EGYPT
Reported in 2020
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Practical or legal restrictions related to the application process for patents
Lack of transparency in patent application process
It is reported that, despite the country's successful reduction of its patent application backlog from ten years to five years, the lack of transparency on patent applications and registrations systems and procedures remains a key concerns for business representatives. It needs continued improvement toward a transparent and reliable patent registration system.
Coverage Horizontal
EGYPT
Since November 2003
Pillar Foreign Direct Investment (FDI) 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)"
Only Egyptian joint-stock companies incorporated in accordance with the Egyptian law can apply and obtain Internet Service Provider (Class A) and Voice Over Internet Protocol (VOIP) Licenses in Egypt. This entails that ISPs and VOIP services of foreign providers with no commercial presence in Egypt and a minimum Egyptian stocks are not permissible in Egypt.
Coverage Telecommunications sector
EGYPT
Reported in 2021
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Nationality/residency requirement for directors or managers
Practice: nationality requirement for senior executives
It is reported that Egypt requires that 60% of senior executives in ICT-related industries should be Egyptian citizens within three years of the startup date of the venture. The relevant regulatory text is not been identified.
Coverage ICT-related industries
EGYPT
N/A
Pillar Foreign Direct Investment (FDI) 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 the 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 the investment in Egypt, except for certain nationalities where the security authorities do not allow for investment before clearance has been obtained. In addition, investment, conducting business, ownership of real estate properties in Sinai by foreigners has 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 the 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 the 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://www.state.gov/reports/2022-investment-climate-statements/egypt/
- https://www.investinegypt.gov.eg/English/Pages/WeCanHelp.aspx#51
- https://resourcehub.bakermckenzie.com/en/resources/global-private-ma-guide-limited/africa/egypt/topics/quick-reference-guide
- https://www.legalmondo.com/product/foreign-direct-investments-egypt/
- https://www.dlapiperintelligence.com/goingglobal/corporate/index.html?t=01-form-of-entity&c=EG
- Show more...
EGYPT
Since October 2017
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Requirement to engage in joint ventures to invest or operate
Prime Ministerial Decree No. 2310 of 2017 promulgating the Executive Regulations
of the Investment Law No. 72 of 2017
of the Investment Law No. 72 of 2017
According to Article 1 of the Ministerial Decree No. 2310 of 2017, there is a joint venture requirement for companies operating in trade sector projects, with possible exceptions for entities operating in remote areas.
Coverage Horizontal
EGYPT
Since August 1981
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Nationality/residency requirement for directors or managers
Companies Law No. 159 of 1981
The Egyptian Companies Law does not set limitations on the number of foreigners, whether shareholders, managers and board members, except for Limited Liability Companies where at least one of the managers should be an Egyptian national.
Coverage Horizontal
EGYPT
Since February 2003
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Law No. 10 of 2003 on Telecommunication Regulations
The Law No. 10 of 2003 sets restrictions on Telecom Egypt, which is the monopoly operator of the fixed internet services and infrastructure market. Art. 63 stipulates that "the shares of Telecom Egypt can be offered for sale at a partial value of the Company capital upon a decree from the Cabinet with the condition that the greater part of the capital remains State-owned".
Coverage Telecom Egypt
EGYPT
Since January 1976, last amended in 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Law No. 34 of 1976: Concerning the Commercial Register
Law No. 34 of 1976 and its amendments of the years 1996 and 2020 stipulate that legal persons (Natural persons and various forms of Companies) wishing to engage in trade activities in Egypt must be entered in the commercial register (Art. 2). Those to be registered must be of Egyptian nationality and have obtained approval to practice trade from the competent Chamber of Commerce (Art. 3). As an exception to the rule in Article 2, foreigners can be registered in the Commercial Register in a number of cases, among these is when the foreigner is a partner in a company of persons, provided that at least one of the general partners is Egyptian and that the Egyptian partner(s) own 51% of the company's capital and has the right to manage and sign (Art. 4.2).
Coverage Trade activities
EGYPT
Since August 2018
Pillar Foreign Direct Investment (FDI) 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
Law No. 180 imposes ownership conditions on foreigners. Art. 36 establishes, in the case of newspapers and websites that act as electronic backers for paper newspapers, that non-Egyptian shareholders, who are natural or legal persons, may not own a percentage of the shares that entitle them to the right of the management.
Coverage Online newspapers
Sources
- https://elpai.idsc.gov.eg/Legislations/Item/281324
- https://wipolex.wipo.int/zh/text/578755
- https://masaar.net/en/legislative-contexts-for-the-passage-of-internet-laws/
- https://www.shandpartners.com/egypts-new-press-and-media-regulation-era/
- https://www.lexology.com/library/detail.aspx?g=eb3ef46e-c072-4fab-bf72-e42933bfae7c
- Show more...
EGYPT
Since August 2018
Since May 2020
Since May 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Law No. 180/2018 Regulating the Press, Media, and the Supreme Council for Media Regulation (SCMR)
Media Licensing Regulation
Media Licensing Regulation
The Media Licensing Regulation, which was published on 13 May 2020 to implement the Media Law, establishes for Egyptian media advertising companies the following:
- non-Egyptians may not hold any majority stake or any other stake that allows them to manage the company;
- incorporation of a company in a form of sole person company, limited liability company or joint-stock company with a minimum authorised capital of 100,000 Egyptian pounds (approx. USD 3,300) for holding websites, 5 million Egyptian pounds (approx. USD 163,000) for general or news television stations, 2 million Egyptian pounds (approx. USD 65,300) for specialised television stations, 15 million Egyptian pounds (approx. USD 490,000) for each broadcasting station and 2.5 million Egyptian pounds (approx. USD 81,600) for each electronic, television station or channel; and
- shareholders must subscribe to at least 35% of the company’s capital.
- non-Egyptians may not hold any majority stake or any other stake that allows them to manage the company;
- incorporation of a company in a form of sole person company, limited liability company or joint-stock company with a minimum authorised capital of 100,000 Egyptian pounds (approx. USD 3,300) for holding websites, 5 million Egyptian pounds (approx. USD 163,000) for general or news television stations, 2 million Egyptian pounds (approx. USD 65,300) for specialised television stations, 15 million Egyptian pounds (approx. USD 490,000) for each broadcasting station and 2.5 million Egyptian pounds (approx. USD 81,600) for each electronic, television station or channel; and
- shareholders must subscribe to at least 35% of the company’s capital.
Coverage Advertising sector
EGYPT
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA)
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 (FDI) 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
Law No. 180 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 an 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, inter alia, 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://masaar.net/en/legislative-contexts-for-the-passage-of-internet-laws/
- https://www.shandpartners.com/egypts-new-press-and-media-regulation-era/
- https://www.lexology.com/library/detail.aspx?g=eb3ef46e-c072-4fab-bf72-e42933bfae7c
- Show more...
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
Art. 35 of Law No. 182 of 2018 accords price preference to products that satisfy the percentage of Egyptian industrial component if its 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
Ministerial Decree No. 656/2015 Promulgating the executive regulation of Law No. 5/2015
Ministerial Decree No. 656/2015 Promulgating the executive regulation of Law No. 5/2015
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
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
Art. 59 of Law No. 182 allows "local tenders" to which only Egyptian companies of a certain governorate can participate. This applies when the total price of the tender does not exceed 2 million Egyptian pounds (approx. 127,000 USD).
Coverage Horizontal