the Golden License In Egypt is an instrument that helps contribute to increase of exports, foreign financing, and the growth of businesses in Egypt. Key sectors include renewable energy, transportation, and digital infrastructure. Learn more about the eligibility criteria and strategic benefits that come with a Gold License.
Table of content:
What is the golden license in Egypt?
Investment Law No. 72 of 2017.
Incentive scheme of the Golden License In Egypt.
What are the Requirements for the Golden License In Egypt?
Procedure the Golden License In Egypt .
What is the Golden License In Egypt ?
The Golden License is a comprehensive approval granted to companies upon a decree of the Egyptian Council of Ministers. This license encompasses the establishment, operation, and management of projects, including the necessary building licenses and the allocation permits of the real property required.
Investment Law No. 72 of 2017.
· A single permit issued by the Council of Ministers represents approval from various government agencies.
· The program focuses on attracting investments in strategic national projects and public-private partnerships, often in sectors such as infrastructure, renewable energy or technology.
· The legal requirements for obtaining a Golden License, which typically include company structure, minimum investment amount, project type and financial resources (often foreign investment).
Incentive scheme of the Golden License In Egypt.
According to Article (20) of Investment Law, the Golden License In Egypt may include the application of one or more incentives stipulated in the Investment Law to the project, and these include the following:
- General Incentives.
- Special Incentives.
- Additional Incentives.
The Golden License could be granted to the projects implemented by the Partnerships concluded by public authorities and private partners (i.e., Public-Private Partnerships “PPPs”). Provided that such projects shall engage of any area of infrastructure, public utilities, new and renewable energy, ports, telecommunication, roads and transportation. The following sectors and activities are eligible for the license:
1. Electricity and Renewable Energy:
- Green hydrogen projects (production, transportation, distribution).
- Renewable energy projects aimed at providing energy to water desalination and green hydrogen production projects.
- Electricity storage projects, such as electric pumping and storage as well as batteries.
- Projects aimed at linking Egypt’s power grid to neighboring countries and exporting electricity.
2. Petroleum and Mineral Wealth:
- Projects developing crude oil, gas and petroleum material pipelines and networks to meet local market needs.
- Projects establishing strategic shipping ports and storage areas for crude oil and petroleum products.
- Digital infrastructure development projects aimed at digital transformation.
- Expansion and transformation projects using compressed natural gas as an alternative to diesel and gasoline.
- Projects establishing packaging, concrete pipes, and steel pipes factories.
- Projects establishing laboratories for gold refining, casting, and stamping as pPetrochemical plants, projects producing metallic silicon and polysilicon, or phosphate fertilizers and phosphoric acid, or tantalum ore extraction, concentration, and manufacture projects.
3. Transportation:
- Maritime Transportation.
- Railways.
- Electric Traction.
- Seaports and Logistics Centers.
- ·River Transportation.
4. Industry:
- Industries supplementary to new and renewable energy production products.
- Automotive Industry and industries supplementary thereto, including electric cars, electric vehicle charging stations, natural gas cars, and cylinders.
- Wood, furniture, and chemical industries.
- Antibiotic, tumor drugs, and cosmetic industries.
- Food industries and agricultural crops.
5. Communication and Information Technology:
· Design and manufacturing of solar cells and renewable energy conversion systems.
· Local manufacturing of lithium batteries.
· Manufacturing of multi-layer PCBs and projects dependent thereon, such as the manufacture of cell phones and tablets.
6. Housing, Utilities and Urban Communities:
- Establishment, development, and efficiency improvement of main utility plants (drinking water stations and related lifting stations – seawater desalination stations – sewage stations and related lifting stations).
- Building, development, and efficiency-improvement of main internal roads and rounds about as well as those linking cities, new urban communities, and governorates to one another.
- Urban development projects eliminating the randomly built areas inside the
- governorates.
What are the Requirements for the Golden License In Egypt?
- The Golden License shall be granted by a decision of the Prime Minister for investment projects that meet certain conditions such as:
- The company must take the form of a joint stock company or limited liability company.
- The company’s issued capital shall not be less than 20% of the investment costs of the project.
- Provide evidence of financial solvency for the implementation of the project.
- A preliminary feasibility study on the project prepared by a reputable and licensed national or international consultancy firm.
The Project shall be of a strategic or national nature if it meets the following criteria:
- Contributes to increasing exports by exporting abroad at least fifty percent (50%) of its products per annum.
- Its source of finance shall be foreign funds transferred from abroad via one of the Egyptian banks.
- The decrease of imports, industrial domestication, as well as deepening local components in its products, provided that the percentage of the local component of raw materials and production requirements in its products is no less than 50%.
- To be a labor-intensive project employing the national labor force.
- To be established in one of the areas in greatest need of development in accordance with decree No. 7 of 2020.
- Contributes to reducing the environmental impact, reducing heat and gas emissions, and improving the climate.
Obtaining the Golden License In Egypt: Procedure.
First: The Investor shall submit the required documents for the Golden License, and complete the application form, ensuring all details are accurately filled out, either to the General Authority for Investment and Free Zones (“GAFI”), or online;
Second: The High Committee of golden license in coordination with GAFI should then study the application to verify that the project satisfies the provided conditions and requirements needed in this regard;
Third: Upon successful review of the Higher Committee of golden license, the said committee is to present the investor’s project to the Cabinet; and
Fourth: The Cabinet shall issue the final approval and grant the golden license.
The license requires 20 to 30 working days from the date of validating the provided documents. This is the duration for the internal assessment of GAFI. Nevertheless, this does not include the final approval stage which is granted by the Cabinet.
For more information and/or assistance required with the Golden License In Egypt, please contact moa@id.com.eg, the Corporate Procedural Department at I&D.
