EGYPT
Since 1981
Pillar Foreign Direct Investment in sectors relevant to digital trade |
Sub-pillar Nationality/residency requirement for directors or managers
Law No. 159/198 on Joint Stock Companies, Partnerships Limited by Shares & Limited Liability Companies
Law No. 159/198 mandates that a minimum of two members of a company’s board of directors must be nationals. Reports indicate that this requirement extends across various sectors, including computer and related services, telecommunications, and internet services. Art. 181 stipulates that the Government must be represented by at least two members on the administrative boards of companies for which it guarantees a minimum level of profits.
Coverage Horizontal
Sources
- https://web.archive.org/web/20221021225036/https://www.gafi.gov.eg/English/StartaBusiness/Laws-and-Regulations/Documents/Lawno159oftheyear1981.pdf
- https://itip-services-worldbank.wto.org/DetailView.aspx?id=3074958&id2=&id3=&sPath=0000100014&mzMode=Modes3
- https://web.archive.org/web/20241203173812/https://manshurat.org/file/41672/download?token=Jfwns5WY
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EGYPT
Since 1982
Pillar Foreign Direct Investment in sectors relevant to digital trade |
Sub-pillar Nationality/residency requirement for directors or managers
Executive Regulations of the Joint Stock Companies, Limited Partnerships and Limited Liability Companies Law No. 159 of 1981
(اللائحة التنفيذية لقانون الشركات المساهمة وشركات التوصية بالاسهم والشركات ذات المسئولية رقم 159 لسنة 1981)
(اللائحة التنفيذية لقانون الشركات المساهمة وشركات التوصية بالاسهم والشركات ذات المسئولية رقم 159 لسنة 1981)
According to Art. 281 of the Executive regulations of the Companies Law, at least one manager of a limited liability company must be a national.
Coverage Horizontal
Sources
- https://web.archive.org/web/20241203174126/https://manshurat.org/file/799/download?token=0QrNgH57
- https://web.archive.org/web/20220307175321/https://www.gafi.gov.eg/English/StartaBusiness/Laws-and-Regulations/PublishingImages/Pages/BusinessLaws/chinese%20implementing%20regulations.pdf
- https://itip-services-worldbank.wto.org/DetailView.aspx?id=2268518&id2=&id3=&sPath=000021090010903&mzMode=Modes3
- https://web.archive.org/web/20231122083928/https://www.state.gov/reports/2023-investment-climate-statements/egypt/
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EGYPT
Reported in 2018, last reported in 2023
Pillar Foreign Direct Investment in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Complaints of lengthy security screening
As a general rule, a foreign investor must apply for a security clearance as part of the procedure for investing in Egypt or setting up a company. Among the procedures and steps to be followed and documents required in the incorporation of companies and establishments, in accordance with Investment Law No. 72 of 2017 and Law No. 159 of 1981, are forms of the security background check for foreign founders or partners. Submission of the form in itself does not hinder investment in Egypt, except for certain nationalities where the security authorities do not allow for investment before clearance has been obtained. In addition, foreigners' investment, conducting business, and ownership of real estate properties in Sinai have some security-related restrictions, whereby the prior approval of the Sinai Development Authority is required.
It is reported that the security screening process is often lengthy, although companies are able to operate while they wait for approval. However, if the firm is rejected, it must cease operations and undergo a lengthy appeals process. Businesses have cited instances where Egyptian clients were hesitant to conclude long-term business contracts with foreign businesses that have yet to receive a security clearance. They have also expressed concern about seemingly arbitrary refusals, a lack of explanation when a security clearance is not issued, and the lengthy appeals process.
It is reported that the security screening process is often lengthy, although companies are able to operate while they wait for approval. However, if the firm is rejected, it must cease operations and undergo a lengthy appeals process. Businesses have cited instances where Egyptian clients were hesitant to conclude long-term business contracts with foreign businesses that have yet to receive a security clearance. They have also expressed concern about seemingly arbitrary refusals, a lack of explanation when a security clearance is not issued, and the lengthy appeals process.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231122083928/https://www.state.gov/reports/2023-investment-climate-statements/egypt/
- https://www.investinegypt.gov.eg/English/Pages/WeCanHelp.aspx#51
- https://web.archive.org/web/20241203175347/https://resourcehub.bakermckenzie.com/en/resources/global-private-ma-guide-limited/emea/egypt/topics/quick-reference-guide
- https://web.archive.org/web/20220630162307/https://www.legalmondo.com/product/foreign-direct-investments-egypt/
- https://web.archive.org/web/20241203175725/https://www.dlapiperintelligence.com/goingglobal/corporate/index.html?t=01-form-of-entity&c=EG
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EGYPT
Since February 2003
Pillar Foreign Direct Investment in sectors relevant to digital trade |
Sub-pillar Commercial presence requirement for digital services providers
Egypt National Telecom Regulatory Authority (NTRA)'s "Terms and Conditions Needed For the Award of A License To Provide Internet Connectivity Services (Class A) and VoIP Services in Arab Republic of Egypt (A.R.E)"
(اإلجراءات و القواعد و الشروط الالزمة للحصول على تر اخيص إل نشاء شبكات االتصاالت و تقديم خدمات االتصاالت داخل جمهورية مصر العربية)
(اإلجراءات و القواعد و الشروط الالزمة للحصول على تر اخيص إل نشاء شبكات االتصاالت و تقديم خدمات االتصاالت داخل جمهورية مصر العربية)
Only Egyptian joint-stock companies incorporated in accordance with Egyptian law can apply for and obtain Internet Service Provider (Class A) and Voice Over Internet Protocol (VOIP) Licenses in Egypt. This means that ISPs and VOIP services of foreign providers with no commercial presence in Egypt and minimum Egyptian stocks are not permissible in Egypt.
Coverage Telecommunications sector
EGYPT
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
1.52%
Coverage rate of zero-tariffs on ICT goods (%)
69.84%
Coverage: Digital goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
EGYPT
Since August 2003
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Practical or legal restrictions related to the application process for patents
Resolution of the Council of Ministers No. 1366 of 2003 Issuing Executive Regulations for Law No. 82 of 2002 on the Protection of Intellectual Property Rights
(قرار رئيس مجلس الوزراء رقم 1366 لسنة 2003، مصر بإصدار اللائحة التنفيذية للكتب الأول والثاني والرابع من قانون حماية حقوق الملكية الفكرية الصادر بالقانون رقم 82 لسنة 2002)
(قرار رئيس مجلس الوزراء رقم 1366 لسنة 2003، مصر بإصدار اللائحة التنفيذية للكتب الأول والثاني والرابع من قانون حماية حقوق الملكية الفكرية الصادر بالقانون رقم 82 لسنة 2002)
Art. 52 of Egypt Implementing Regulations for Law No. 82 of 2002 on the Protection of Intellectual Property Rights requires an applicant who is not a resident of the Arab Republic of Egypt to appoint an Egyptian patent agent to whom all notifications, documentation, and submissions provided for under the Law or these Regulations shall be sent.
Coverage Horizontal
EGYPT
N/A
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in Information Technology Agreement Expansion Agreement (ITA II)
Egypt is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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EGYPT
Reported in 2020, last reported in 2023
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Practical or legal restrictions related to the enforcement of patents
Enforcement issues on patents
While it is reported that Egypt is striving to strengthen intellectual property (IP) protection and enforcement to counter cases of piracy and reduce patent backlogs, there are also concerns about the lack of an effective mechanism for the early resolution of potential patent disputes.
Coverage Horizontal
EGYPT
Since October 2018
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Law No. 182 of 2018: Regulating Contracts Concluded by Public Entities
(قانون رقم ١٨٢ لسنة ٢٠١٨ بإصدار قانون تنظيم التعاقدات التي تبرمها الجهات العامة)
(قانون رقم ١٨٢ لسنة ٢٠١٨ بإصدار قانون تنظيم التعاقدات التي تبرمها الجهات العامة)
According to Art. 75 of Law No. 182 of 2018, small and medium-sized enterprises (SMEs) in Egypt are entitled to secure at least 20% of available government contracts annually. This right was also established under the previous legislation, Tenders Law No. 89 of 1998.
Coverage Horizontal
EGYPT
Since September 2003
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Participation in the Patent Cooperation Treaty
Patent Cooperation Treaty (PCT)
Egypt is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
EGYPT
Since October 2018
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Law No. 182 of 2018: Regulating Contracts Concluded by Public Entities
(قانون رقم ١٨٢ لسنة ٢٠١٨ بإصدار قانون تنظيم التعاقدات التي تبرمها الجهات العامة)
(قانون رقم ١٨٢ لسنة ٢٠١٨ بإصدار قانون تنظيم التعاقدات التي تبرمها الجهات العامة)
Art. 59 of Law No. 182 of 2018 allows "local tenders" in which only Egyptian companies of a certain governorate can participate. This applies when the total price of the tender does not exceed EGP 2 million (approx. 127,000 USD).
Coverage Horizontal
EGYPT
Since October 2018
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Law No. 182 of 2018: Regulating Contracts Concluded by Public Entities
(قانون رقم ١٨٢ لسنة ٢٠١٨ بإصدار قانون تنظيم التعاقدات التي تبرمها الجهات العامة)
(قانون رقم ١٨٢ لسنة ٢٠١٨ بإصدار قانون تنظيم التعاقدات التي تبرمها الجهات العامة)
Art. 35 of Law No. 182 of 2018 accords price preference to products that satisfy the percentage of Egyptian industrial components if their value exceeds that of the lowest unsatisfying product within the maximum of 15%. The article also stipulates that the bid submitted for services or technical works shall be considered the lowest price if its value is 15% (or less) higher than the value of the lowest foreign bid.
Coverage Horizontal
EGYPT
Since January 2015
Since September 2015
Since September 2015
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Law No. 5 of 2015 Concerning the Preference of Egyptian Products in Government Contracts
(قانون تفضيل المنتجات المصرية في العقود الحكومية رقم 5 لسنة 2015)
Ministerial Decree No. 656/2015 Promulgating the executive regulation of Law No. 5/2015
(قرار وزير التجارة والصناعة رقــم 656 لسنة 2015 — شأن إصدار اللائحة التنفيذية للقانون رقم 5 لسنة 2015 في شأن تفضيل المنتجات المصرية في العقود الحكومية.)
(قانون تفضيل المنتجات المصرية في العقود الحكومية رقم 5 لسنة 2015)
Ministerial Decree No. 656/2015 Promulgating the executive regulation of Law No. 5/2015
(قرار وزير التجارة والصناعة رقــم 656 لسنة 2015 — شأن إصدار اللائحة التنفيذية للقانون رقم 5 لسنة 2015 في شأن تفضيل المنتجات المصرية في العقود الحكومية.)
A preference for Egyptian Industrial Products in Government contracts for projects is applied by concerned entities according to Law No. 5 of 2015 Concerning the Preference of Egyptian Products in Government Contracts (Art. 3) and is operationalised by the Ministerial Decree No. 656/2015 (Chapter 2, Art. 2). They require concerned Governmental entities to include a clause in project proposals and contracts that obliges bidders and contractual parties to ensure that the Egyptian industrial content is not less than 40% of the overall value of the offer or contract.
Coverage Horizontal
EGYPT
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Egypt is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA), nor does it have observer status.
Coverage Horizontal
EGYPT
Since August 2018
Pillar Foreign Direct Investment in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Law No. 180 of 2018 Regulating the Press, Media, and the Supreme Council for Media Regulation
(قانون 180 لسنة 2018 بشأن تنظيم الصحافة والإعلام والمجلس الأعلى لتنظيم الإعلام)
(قانون 180 لسنة 2018 بشأن تنظيم الصحافة والإعلام والمجلس الأعلى لتنظيم الإعلام)
Law No. 180 of 2018 imposes ownership conditions on foreigners. Art. 52 provides, with respect to media and websites that act as electronic backers for media outlets and websites in general, that non-Egyptian shareholders, who are natural or legal persons, may not own a majority of the shares or grant them the right of the management. The term “media” is defined as “any terrestrial or satellite television channel, or wired, wireless or electronic radio station”. Non-Egyptian providers may be licensed to operate in Egypt, provided approval is obtained from the Supreme Council for Media Regulation (SCoM). This approval requires operating inside a specific media area and the ability to block any content involving, among other things, violence, suicide, self-injury or nudity.
Coverage Online media
Sources
- https://elpai.idsc.gov.eg/Legislations/Item/281324
- https://wipolex.wipo.int/zh/text/578755
- https://web.archive.org/web/20231129025207/https://masaar.net/en/legislative-contexts-for-the-passage-of-internet-laws/
- https://web.archive.org/web/20241003090933/https://www.shandpartners.com/egypts-new-press-and-media-regulation-era/
- https://web.archive.org/web/20241203165637/https://www.lexology.com/library/detail.aspx?g=eb3ef46e-c072-4fab-bf72-e42933bfae7c
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