Tax Exemptions for Investments in Upper Egypt
Investment Law No. 72 of 2017
Upper Egypt is considered one of the core administrative and traditional regions in the Arab Republic of Egypt. It extends from the southern part of Cairo all the way to Sudan and is often referred to as the “Upper” or “Southern” Egypt due to its higher elevation compared to the Nile Valley. It is characterized by its unique geographical and cultural features within its society.
Upper Egypt is divided into three regions:
• Northern Upper Egypt: Including the governorates of Fayoum, Beni Suef, and Minya.
• Northern Upper Egypt: Including the governorates of Fayoum, Beni Suef, and Minya.
• Northern Upper Egypt: Including the governorates of Fayoum, Beni Suef, and Minya.
In the past, Upper Egypt faced marginalization and a lack of infrastructure projects in its villages, with insufficient attention to basic infrastructure development.
However, since June 2013, the state has worked towards achieving comprehensive development in education, social services, and healthcare at all levels. The value of investments in national projects amounted to approximately 350 billion Egyptian pounds between 2014 and 2021.
The state has also played a major role as a main financier in several projects to promote industry in the south and provide sustainable employment opportunities for the population.
On the other hand, the state has introduced legislative programs to attract private sector investments. The Investment Law No. 72 of 2017 was issued, granting investment projects established after the enforcement of this law in Upper Egypt an investment incentive of a “deduction from the net taxable profits” at a rate of 50% of the investment costs for a period of seven years from the date of commencing business activities.
To conclude, this article aims to highlight that the Egyptian government is strongly committed to the development of Upper Egypt through the establishment of national projects, basic infrastructure development, and legislative incentives to encourage private investment in the region. This aims to achieve sustainable development for the population in Upper Egypt and encourage reverse migration from Cairo and the Delta to the Upper Egypt governorates.
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