Egypt Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in egypt, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Licensing Requirements
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Joint Ventures/Licensing

The details of joint venture or licensing agreements between Egyptians and their foreign partners are a matter of mutual agreement, defined by their contract, not by special law. Invested capital may be repatriated without prior approval of the government’s investment authority, the General Authority for Investment and Free Zones (GAFI). Egypt can, and has in the past, restrict foreign investors’ ability to convert local currency into U.S. dollars or Euros, effectively blocking the repatriation of capital. Foreign equity in joint ventures can be as low as a few percentage points, depending upon mutual agreement. Egyptian Law No. 72 of 2017, the Investment Incentives and Guarantees Law, allows foreign investors to own any amount, up to 100 percent, in projects in most sectors. Here are the details:

  • Full Foreign Ownership Permitted: Foreign investors are allowed to own up to 100% of projects in most economic sectors, without the need for an Egyptian partner—with very few exceptions.

  • Sectoral Exceptions: A small number of sectors (e.g., importation for commercial resale, sin products, and some strategic military industries) may have restrictions or require local participation or special approval.

  • Repatriation of Profits: Investors are guaranteed the right to transfer profits and capital freely in and out of Egypt in convertible currencies, as long as the investment complies with Central Bank regulations.

  • Equal Treatment: Foreign investors receive equal treatment to Egyptian nationals, with protections against nationalization, expropriation, and arbitrary government actions.

  • Dispute Resolution: Investors can resolve disputes via local courts, international arbitration, or other dispute resolution mechanisms depending on their agreements.

  • Tax & Customs Incentives: Law 72/2017 provides incentives in designated zones (such as free zones, investment zones, and technological zones) including customs and tax exemptions.

Approval is not required for licensing agreements involving trademarks and technical know-how other than “process secrets.” The U.S.-Egypt Double Taxation Treaty limits the tax on royalty payments to 15 percent of the gross amount of royalty. Numerous government and private companies have licensing agreements with foreign firms under which royalties and other fees are freely transferred abroad pursuant to individual corporate agreements. Examples of licensed production in Egypt include name-brand clothing, personal care products, kitchen utensils, laser alignment equipment and military vehicles.