Throughout the cluster, facilities provide a cheerful and secure opportunity for investment. This offers prudent advantages including inter-alia: a one stop shop model, a strategic location, an integrated supply and value chain, and door-step service for investors across the leather industry;
Under the newly adopted investment law, investments are protected and cannot be nationalized. A 10% foreign employment cap is also enacted.
For the leather industry in specific, a 30% tax refund entitlement is secured through a rebate scheme for investments extending across a 5-year period.
This also applies to other contributors including engineering and chemical industries. Newly established companies and receive an exclusive custom reduction on machinery and equipment, only 2% is collected instead of 5%.
- Foreign investors will receive the same treatment under law as Egyptian.
- Investment projects can’t be nationalized and can have up to 10% foreign employee.
- Leather industries are entitled for 30% cashback in form of tax refund over 7 years.
- Engineering industries and chemical industries (intermediate for leather).
- Investors has the right to repatriate all their profits abroad as well as the salaries of foreign employees through the official banking system.
- Investors can liquidate and exit in case of commercial difficulties as defined by law.
- New companies established for 2% instead of 5% customs on imported machinery and equipment.
- Cashback incentive on transportation cost to certain countries.
- Access to more than 50 countries on free trade agreements basis including EU, MENA and COMESA.
- Proximity to luxurious leather products spending up to US$ 650 Mil.
- Tax rebate scheme up to 30 % of total investments over 7 years period.
- Local population over 100 Mil with opportunities in value added industries for tanned leather.
- Increasing tanned leather production with wide variety of raw hides suppliers that are qualified for exports to Italy, Spain and many other countries.
- 3 phases covering value chain of leather.
- Full integrated services and separate management within the industrial zone.
- Governmental support and back up for admin documents and licensing.
Due to Egypt’s bilateral, regional and multilateral agreements and partnerships, more than 62 markets in a multiple of countries are easily accessible and facilitated. A 50% cashback incentive on transportation costs to certain countries is also available.
|Trade Agreement||Area/Region/Country||Entry Into Force||No. of Countries|
|Agadir Agreement||Egypt, Jordan, Morocco and Tunisia.||July 2006||4|
|Common Market for Eastern and Southern Africa (COMESA)||Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe.||July 1998||19|
|Egypt-EFTA Agreement||Iceland, Liechtenstein, Norway and Switzerland.||August 2007||5|
|Euro-Med Partnership||The EU and 11 Mediterranean Partners.||June 2004||The EU and 11 Mediterranean Partners.|
|Greater Arab Free Trade Area (GAFTA)||Algeria, Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.||January 1998||17|
|Egypt-Mercosur Free Trade Agreement||Argentina, Brazil, Uruguay, Paraguay, Chile, Bolivia, Ecuador, Colombia, Peru and Venezuela.||January 2013||11|
|Qualifying Industrial Zones (QIZ)||Egypt, Israel and the U.S.||February 2005||3|
|Egypt-Turkey FTA||Turkey||January 2007||2|
|Egypt and China (18 trade and business cooperation agreements)||China||2006 and 2013||2|