Egypt’s New “Golden License” for Investment Projects

President Abdel Fattah El-Sisi presidential order grants all investors over the next three months the right to obtain a “Golden License”. What is this golden license and how is it beneficial to both investors and the economy? Keep reading to find out 

What is a Golden Investor License? 

Simply put it is a single license granted to new investment projects in order to accelerate the operation, management, and allocation of the necessary facilities and approvals with just a single approval unlike regular licenses which require approvals from several departments/agencies and much more paperwork.

An investor with a Golden License will find the approval process much more simplified and faster than usual which means they will be able to start their projects faster and save both time and money.

How was the term “golden license” coined?   

The term Golden License dates back to the cabinet meeting on December 23^rd, 2021, which witnessed the approval of Prime Minister Dr. Mostafa Madbouly of the draft proposal presented by the General Authority for Investment and Free Zones. 

The proposal included suggestions on how to distribute sub-sectors of investment activities in sectors (A) and (B), in accordance with the provision of Article (11) of the Investment Law on Investment Incentives.

More on the economy: Factors that could affect the global economy in the future

Simplifying procedures for investors

Investment laws are very keen on simplifying procedures for investors to establish projects and obtain the necessary licenses. 

This is under the initiative to overcome bureaucracy in 29 articles of the law, the most important of which was working to establish a desk dedicated to investments in all branches of the General Investment Authority to deal with investors' requests.

Solving investors' problems by special committee

The government decided to form a special committee whose role will be to solve the problems of investors, facilitate the granting of licenses and deal immediately with all the challenges facing the establishment of companies and new investment projects.   

The license does not exempt the investor from the following

The license does not exempt the investor from specific requirements. They will not be granted an easy pass but it does reduce approvals to a single one. 

Investment projects eligible for the Golden License are required to meet all regulatory requirements from various government agencies.

Speaking of money and the economy don’t miss our article on: Why countries can’t just print more money to solve economic crises

Smoother process

The fundamental difference is that the investor goes through a much simpler process to receive approvals, which reduces time and effort, and eliminates the need to obtain separate approval from dozens of different agencies.

The golden license also applies to building permits.

In short, if you get the Gold License, you have all the necessary approvals to start your business.

Increasing private sector participation

In official statements, Prime Minister Dr. Mostafa Madbouly said that the government aims to increase the participation of the private sector to 65% of the total investments implemented as opposed to the current 30%. 

Madbouly stressed that Egypt is shifting to a usufruct system (حق الانفتاع) for industrial lands, with pricing being only for the value of utilities in relation to ownership. Usufruct is the legal right to use and derive profit from property belonging to someone else provided that the property itself is not damaged in the process 

Benefits of the “Golden License” for the economy

• The Golden License will attract foreign investments to Egypt.
• Alleviate many typical burdens faced by investors.
• The facilities offered by the Golden License to investors will allow Egypt to start on the path of reaching its goal of becoming the regional center in middle east and Africa.