House signs off on bills to boost FDI in final session before summer recess: In their last session before the three-month summer break, MPs gave their final approval to two key pieces of legislation in the government’s efforts to level the playing field for the private sector and attract more foreign investment.

REFRESHER- What bills to boost FDI? The two bills are listed as part of 22 moves to reform the business climate proposed by the Supreme Investment Council in its first ever meeting back in May. They were greenlit by House committees last week. They are:

#1- Amendments to the Investment Law that expand the incentives made available to private sector companies. The bill will allow projects that predate the 2017 law to benefit from incentives and expand eligibility for “golden licenses.” The amendments got MPs’ preliminary approval earlier in the week.

#2- A bill that will eliminate tax exemptions currently granted to state-owned entities. While we don’t have the details yet, MPs have said that will include scrapping customs and real estate tax exemptions that were previously granted to certain state entities. The bill is not set to impact projects that are subject to international agreements, that are defense- or national-security-related, or basic infrastructure projects.

Details still TK: Both bills are welcome, but the devil is in the details, particularly when it comes to the thorny questions of which exemptions will be phased out for which companies on what schedule. We expect to know more when the executive regulations for the laws hit the street — a process that can take up to six months from the moment they’re signed into law by President Abdel Fattah El Sisi.

ALSO APPROVED BY THE HOUSE YESTERDAY- MPs put their last session to good use, also signing off on bills setting up three new national entities, and on for foreign agreements:

New public bodies signed off on by MPs:

  • The Intellectual Property Authority will merge institutions currently responsible for regulating intellectual property rights in Egypt into a single entity. The new body would be responsible for advancing technological innovation, scientific research, and cultural development and comes as part of a wider five-year intellectual property strategy.
  • The EGP 1 bn Differently Abled Fund will support people with disabilities to enter the job market and run SMEs, among other forms of social and financial support.
  • The National Alliance for Civilian And Development Action will work to establish development projects and social development initiatives in collaboration with NGOs and civil society organizations.

Foreign agreements that got the final greenlight:

What’s next? The House is now out for summer and won’t reconvene until October. Stay tuned for our customary rundown of all the bills that were discussed, voted on, or got stuck in legislative limbo this session — and what to expect when MPs come back from the break.

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