Country investment factsheet · National framework (non-OHADA)
Legal & tax framework for investment — 2026 edition, updated September 2026
Series: UGGC Africa country factsheets — a country-by-country overview of investment across Africa.
The most populous economy in the Arab world and a crossroads between Africa, Asia and Europe, Egypt holds a strategic position thanks to the Suez Canal, its gas resources (the Zohr field) and a vast domestic market. Egypt is not an OHADA member: company law, accounting and arbitration follow a national framework, well-structured and home to a regionally leading arbitration institution, CRCICA. After several devaluations, the Egyptian pound moved to a floating regime in March 2024. This factsheet summarises the macroeconomic, tax and legal data relevant to an entry decision, with particular focus on the legal securing of the investment.
Egypt at a glance
A national business-law framework
- National law (non-OHADA). Egypt does not apply the OHADA Uniform Acts: company law, security interests and insolvency are governed by codified Egyptian law.
- Arbitration. Arbitration Law 27/1994 (UNCITRAL Model Law-based) governs arbitration; CRCICA (Cairo Regional Centre for International Commercial Arbitration) is one of the continent’s leading arbitration institutions. Egypt is a party to the 1958 New York Convention.
- Accounting. National framework — Egyptian Accounting Standards (EAS), largely IFRS-based.
- Egypt is a member of the African Union, the AfCFTA, the WTO and COMESA.
Common company forms
| Form | Minimum capital | Typical use |
|---|---|---|
| Joint Stock Company (SAE) | EGP 250,000 (500,000 if public offering) · 3 shareholders min. | Larger projects, share-based governance |
| LLC | No fixed statutory threshold | Most common form for a subsidiary |
| One Person Company | Per by-laws | Single-member company |
| Branch / representative office | Attached to the foreign company | Initial entry, prospecting |
Investment one-stop shop: GAFI (General Authority for Investment and Free Zones).
Tax regime — key points
| Tax | Rate | Details |
|---|---|---|
| Corporate income tax (CIT) | 22.5% | Standard rate. Oil and gas: 40.55%. Suez Canal and central bank: 40%. |
| VAT | 14% | Standard rate; 5% on production machinery and equipment; 0% on exports. Registration threshold: EGP 500,000 of turnover over 12 months (Art. 16, Law 67/2016). 23/06/2026 reform (House of Representatives): VAT on medical equipment cut from 14% to 5%; VAT suspension on imported industrial machinery extended from 2 to 4 years; refund processing time shortened from 6 to 4 months; crude petroleum, previously exempt, now subject to a 10% schedule tax. |
| Withholding (non-residents) | 20% (interest / royalties / services) | Dividends: 10% (5% if EGX-listed). Reduced by tax treaty. |
| Tax treaties | France and a broad network | France–Egypt treaty signed 19/06/1980 (in force 1982; amendment in force 2004). Source: Egyptian Tax Authority. |
Tax source: PwC Worldwide Tax Summaries — Egypt, updated 04/02/2026. June 2026 VAT reform: House of Representatives (23/06/2026), relayed by the State Information Service (sis.gov.eg). ⚠️ Fiscal year runs July to June.
Attractive sectors
- Logistics & the Suez Canal — the canal and the Suez Canal Economic Zone (SCZONE) offer a strategic position for export industry and logistics. (Canal revenue fell sharply in 2024 amid the Red Sea context — a factor to watch.)
- Energy & gas — the Zohr gas field, refining, petrochemicals, renewables.
- Real estate & construction — major programmes, including the New Administrative Capital.
- Agriculture & agri-food — irrigation, processing, a large domestic market.
- Industry & tourism — a diversified manufacturing base; heritage and seaside tourism.
Investment incentives
- Investment Law 72/2017 — guarantees, tax incentives and zone regimes (free zones, investment zones).
- GAFI — one-stop shop for company incorporation and granting of advantages.
- “Golden Licence” (art. 20) — a single fast-track approval for strategic projects.
- SCZONE — dedicated customs and tax regimes along the Suez Canal.
Work permits for expatriates
- Employment of foreign staff is subject to authorisation and per-company quotas; residence and work permits are issued on the basis of a contract.
- Transfer of expatriates’ pay is possible, within the foreign-exchange rules.
Foreign-exchange regulation
- Floating regime since March 2024. On 6 March 2024, the Central Bank of Egypt (CBE) abandoned the administered rate for a managed float, under an IMF agreement. Convertibility for current operations improved markedly as a result.
- Repatriation of dividends and capital. Transfer of profits and disposal proceeds is in principle open to investors; the investment should be made through official banking channels with full traceability, notably to benefit from Law 72/2017 guarantees.
- Volatility watch. After a period of foreign-currency shortage, the situation has normalised, but exchange-rate volatility remains a key modelling parameter for any import-heavy project.
Regulation subject to change — terms to be verified with the CBE and an approved bank.
Securing the investment — the UGGC angle
Egypt offers a codified investment framework and a leading arbitration institution, but managing exchange risk and aligning with the investment law make the difference.
- CRCICA arbitration — a well-drafted arbitration clause and a recognised institution; New York Convention applicable to enforcing awards.
- Law 72/2017 & guarantees — secure transfer and non-expropriation guarantees, use the golden licence for eligible projects.
- Exchange & financing — invest through official channels and document flows to ease repatriation; model pound volatility.
- Structuring & tax — choice of form, sector regimes (oil-gas, SCZONE), tax treaties.
Our teams support these transactions in mergers & acquisitions, tax law and litigation & arbitration.
Our reading — the practitioner’s view
The figures don’t tell the whole story. Here is what we flag to clients before any entry into Egypt.
Which structure to choose?
The LLC is the most common form for a subsidiary, for its flexibility and the absence of a fixed capital threshold. The Joint Stock Company (SAE) suits larger projects, capital openings or share-based governance. The choice depends on project size, sector (some impose local-ownership thresholds) and exit strategy.
Three pitfalls investors underestimate
- Exchange risk. Successive devaluations have heavily affected the foreign-currency value of assets and margins. Investing through official channels, documenting flows and modelling volatility are essential.
- The July-June fiscal year. Egypt’s offset fiscal and statistical year (and therefore growth data) must be taken into account to compare figures and set the filing calendar.
- Sector taxation. Higher rates (oil-gas 40.55%, canal 40%) and VAT thresholds warrant careful checking against the project before any modelling.
From text to practice
GAFI is the entry point for incorporation and incentives; the “golden licence” can speed up strategic projects. For regulated sectors (energy, SCZONE), anticipating authorisations and their timelines drives the schedule. The common thread remains exchange management and compliance with investment-law guarantees.
Signal to watch: the 23 June 2026 VAT reform — medical equipment, imported industrial machinery, refund timelines, and the new tax on crude petroleum — confirms a trajectory of targeted fiscal easing for industry and healthcare, in the wake of Law 72/2017. A project under structuring should check whether its sector is covered before locking in its financing plan.
Frequently asked questions
What is the minimum capital to set up a joint stock company in Egypt?
A joint stock company (SAE) requires EGP 250,000 (EGP 500,000 for a public offering), with at least 3 shareholders; the LLC has no fixed statutory threshold. As Egypt is not an OHADA member, company law is national.
What is the corporate income tax rate in Egypt?
The standard rate is 22.5%. Specific rates apply to oil and gas (40.55%) and to certain activities (Suez Canal, central bank: 40%).
What is the VAT rate in Egypt?
VAT is 14% (standard); 5% on production machinery and equipment; 0% on exports. The registration threshold is EGP 500,000 of turnover over 12 months. A reform passed on 23 June 2026 cut VAT on medical equipment to 5%, extended the VAT suspension on imported industrial machinery from 2 to 4 years, shortened the refund processing time from 6 to 4 months, and made crude petroleum — previously exempt — subject to a 10% tax.
How can an investment be secured in Egypt?
Recourse to CRCICA arbitration (Law 27/1994), national accounting (EAS), and the benefit of Investment Law 72/2017 (GAFI, free zones, golden licence). Egypt is a party to the 1958 New York Convention.
What is the exchange-rate regime of the Egyptian pound?
Since 6 March 2024, the pound has been on a floating regime (managed float), following an IMF agreement. Current-account convertibility improved markedly, but volatility remains to be watched.
Considering an entry into Egypt?
Contact the UGGC Africa team · Download the country factsheet (PDF)
Disclaimer. This factsheet is provided for general information, as of September 2026; it does not constitute legal or tax advice and cannot bind UGGC Africa. The figures come from public sources and are subject to change (finance acts, exchange regime). Any investment decision should be the subject of a tailored analysis.
Sources: IMF (World Economic Outlook 2025-2026) · World Bank · Worldometer (population) · PwC Worldwide Tax Summaries — Egypt (04/02/2026) · GAFI (gafi.gov.eg) · Egyptian Tax Authority (eta.gov.eg) · Central Bank of Egypt (cbe.org.eg) · State Information Service (sis.gov.eg, 23/06/2026 VAT reform) · uggcafrica.com.