Grandfathered incentives? Great. But what we want are details on the end of tax breaks for state entities.

House committees approve bills aimed at boosting private-sector investment: The House Economic Affairs Committee yesterday approved amendments to the Investment Law aimed at expanding incentives, while the Budget and Planning Committee approved a draft bill reinstating taxes on state entities. Cabinet signed off on the two bills before the Eid Al Adha break.

The rationale: The bills aim to improve the investment climate, support private-sector participation, and promote fairness, competition, and transparency in the economy. They were among 22 moves to reform the business climate put forward by the Supreme Investment Council in its first ever meeting back in May.

Grandfathered incentives + more folks can apply for “golden” license: The Economic Affairs Committee approved amendments to the Investment Law that allow projects that predate the 2017 bill to benefit from its incentives and expand the variety of projects eligible for a single approval or ‘golden’ license. “The amendments aim to create a more attractive investment climate that can attract greater foreign inflows,” Asser Mounir, advisor to the General Authority for Freezones and Investment (GAFI), told MPs. “This is another step towards cutting red tape.”

Curbing tax perks for state entities: The Budget Committee greenlit a bill that eliminates preferential tax treatment for some state-owned entities. Among the tax breaks the bill will remove are customs and real estate tax exemptions, Bassam El Zayyat, advisor to the parliamentary affairs minister, told the committee. MP Ayman Mehasseb said the draft law “shows the state is serious about improving the investment climate and reinforcing transparency.”

What we know so far — and what we don’t: The bill is not set to impact companies that fall under international agreements, that are defense- or national-security-related, or basic infrastructure projects. We’re still waiting for the exact list of tax breaks it will remove and from which state entities, neither of which are specified in the bill. In other words: This is potentially a step in the right direction, folks, but the devil will be in the details. Watch this space.

This is part of our economic reform program: The government is aiming to increase exports to USD 100 bn a year by the middle of the decade, and attract USD 40 bn in private investment by 2026 as it looks to increase the private sector’s economic footprint. Improving the business climate is also a key condition of our stalled USD 3 bn loan program with the IMF.

What’s next? The two draft bills will be up for discussion and a vote when the House reconvene next week.