Free zones are designated areas in Egypt governed by special rules on customs, taxation and foreign exchange. They are regulated by Investment Law No. 72 of 2017 and its Executive Regulations and supervised by the General Authority for Investment and Free Zones (GAFI). They are designed mainly for export-oriented activities.
Public and private free zones
- Public free zones: state-run zones where projects are licensed and serviced land is allocated by the zone’s management.
- Private free zones: established for a single project, or several projects in similar activities, outside the public zones, subject to approval.
Who they suit
Free zones are most relevant for manufacturing, processing, storage and trading activities that import inputs and export most of their output. Foreign investors may generally own a project fully or in any proportion, except for projects in Sinai. Certain activities, such as weapons and national-security related activities, are not permitted, and some energy-intensive industries need additional approvals.
Incentives and limits
- Exemption from customs duties and other taxes on goods and equipment within the framework set by law
- Freedom to transfer capital and profits abroad
- Selling into the Egyptian market is treated as an import and is subject to customs procedures
- Licences are granted subject to conditions and charges set by GAFI and the law
Whether a free zone project is better than a company in the local market depends on your sales model and your tax position, and we recommend taking tax advice alongside the legal structuring.
How we help
- Advising whether a free zone, an investment-law company or a standard Egyptian company fits your plan
- Preparing the project application and corporate documents
- Coordinating with GAFI through licensing
- Ongoing corporate and compliance support after licensing
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Speak to us
Tell us about your plans and we will come back with a written scope and a fixed fee. Contact Helmy Law or write to info@helmylaw.com.
This page is general information, not legal advice. See our Disclaimer.