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.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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