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FDI was the unofficial theme at yesterday’s cabinet meeting, with the Madbouly cabinet following up on several decisions aimed at improving the investment climate and boosting inflows, according to a statement.
Foreigners may soon be able to own more than two properties: Cabinet approved a decision lifting current controls on foreign ownership of real estate, provided that foreigners pay for their purchases in hard currency and via bank transfer to a state-owned bank. Under current rules, foreigners are allowed to purchase a maximum of two properties. This was one of 22 decisions introduced by the Supreme Investment Council (SIC) in its first meeting back in May in efforts to boost investment.
On a related note: Ministers approved two draft decisions allocating state owned land in New Cairo and Sixth of October to unnamed international real estate developers, to be paid for in USD. The government has been making it easier for foreign parties to buy land in hard currency as one way to address the ongoing FX shortage.
Foreign investors will also, for the first time, be allowed to register as importers with 10-year licenses, it seems, potentially making it easier for them to get goods and production inputs into the country without contracting with an Egyptian middleman.
The SIC’s long list of decisions is, inch by inch, becoming reality: The government has been working to deliver on each of the 22 decisions taken by the council. Most recently, House committees yesterday approved draft bills to expand investment incentives and reinstate taxes on state entities. We have the details in Legislation Watch, below.
ALSO APPROVED BY CABINET-
#1- A USD 733 mn loan from JICA: The cabinet approved a USD 733 mn loan from the Japanese International Corporation Agency (JICA) to finance the construction of Cairo Metro Line 4. The first, 19-km phase of the fourth line will connect Cairo, Giza and Sixth of October City. It is expected to take six years to complete. The second, 23.5-km phase, will connect to New Cairo.
#2- France’s Alstom plan to set up an industrial complex: Cabinet approved in principle a plan put forward by French manufacturer Alstom to establish an industrial complex in Alexandria’s Burj Al Arab. Alstom wants to establish two factories producing electrical and signaling systems and other parts for railways, metro lines, high-speed rails, and monorails.
