Ministers have approved relaxing rules on freezones under government efforts to attract more private-sector investment. Amendments to the executive regulations of the 2017 Investment Act would allow the cabinet to exempt companies from having to comply with most of the rules currently in place for setting up freezones, cabinet said in a statement following its weekly meeting yesterday.

This would mean no local component, export quotas: To establish a private freezone, investors currently have to source at least 30% of their raw materials and equipment from local suppliers, and are required to allocate at least 80% of output to exports. The regulations also stipulate that a minimum of USD 20 mn has to be invested into the project and at least 500 people have to be employed.

This will be done on a case-by-case basis: Cabinet will be able to waive the provisions for a freezone on the proposal from the relevant minister. Ministers may also choose to retain any number of the original provisions if it deems them necessary for a specific project.

The move marks the latest in a series of measures taken by the government aimed at boosting foreign investment. Prime Minister Moustafa Madbouly last week unveiled a package of 22 regulatory reforms to reduce red tape and improve transparency.

Also agreed at yesterday’s cabinet meeting:

IDSC revamped: Cabinet approved a draft decision to restructure the Information and Decision Support Center (IDSC) to enhance its role supporting the government, providing the required data, analysis, and outlooks.

More responsibilities for the MSMEDA: Cabinet has approved amendments to the decision establishing the Micro, Small and Medium Enterprise Development Agency (MSMEDA), in light of the agency’s increasing list of responsibilities.

Exemption of airport fees for foreign airliners extended: Extending foreign operators’ exemption from airport fees until March 2024 as part of the state’s efforts to boost tourism. The exemption was set to end last month.

Land reallocation: Ministers approved several draft decisions reallocating state owned land, including a 16-feddan land plot to an international real estate developer.

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