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The government approves amendments to facilitate the establishment of free zones in support of inves

25/05/2023

The Cabinet approved amendments to facilitate the establishment of free zones as part of the government's efforts to attract more private sector investment. So that the approval of establishing private free zone projects is in accordance with a set of conditions and controls so that these projects adhere to the conditions of industrial security, civil defense and fire, in accordance with the Egyptian code followed in this regard, or in accordance with the decisions issued by the Minister concerned with industrial affairs regarding industrial facilities, and are also committed to securing Its facilities and borders are equipped with guard towers, surveillance cameras, and the presence of personnel from the Authority’s security and port security at the expense of the project. The General Authority for Investment is also obligated to follow up the activities of private free zone projects to ensure that they are properly carrying out their work, and to ensure the procedures followed to practice the activity, provided that the competent zone administration presents periodic reports Its board of directors should consider whether or not the feasibility of continuing the project to operate under the private free zones system. The conditions also included the need for all free zone projects to put all records and books at the disposal of the Authority during the examination and follow-up processes, and the Authority may seek the assistance of whoever it deems appropriate from the concerned authorities in this regard, and the final approval of the project will be forfeited if the investor does not take serious executive measures, and from that start In the incorporation procedures, submitting engineering drawings, obtaining the necessary approvals to establish the project from the concerned authorities, as well as the timetable for starting the activity, within six months from the date of being notified of the decision to approve the project, and this period may be extended for another period or periods in light of the justifications. submitted by stakeholders and appreciated by the Free Zone Board of Directors. The Council of Ministers may, for considerations it assesses in each case separately, and based on the presentation of the competent minister, and after the approval of the Board of Directors of the Authority, exclude one of the projects from one or more of these conditions. (Release)

 The amendment also included the addition of a new article No. (76), which states that “as an exception to the conditions and controls stipulated in Article 76 of these regulations, except for what is stated in Clause (8) thereof, the Council of Ministers may – based on the proposal of the competent minister – approve the establishment of a zone A private service free zone consisting of a main service project based on establishing, developing, managing, and providing space for some sub-service projects that engage in similar activities, falling under any of the sectors mentioned in Article (1) of these regulations, under the private free zones system, in accordance with a number of conditions. The controls are determined in that the main project in the service private free zone takes the form of a joint stock company or a limited liability company, and that the main project in the service private free zone adheres to the conditions of civil defense and fire in accordance with the Egyptian code followed in this regard, and that the board of directors of the General Investment Authority issues a decision on procedures and requirements The establishment of sub-service projects within the private free zone shall be approved by the Council of Ministers based on the proposal of the competent minister. The conditions and controls also include the competence of the board of directors of the public free zone, within whose geographical scope the private service free zone is located, to approve the establishment of projects within the private service free zone and to cancel them. Renewal and modification of the license. The license must include a statement of the project's objectives, validity period and limits, and the value of the financial guarantee that is presented in exchange for the obligations that may be due on the project.

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