the scope of the employment agreement or relationship.

Additionally, the name of the employee shall be mentioned in the patent, and he/she shall be remunerated in all cases. In the event that such remuneration was not agreed on, he/she shall be entitled to fair compensation from the entity.

In cases other than the preceding, where the invention is part of the activities of the public or private establishment to which the employee is attached, the employer shall have the choice either to exploit the invention or to acquire the patent against fair compensation paid to the employee.

In all cases, the invention shall be attributed to the employee.

Second: Other Intellectual Property Types

The employer shall have all the rights derived from other IP types developed, designed, or created by the employee during the period of employment relationship, insofar as such type falls within the scope of the employment agreement or relationship.

Practically, the employment contract shall state that the employer has the exclusive right to such IP type.

11. Are there specific rules for software, databases and AI?

First: Software & Databases

As per IP Law, software and databases fall within the scope of copyright-protected works, as they are categorized as literary and artistic works. Accordingly, all copyright rules and protections stipulated under the IP Law apply equally to software and databases.

Additionally, as per Law No. 15 of 2004 on E-signature and Establishment of the Information Technology Industry Development Authority (the “ITIDA”), ITIDA is the competent authority for submission of all requests for depositing, recording, and registration of original software and databases submitted by entities or individuals publishing, printing, and producing thereof in order to protect copyrights and other rights.

Second: AI

Notwithstanding that Egypt lacks a defined framework for regulating Artificial Intelligence (the “AI”), the following laws are indirectly relevant to AI activities:

Protection of Intellectual Property Rights Law No. 82 of 2002. Governs patents, copyrights, trademarks, and industrial designs, which are essential for protecting inventions, software, and creative works generated by AI.
E-Signature Regulation Law No. 15 of 2004. Establishes a legal framework for electronic signatures and agreements, facilitating AI-driven automation in business transactions.
Anti-Information Technology Crimes Law No. 175 of 2018. Addresses risks associated with information technology crimes, including AI-driven fraud, misinformation, hacking, and other anti-information technology crimes (Cybercrimes).
Personal Data Protection Law No. 151 of 2020. Regulates the collection, processing, and use of personal data, including AI systems that process personal data through methods like facial recognition, targeted advertising, and AI-based decision-making.
Central Bank and Banking System Law No. 194 of 2020. Regulates financial activities, including AI-powered fintech solutions, automated lending, robo-advisors, and fraud detection systems in the banking sector.

12. How are trade secrets (“undisclosed information”) protected?

What is protectable

It revolves around three main types: I) Trade Secrets; II) Confidential Business Information; and III) Technical Know-how. Additionally, the protection shall extend to undisclosed information that involves considerable effort, submitted on request to the competent authorities for marketing of pharmaceutical or agrochemical products, which utilize new chemical components necessary for the tests undertaken to allow such marketing.

Duration of protection

It shall be granted protection in the event that such information is undisclosed by the owner.

How to keep Undisclosed Information granted such protection

In the event that such information is considered confidential, it has a commercial value due to its secrecy, and the owner shall take effective legal and practical steps to maintain confidentiality.

13. Practical considerations for foreign companies

First: Engage with the Correct Authorities Early

For trademarks, industrial designs, and models, applications shall go through TRD.
For patents, utility models, and layout designs, use EGPO.
For plant varieties, register with PVPO.
For software and databases, submissions shall be made to ITIDA.

Tip: Foreign companies shall identify which authority governs their IP type to avoid delays or invalid applications.

Second: Leverage EGIPA for Coordination

EGIPA is gradually consolidating all IP functions in Egypt. Foreign companies shall monitor updates from EGIPA to ensure proper filing, enforcement, and compliance under the NIPS.

Third: Understand Enforcement Pathways

IP enforcement can involve Economic Courts under the Ordinary Judiciary, or Public Prosecution for civil IP disputes and criminal infringement, and the Council of State Judiciary for administrative IP disputes.

Tip: Foreign companies shall retain local counsel familiar with both administrative, civil, and criminal enforcement of IP rights.

Fourth: International Treaties Can Facilitate Protection

Egypt is a party to key treaties like the Paris Convention, Berne Convention, TRIPS, and the Madrid System.

Tip: Foreign companies can register trademarks via the Madrid Protocol for streamlined protection in Egypt.

Fifth: Ownership Clarifications in Contracts

Clearly define IP ownership in service contracts and employment agreements, especially for patents, software, and creative works, as IP Law grants the creator or employee certain rights unless contractually assigned.

Tip: Include explicit IP assignment clauses to ensure the company owns inventions, software, or designs created under employment or service contracts.

Sixth: Protection of Trade Secrets & Confidential Information

Shall take practical steps to maintain secrecy (NDAs, access control, internal policies).

Tip: Foreign companies shall implement internal IP protection policies consistent with Egyptian law to avoid losing trade secret rights.

Seventh: AI, Software, and Emerging Tech

AI-generated works are not explicitly covered under a dedicated AI law, but protections may arise under IP Law, E-signature Law, Cybercrime Law, and Data Protection Law.

Tip: Consider multi-layered protection for AI or software-driven products (copyright, trade secret, contractual safeguards, data compliance).

About the firm

Marghany Advocates

Marghany Advocates was established in 1987 by Professor Dr. Mohamed Marghany, one of the most renowned professors of public law in the Arab world.

Cairo

+20222690794/5

Data protection and privacy

Hegazy and Partners for Strategic Consulting

Mohamed Hegazy
Partner

Main Law Governing the Processing of Personal Data in Egypt, Scope of Application, enforcement status, and key exemptions
Who is the regulator (PDPC), and what are the licensing/registration requirements for controllers, processors, and DPO?
What are the core obligations of data controllers and processors, including DPO appointment and accountability principles?
What are the rules for data breach notification, retention limits, and cross-border data transfers?
Are there data localization requirements, and what are the penalties for non-compliance?

1. Main Law Governing the Processing of Personal Data in Egypt, Scope of Application, enforcement status, and key exemptions

Main Law Governing the Processing of Personal Data in Egypt

The primary statute is Personal Data Protection Law No. 151/2020 (PDPL)
Enactment: Published in the Official Gazette on July 15, 2020.
Effective Date: Technically effective from October 17, 2020.
Status of Enforcement: While the law is in force, its full enforcement started after the issuance of the Executive Regulations which were issued in March 2026.

Scope of Application

The PDPL applies to any processing of personal data performed "fully or partially by electronic means".

Territorial Scope

The law has an extra-territorial reach. It applies to:

Any violation committed by an Egyptian national inside or outside the country.
Non-Egyptians residing in Egypt.
Non-Egyptians outside Egypt if the act is punishable in the country where it occurred and the data belongs to Egyptian nationals or non-citizens residing in Egypt.

Material Scope & Exemptions

The law covers "Personal Data" (any data relating to an identified or identifiable natural person). However, specific exemptions are critical to note:

The Central Bank of Egypt (CBE): Entities subject to CBE supervision (banks, exchange companies, etc.) are exempt from this law and follow the Banking Law (Law No. 194 of 2020) instead.
National Security: Data processed by national security authorities is exempt.
Personal Use: Data held by natural persons for personal use is exempt.

2. Who is the regulator (PDPC), and what are the licensing/registration requirements for controllers, processors, and DPO?

The Regulator

The law establishes a new regulatory body: the Personal Data Protection Center (PDPC)
Affiliation: Under the Ministry of Communications and Information Technology (MCIT).
Powers: The PDPC is responsible for:

Issuing licenses and permits for controllers, processors, and data protection officers (DPOs).
Receiving complaints from data subjects.
Authorizing cross-border data transfers.
Conducting investigations and monitoring compliance.

Registration Requirements (Licensing)

Unlike the General Data Protection Regulation (GDPR), which generally requires registration only in specific cases, the Egyptian PDPL requires a License for basic operations.

Data Controllers & Processors: Must obtain a license from the PDPC to process personal data.
Fees:

Max 2,000,000 EGP for a license (Data Controller/Processor).
Max 500,000 EGP for permits (e.g., specific processing activities or DPO registration).
Sensitive Data: Handling sensitive data (medical, financial, biometric, religious, children's data) requires a specific authorization.

Registration as a Data Controller

To register as a Controller, an entity must submit an application to the PDPC. The application must prove:

Technical and organizational security capabilities.
Appointment of a Data Protection Officer (DPO).
Compliance with the principles of data processing.

Appointing the Data Protection Officer (DPO)

The appointment of a DPO is mandatory for Controllers and Processors in specific situations.
Registration: The DPO must be registered with the PDPC.
Role:

Monitor compliance with the law.
Act as the liaison with the PDPC.
Receive and handle data subject requests.
Conduct internal audits.

3. What are the core obligations of data controllers and processors, including DPO appointment and accountability principles?

Data Controller and Data Processor Obligations
The law distinguishes clearly between the two roles:
Data Controller Obligations:

Obtain explicit consent from the data subject before processing.
Ensure data is processed for a legitimate, specific, and announced purpose.
Maintain a "Record of Processing Activities" (ROPA).
Appoint a DPO.
Notify the PDPC of any data breaches.

Data Processor Obligations:

Process data only according to the Controller's written instructions or a contract.
Ensure the security of the processing.
Delete or return data upon the completion of the service.
Maintain a record of processing activities.
Assist the Controller in meeting their obligations (e.g., breach notification).

Accountability
The principle of accountability requires that the Controller/Processor not only complies but demonstrates compliance. This includes:

Documenting all processing activities.
Implementing "Technical and Organizational Measures" (TOMs) to secure data.
Conducting Data Protection Impact Assessments (DPIAs) for high-risk processing (implied by the requirement to assess risks).

4. What are the rules for data breach notification, retention limits, and cross-border data transfers?

Data Retention

Storage Limitation: Data cannot be retained for longer than is necessary to fulfill the purpose for which it was collected.

Once the purpose is met, data must be deleted, destroyed, or anonymized legally.

Notification about Personal Data Breaches

The PDPL sets strict and specific timelines for incident reporting.

Notification to the Regulator (PDPC):

Must be made within 72 hours of becoming aware of the breach.
If the breach relates to national security, notification must be immediate (within 24 hours).

Notification to the Data Subject:

Must be made within 3 working days from the date of notifying the PDPC.
This is required if the breach is likely to harm the data subject's rights.

Cross-Border Transfer of Personal Data

The default rule is a prohibition on transferring data outside Egypt. However, it is permitted under strict conditions:

Adequacy: The recipient country must have a level of protection "not less" than that of Egypt.
License: A license/permit for the transfer must be obtained from the PDPC.

Exceptions

Transfers may be allowed without the above if:

Explicit consent is given by the data subject.
It is necessary for medical treatment or a contract benefiting the subject.
It is for legal defense or international judicial cooperation.

5. Are there data localization requirements, and what are the penalties for non-compliance?

No Rules on Localization (Localization & Storage)

Clarification: While you mentioned "No rules on localization," it is important to distinguish between Hard Localization (must store in Egypt) and Soft Localization (barriers to transfer).
General Law (PDPL): There is no explicit article mandating that a copy of data must be stored physically in Egypt.
The "De Facto" Localization: However, because cross-border transfer requires a license and a determination of "adequacy" regarding the destination country, this acts as a soft localization requirement. If you cannot prove the destination country is safe or obtain a license, you are effectively forced to host the data in Egypt.
Sector Specifics: Note that for Banks, the Central Bank Law does impose strict data localization rules, but this falls outside the PDPL.

Liability for Non-Compliance

The Egyptian law is notable for its severe penalties, which include imprisonment, not just fines.

Violation	Potential Penalty
Processing without consent	Fine: 100k–1M EGP Imprisonment: Min. 3 months
Breach of Data Subject Rights	Fine: 100k–1M EGP
Unlawful Cross-Border Transfer	Fine: 500k–5M EGP Imprisonment: Min. 3 months
Failure to Appoint DPO	Fine: 200k–1M EGP
Sensitive Data Violations	Fine: 500k–5M EGP Imprisonment: Min. 3 months

About the firm

Hegazy and Partners for Strategic Consulting

Hegazy and Partners for Strategic Consulting is an Egyptian legal practice providing advisory and litigation services to corporate and individual clients. The firm handles corporate, commercial, and regulatory matters, in addition to representing clients before Egyptian courts.

It is known for its practical approach, professional diligence, and commitment to protecting clients' legal interests.

Cairo

+201001817910

Antitrust regulation

Mahana & Co.

Ahmed Mahanna
Partner

Abdallah Mahanna
Junior Associate

Please tell us about the main requirements of antimonopoly legislation applied in your country? What should a foreign investor take into account when starting a business to avoid restricting competition, what requirements should be observed?
Please name the main legislative acts in the field of competition protection?
In what spheres does the law on competition apply? Which sectors of the economy have the most stringent antimonopoly requirements?
How does the Competition Law define abuse of dominant market position? What are the main violations in this area?
What antimonopoly law requirements should be taken into account when concluding M&A transactions? What authorizations for the transaction should be obtained and what authorities should be notified of the transaction?
What are the penalties for violating antimonopoly legislation? What are the most serious penalties for violations?

1. What are the main requirements of antimonopoly legislation in Egypt? What should a foreign investor take into account?

Antimonopoly regulation in Egypt is governed primarily by Law No. 3 of 2005 on the Protection of Competition and the Prohibition of Monopolistic Practices (the "Egyptian Competition Law").

The main requirements include:

Prohibition of anti-competitive agreements, whether horizontal (between competitors) or vertical (between supplier and distributor), that restrict competition.
Prohibition of abuse of dominant market position.
Mandatory prior notification for qualifying economic concentrations (suspensory pre-closing regime under 2022 amendments).
Obligation to cooperate with investigations conducted by the Egyptian Competition Authority (ECA).

A foreign investor should conduct a competition compliance assessment before market entry, evaluate whether its market share may qualify as dominance (25% or more of the relevant market with the ability to influence prices or quantities), avoid exclusivity or restrictive arrangements that may distort competition, notify the ECA prior to closing if thresholds met, and implement internal antitrust compliance policies.

2. What are the main legislative acts in the field of competition protection?

The key legislative instruments are:

Law No. 3 of 2005 on the Protection of Competition and the Prohibition of Monopolistic Practices (amended by Law No. 175 of 2022).
The Executive Regulations issued by Prime Ministerial Decree (updated post-2022).
The 2022 amendments (Law No. 175/2022) establishing a pre-closing merger control regime.
Relevant provisions of the Egyptian Constitution of 2014 safeguarding economic freedom and prohibiting monopolistic practices.

The enforcement authority is the Egyptian Competition Authority (ECA), an independent public body.

3. In what spheres does the Competition Law apply? Which sectors face the most stringent requirements?

The Competition Law applies broadly to all economic activities conducted in Egypt, as well as acts committed abroad that have an effect on competition within Egypt. It applies to both public and private sector undertakings.

There are no formal sectoral exemptions; however, enforcement has been particularly active in pharmaceuticals/healthcare, food/consumer goods, telecommunications, construction/contracting, automotive, digital markets.

Sectors involving essential goods, public interest, or high concentration levels tend to attract closer regulatory scrutiny.

4. How does Egyptian law define abuse of dominant market position? What are the main violations?

Dominance is presumed at 25% or more market share with ability to influence prices/output independently.

Abuse of dominance includes:

Imposing unfair or discriminatory prices or trading conditions.
Refusal to deal without objective justification.
Predatory pricing.
Tying or bundling unrelated products.
Limiting production or distribution to create artificial scarcity.
Discriminatory treatment among customers in similar positions.

Dominance itself is not illegal; only its abusive exploitation is prohibited.

5. What antimonopoly requirements apply to M&A transactions? What approvals are required?

Mandatory suspensory pre-closing merger control regime (Law No. 175/2022).

A transaction must be notified to the Egyptian Competition Authority before closing if it qualifies as an economic concentration and meets financial thresholds related to turnover or assets (domestic and/or worldwide).

Key points include:

Filing is mandatory prior to completion.
Closing before clearance may result in fines up to 5% of turnover.
The ECA may approve, conditionally approve (with remedies), or prohibit the transaction.
The review includes competitive impact analysis on the relevant Egyptian market.

Foreign-to-foreign transactions may also require notification if they have sufficient nexus to the Egyptian market.

6. What are the penalties for violating antimonopoly legislation? What are the most serious penalties?

Penalties under Egyptian Competition Law include:

Financial fines (1–10% of turnover/assets related to violation).
Daily fines for failure to comply with ECA decisions.
Nullification of anti-competitive agreements.
Potential criminal liability in certain cases.
Publication of judgments (reputational sanction).

For merger control violations, fines may reach up to 5% of combined turnover.

The most serious violations typically involve hardcore cartels (price-fixing, market allocation, bid-rigging), abuse of dominance affecting essential goods, and failure to notify a notifiable concentration before closing.

About the firm

Mahana & Co.

Cairo

+20224501935

Bankruptcy

Hassanein & Partners

Dr. Mohamed Hassanein
Partner

Please describe the specifics of bankruptcy of companies with foreign participation. Are there any requirements different from local companies?
How does the bankruptcy process of a foreign legal entity work in practice?

1. Please describe the specifics of bankruptcy of companies with foreign participation. Are there any requirements different from local companies?

In Egypt, bankruptcy and insolvency matters are primarily governed by the Restructuring, Preventive Composition and Bankruptcy Law No. 11 of 2018.

As a general principle, companies with foreign participation are subject to the same insolvency framework as purely local companies. Egyptian law does not impose a separate bankruptcy regime solely due to foreign shareholding.

However, certain practical aspects may differ in cases involving foreign shareholders, including:

Cross-border elements: If assets, creditors, or guarantees exist outside Egypt, issues of jurisdiction and recognition of foreign judgments may arise.
Foreign currency obligations: Claims denominated in foreign currencies are typically converted into Egyptian pounds at the applicable official rate at the time determined by the court.
Repatriation and capital movements: Any distribution of liquidation proceeds abroad must comply with foreign exchange regulations.
Investment incentives: If the company benefits from special incentives under investment legislation, coordination with relevant authorities may be required.

The insolvency procedures available include:

Restructuring (aimed at preserving business continuity).
Preventive composition (amicable settlement with creditors).
Bankruptcy and liquidation (in case of cessation of payments).

Foreign shareholders benefit from limited liability according to the legal form of the company (e.g., LLC or JSC), provided there is no fraud or personal guarantee.

2. How does the bankruptcy process of a foreign legal entity work in practice?

The treatment of a foreign legal entity depends on whether it has a legal presence in Egypt.

If the foreign company has a branch or conducts business in Egypt:

Egyptian courts may assume jurisdiction over assets and activities located in Egypt.
Bankruptcy proceedings may be initiated before the competent Economic Court if the branch ceases payment of its commercial debts.
The proceedings generally apply to the assets located within Egypt.
If the foreign company does not have a registered presence but has assets or creditors in Egypt:
Egyptian courts may recognize and enforce foreign bankruptcy judgments subject to reciprocity and public policy considerations.
Creditors in Egypt may initiate individual enforcement actions unless a recognized foreign insolvency proceeding restricts such actions.

In practice, cross-border insolvency coordination remains largely governed by domestic procedural rules, as Egypt has not adopted a comprehensive cross-border insolvency framework similar to the UNCITRAL Model Law.

The process typically includes:

Filing for bankruptcy before the competent Economic Court.
Court appointment of a bankruptcy trustee.
Inventory and verification of claims.
Asset liquidation and proportional distribution to creditors according to statutory priority rules.

Secured creditors generally retain priority over secured assets, while employees’ wages and certain tax claims may enjoy statutory preference.

Overall, while the substantive regime does not discriminate against foreign participation, cross-border enforcement, currency considerations, and asset location play a significant practical role in cases involving foreign entities.

About the firm

Hassanein & Partners

Cairo

+201202224217

Anti-corruption measures and combating money-laundering

The Egyptian office for lawyering and legal consults

Dina Adly Hussein
CEO

What actions of a foreign company may be qualified as corruption?
What measures of responsibility exist in case of detection of corruption?
How is the fight against money laundering organized in your country?

1. What actions of a foreign company may be qualified as corruption?

Under Egyptian law, corruption is primarily addressed in the Egyptian Penal Code and in sector‑specific legislation, particularly Anti-Corruption Law No. 106/ 2013 and the Public Procurement Law No. 182 of 2018. These rules apply equally to domestic and foreign companies operating in Egypt.

In general terms, corruption arises when a company or its representatives attempt to influence the actions of public officials through unlawful benefits or engage in practices that undermine the integrity of public administration. Corruption actions may include:

Bribery of Public Officials

Articles 103 to 111 of the Egyptian Penal Code criminalize the act of offering, promising, or granting any advantage to a public official in exchange for performing, delaying, or refraining from performing an official duty. This advantage may take the form of money, gifts, hospitality, travel benefits, or any other material or immaterial benefit.

For example, if a foreign company offers money or luxury gifts to a government official in order to accelerate the issuance of a license or influence the outcome of a regulatory inspection, such conduct would constitute bribery under Egyptian law.

Use of Intermediaries and Consultants

In international business practice, companies often engage local consultants or intermediaries. While legitimate in many cases, problems arise when intermediaries are used to conceal illicit payments to public officials.

Egyptian criminal law considers participation in corruption broadly. If a consultant or agent acts as a conduit for bribery, the company and its responsible managers may still be held accountable.

Kickbacks and Hidden Commissions

Kickbacks frequently arise in public procurement or infrastructure projects. They occur when a company secretly agrees to pay a percentage of the contract value to an official involved in awarding or supervising the contract.

Even if disguised as consultancy fees or bonuses, if the purpose is to influence a public decision, the conduct will likely be treated as bribery under Egyptian law.

Fraud and Manipulation in Public Tenders

The Public Procurement Law No. 182 of 2018 emphasizes transparency in government tenders. Prohibited practices include submitting falsified financial statements, coordinating bids to simulate competition, or artificially inflating prices.

Such conduct may result in administrative sanctions as well as criminal charges such as fraud or document forgery.

Participation in Misuse of Public Funds

Foreign companies may also be implicated when they knowingly participate in schemes that misuse public funds. For instance, overcharging a government entity and sharing the excess funds with officials may be prosecuted under provisions related to embezzlement or abuse of public office.

2. What measures of responsibility exist in case of detection of corruption?

When corruption is uncovered, Egyptian law allows for several layers of responsibility, including criminal prosecution, administrative sanctions, civil liability, and corporate consequences. There would be various types of responsibilities burdened upon any company who gets involved in corruption actions, and these include:

Criminal Responsibility

Criminal liability primarily applies to individuals directly involved in corrupt acts, such as company directors, employees, or intermediaries.
Penalties may include imprisonment, significant financial fines, and confiscation of illegal proceeds. Foreign nationals convicted of corruption may also face deportation after completing their sentences.

Administrative Sanctions

In addition to criminal penalties, companies may face administrative measures imposed by regulatory authorities. These measures may include suspension of licenses, exclusion from public tenders, or financial penalties.
Companies involved in corruption may be blacklisted from government procurement procedures for several years.

Civil Liability

Corruption may also generate civil claims. Government entities or private competitors harmed by corrupt practices may seek financial compensation through the courts. This may include the recovery of losses resulting from inflated contracts or the cancellation of improperly awarded agreements.

Corporate Consequences

Although criminal responsibility often focuses on individuals, companies themselves may face financial penalties, confiscation of assets related to the offense, or closure of local branches involved in illegal conduct. Beyond legal sanctions, corruption investigations may significantly damage a company’s reputation and commercial prospects.

3. How is the fight against money laundering organized in your country?

Egypt has developed a comprehensive anti‑money laundering framework aligned with international standards. The primary legislation governing this field is the Anti‑Money Laundering Law No. 80 of 2002.
Money laundering refers to the process of concealing or disguising the illegal origin of funds derived from criminal activities such as corruption, fraud, or organized crime. Egypt has taken far steps towards combating money laundering:

Institutional Framework

A central institution in this area is the Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU), which functions as Egypt’s financial intelligence unit. It receives suspicious transaction reports from financial institutions and forwards relevant cases to prosecution authorities.

The Central Bank of Egypt supervises banks and enforces compliance with anti‑money laundering regulations, while the Financial Regulatory Authority oversees non‑bank financial sectors such as insurance, capital markets, and leasing.

Preventive Compliance Measures

Financial institutions must apply several preventive mechanisms. One of the most important is the "Know Your Customer" (KYC) principle, which requires banks to verify the identity of clients and understand the nature and origin of their funds.

Institutions must also file Suspicious Transaction Reports when they identify financial movements that appear inconsistent with legitimate business activities. Large cash transactions are subject to enhanced monitoring, and authorities may freeze assets suspected of being linked to criminal activities.

International Cooperation

Egypt participates in international cooperation mechanisms to combat financial crime, including global and regional networks dedicated to information sharing and the implementation of international anti‑money laundering standards.

About the firm

The Egyptian office for lawyering and legal consults [logo]

Dina Adly Hussein is the CEO of the Egyptian Office for Lawyering and Legal Consults, advises clients on corporate, commercial, and regulatory matters within the Egyptian market, and has been a leading legal strategist since 2007. She is a recognized expert in criminal law and serves as a Board Member of the Egyptian Association of Criminal Law, specializing in high-stakes litigation and client advocacy. She operates her own independent practice in Cairo, focusing on complex legal cases for both local and international clients.

Cairo

+201032222177

List of abbreviations

Abbreviation	Full Term
AML	Anti–Money Laundering
CBE	Central Bank of Egypt
EMLCU	Egyptian Money Laundering and Terrorist Financing Combating Unit
EGX	Egyptian Exchange
FATF	Financial Action Task Force
FIU	Financial Intelligence Unit
FRA	Financial Regulatory Authority
KYC	Know Your Customer
MENAFATF	Middle East and North Africa Financial Action Task Force
STR	Suspicious Transaction Report
OECD	Organization for Economic Co-operation and Development
UNODC	United Nations Office on Drugs and Crime
PEP	Politically Exposed Person
CDD	Customer Due Diligence
EDD	Enhanced Due Diligence
LEA	Law Enforcement Agency
MOF	Ministry of Finance
MOJ	Ministry of Justice
MENA	Middle East and North Africa