The Egyptian legal system is primarily based on the French civil legal system, various other European codes, and religious law. In practice, religious law is applied only to personal status and family matters which are governed by the religious law of the individual concerned. The fundamental and organic law of Egypt is its constitution, which was passed in a referendum in January 2014 and amended in April 2019.

The Egyptian judiciary is highly independent, and judges are immune to dismissal, subject to no other authority but the law, and equal in rights and duties.

The judicial order under the Egyptian system is outlined below.

Regular Courts

At the apex of the regular judiciary system in Egypt is the Court of Cassation, which was established in 1931 and is based in Cairo. The Court of Cassation is a court of law as opposed to a trial court and guarantees the uniformity and consistency of the implementation and interpretation of the law. Following this are the courts of appeal which have the competence to consider rulings by the courts of first instance falling under their jurisdiction, should these rulings be subject to appeal. Next are the first instance courts, also known as primary courts, which are strategically located in various district capitals. Complementing these are summary courts, which are found in central locations, coastal towns, and even within certain neighbourhoods. These courts’ jurisdictions are determined based on two main factors: the monetary value involved in the legal matter and the specific geographic area over which the court has authority.

State Council

The State Council is an independent judicial body competent to adjudicate administrative disputes and disciplinary proceedings. The judicial section consists of the Supreme Administrative Court, the Administrative Judiciary Court, the administrative courts, the disciplinary courts, and the State Commissioners’ Authority, each competent to consider such submissions in accordance with the law.

The Supreme Constitutional Court

The Supreme Constitutional Court is an autonomous and independent judicial body with its headquarters in Cairo. However, in cases of necessity, it may, upon the approval of its General Assembly, hold its sessions elsewhere in Egypt. The Supreme Constitutional Court is solely competent to decide on the constitutionality of laws and regulations, interpret legislative provisions, and adjudicate on disputes pertaining to the affairs of its members, on jurisdictional disputes between judicial bodies and entities that have judicial jurisdiction, on disputes pertaining to the implementation of two final contradictory judgments, one of which is rendered by a judicial body or an authority with judicial jurisdiction and the other is rendered by another, as well as on disputes pertaining to the execution of its judgments and decisions.

The State Lawsuits Authority

The State Lawsuits Authority is an Egyptian judicial institution that resembles, in respect of competencies, the Attorney General in common law disciplines and particularly the United States Solicitor General.

The Authority represents the interests of the State in a variety of areas before national and international courts and arbitral tribunals. Under the applicable law, the Egyptian State Lawsuits Authority is granted the power to plead on behalf of the State even if the State itself does not wish to do so.

Foreign investments are subject to screening in Egypt based on specific criteria, including the investor’s nationality and the company’s activities, given that activities carried out by non-Egyptian investors, as well as the investor’s nationality, may be restricted by relevant Egyptian laws and may require certain conditions to be met. Therefore, screening must be performed to ensure the satisfaction of these conditions and requirements. It is worth noting that foreign ownership restrictions are applicable in several sectors and locations such as:

• importation activities conducted for resale or trading purposes, noting, however, that these restrictions were recently relaxed – now permitting majority foreign ownership for a period of ten years, subject to renewal pursuant to certain conditions;
• commercial agencies or intermediary businesses; and
• carrying out business in the Sinai Peninsula.

It is worth noting that security clearance must be obtained for any foreigner to work or do business in Egypt. In practice, the General Authority for Investment and Free Zones (GAFI) usually approves changes in shareholding structures and the incorporation of companies without initially requiring a security clearance, with the exception of certain nationalities which are subject to advanced examinations, such as China, Russia, Ukraine, Nigeria, Israel, Iran, Belarus, Bangladesh, Iraq and Palestine, as such restricted nationalities require an advance security clearance. However, GAFI has recently started to relax the conditions of obtaining security clearance prior to incorporation with respect to some nationalities.

Aside from the security clearance, work permits must also be obtained for any foreign employees to be employed by the relevant company.

Prior to engaging in any business in Egypt, upon the incorporation application of the company, or upon the approval of a general assembly meeting for changes in the shareholding structure, a security clearance application is submitted to the relevant authority indicating all relevant data of the foreign investor.

Generally, investing in Egypt without obtaining a security clearance or any other necessary approvals for engaging in business may have legal ramifications, which could include legal penalties such as fines or other sanctions imposed by the relevant regulatory authority, restrictions on business operations and activities through a suspension imposed by the relevant governmental authority and the eventual disruption of any business plans the foreign investor may have made, severe financial losses, and contractual issues where certain contracts may be deemed null and void due to the lack of obtaining the necessary approvals, all of which may result in severe reputational damage to the business.

In certain circumstances, the regulatory authorities may require certain conditions such as:

• a minimum capital for obtaining certain approvals and licences;
• the creation of a minimum number of jobs for Egyptian nationals; and
• requiring foreign investors to use a minimum percentage of local resources in their products.

Foreign investors have the right to appeal and review such decisions by way of referral to an administrative court, which has exclusive oversight over any administrative matter. Further, foreign investors may refer any dispute to international arbitration subject to certain conditions under the relevant Bilateral Investment Treaty (BIT), whereby any award issued in favour of investors will be enforceable vis-à-vis any assets owned by the Egyptian government outside Egypt.

Both the Companies Law and the Trade Code provide several legal forms of business, similar to those legal forms that are available in North America and Europe, such as:

• branch of a foreign company;
• joint stock company (JSC);
• limited liability company (LLC); and
• one-person company (OPC).

The two most common types of companies selected by investors in Egypt are JSCs and LLCs, whereby the capital of a JSC shall be owned by at least three shareholders and constitute a minimum capital of EGP250,000. Whereas, for an LLC the minimum number of partners is two and no minimum capital is required. An LLC is usually the most recommended corporate vehicle because an LLC has a simplified corporate structure compared to a JSC.

However, it is worth noting that depending on the activity of the company, a specific corporate structure may be required for certain activities such as banking activities. Further, depending on the company’s activities, a company may be formed under different laws, such as the Capital Markets Law No 95 of 1992. 

An incorporation application is submitted to the General Authority for Investment and Free Zones (GAFI), which is the regulatory authority overseeing the incorporation of companies in Egypt. Attached to such incorporation applications are a set of documents including corporate documents related to the shareholders or partners, passports of the directors or shareholders, the auditor’s acceptance letter, certificate of non-confusion of the company’s name, bank certificate and the lease agreement of the company’s premises.

The Articles of Association and/or statutes of the company are then issued by GAFI after the provision of the relevant details such as share capital, auditor’s information, address, duration of the company, directors/managers and the company’s commercial register.

The incorporation process may vary depending on the readiness of all necessary documents required to be submitted at the time of incorporation. However, once all documents are ready, the incorporation process usually takes from one to two weeks. However, GAFI offers VIP services for the incorporation process for an additional charge of EGP10,000 (equivalent to approximately USD192).

Foreign investments are subject to review and screening by GAFI. All companies incorporated in Egypt that are entirely or partially owned by non-Egyptian investors (collectively, non-Egyptian-owned companies), regardless of the percentage of the ownership or the applicable legal regime, must regularly submit their Foreign Direct Investment (FDI) Data to GAFI, which includes information on, inter alia, foreign shareholders, corporate and financial information, pursuant to Decree No 2731 of 2019, as follows:

• within 30 days of the incorporation date or the date of any change in the non-Egyptian-owned company’s capital, purpose, shareholding structure or board members (as the case may be);
• within 45 days of the end of each quarter of the calendar year; and
• within four months of the end of the relevant non-Egyptian-owned company’s financial year.

Further, failure to satisfy the FDI requirement will entail a penalty fine of EGP50,000 for non-Egyptian-owned companies, in accordance with the Investment Law No 72 of 2017.

The one-tier management structure, where one governing body is responsible for management and decision-making, is widely considered the most common management structure in Egypt. For example, a JSC primarily consists of the board of directors, which is responsible for overseeing the operations of the company and making major decisions; they are elected or appointed by the shareholders of such company. Further, the executive management may be chaired by a CEO or managing director who is responsible for the day-to-day operations of the company and executing resolutions and decisions taken by the board of directors. Further, the general assembly of the company generally has the authority to elect or dismiss directors, approve financial statements, increase the company’s capital and take other important decisions in relation to the company.

The Companies Law No 159 of 1981, in general, does not recognise the concept of piercing the corporate veil, therefore, the liability of shareholders in a JSC or allotment holders in an LLC is strictly limited to the paid-in capital.

However, the aforementioned rule is subject to certain exceptions, such as if the number of shareholders in a JSC becomes less than three, then the concept of piercing the corporate veil shall apply to the remaining shareholders in a JSC to legitimise their legal status by increasing the number of shareholders to reach the minimum required number.

On 3 May 2025, the New Egyptian Labour Law No 14 of 2025 (the “Labour Law”) was officially published in the Official Gazette. In accordance with its provisions, the Labour Law entered into force on the first day of the month following the lapse of 90 days from the date of its publication (ie, 1 September 2025). The Labour Law replaced the previous Labour Law No 12 of 2003.

Under the Labour Law, any condition or agreement that violates the provisions of the Labour Law and/or derogates from the employee’s rights and entitlements, shall be considered invalid. However, in the event that a rule and/or a stipulation originating either from the employment contract, employment practice, or any other employer resolution or internal work regulation, grant the employee better rights and/or benefits not provided by the provisions of the Labour Law, the said rule and/or stipulation shall remain valid as it provides better benefits in the interests of the employee.

In accordance with the provisions of the Labour Law, an employer must conclude an employment contract with an employee. It must be drafted in Arabic and provided in four identical copies. The employment contract must include the following information:

• start date of the contract;
• employer’s name and place of employment;
• employee’s name, qualifications, profession or craft, social insurance number and residence;
• the nature and type of work to be carried out by the employee;
• agreed salary, method and time of payment; and
• any other benefits, in cash or kind.

Furthermore, according to the Labour Law, the employment contract may be issued in a bilingual format – Arabic and the employee’s native language – provided that the employee is a foreign national and does not speak Arabic. However, in the event of any discrepancy between the two versions, the Arabic text shall prevail.

As stipulated above, the employment contracts shall be made in four counterparts: one retained by the employer, one by the employee, and one submitted to the competent Social Insurance Office, and one copy to be submitted to the competent administrative authority (ie, the Labour Directorate within the employer’s jurisdiction or submitted online via the Directorate’s email).

Pursuant to the Labour Law, in the absence of a written contract, both the employee and employer have the right to prove the employment relationship, its duration, and all associated rights through any means of proof. However, it is worth noting that, in the absence of a written employment contract, there is a presumption that the contract is concluded for an indefinite period.

The employment contract may be concluded for either a definite or indefinite period or for the execution of a specific task or project. Notably, the Labour Law does not determine the maximum or minimum duration of the employment contract.

According to the Labour Law, the maximum applicable working hours of employees shall not exceed eight hours per day or forty-eight hours per week excluding rest breaks. These limits are regulated by public order rules and cannot be superseded or extended by any form of agreement.

The New Labour Law provides that overtime work is only allowed in cases of emergency, unusual and/or exceptional circumstances in work conditions, provided that:

• the employer notifies the competent Labour Office within the employer’s jurisdiction and this shall be certified consequently by the Labour Directorate within seven days of the occurrence of extraordinary work conditions or exceptional circumstances, providing justifications for additional work and the duration of the required work; and
• the total daily working hours shall not exceed twelve hours, and the employees shall be entitled to monetary compensation.

Under the Labour Law, overtime work shall be compensated as follows:

• Overtime During Working Days: In addition to their regular pay, employees are entitled to receive a 35% increase in their salary for overtime during the day, and a 70% increase for overtime hours worked at night.
• Overtime During Weekends: In addition to their regular pay, employees are entitled to an additional 100% of their salary for overtime worked. The employer is also obliged to grant the employee a day off during the following week in place of the lost rest day.
• Overtime During Public Holidays: In addition to their regular pay, employees are entitled to either double their regular pay, or a compensatory day off, subject to a written request submitted by the employee in accordance with the Labour Law.

The Labour Law stipulates that an employee may be dismissed if they commit one of the following acts, which shall be deemed a gross misconduct (“Gross Misconduct”), including, inter alia:

• assumption of a false identity or submission of false documents;
• failure to follow safety instructions;
• disclosure of the secrets of the establishment at which they work, leading to the occurrence of serious damage to the establishment;
• competing with the employer in the same field;
• visible intoxication or being under the influence of drugs during working hours; and
• acts of aggression against the employer or general manager and/or committing serious aggression against any superiors either during work hours or related to work.

The authority to impose the penalty of dismissal lies within the competent labour court.

It is worth noting that the Labour Law stipulates that an employee shall be deemed to have resigned if he or she is absent from work without a legitimate excuse for more than 20 non-consecutive days within one year, or for more than ten consecutive days, provided that the employer, or its representative, has served the employee with a registered notice accompanied by an acknowledgement of receipt following ten days of absence in the first case and five days of absence in the second case.

There are different procedures for terminating employment contracts, depending on whether they are fixed or permanent, which will be further clarified in the following two sections.

Termination of a Fixed-Term Employment Contract

An employer shall not have the right to terminate a fixed-term employment contract prior to its expiry, unless the employee commits a Gross Misconduct. The burden of proof rests with the employer to establish that such misconduct occurred.

As a general rule, the Labour Law provides that the employee shall not have the right to terminate a fixed-term employment contract early except in the following cases:

• If the employee resigns, in which case the resignation must be submitted to the employer, to be duly signed by the employee or their authorised representative, and certified by the competent administrative authority (the Labour Office within the employer’s jurisdiction). The employment relationship will not terminate unless a formal decision of acceptance is issued by the employer.
• If the employment relationship exceeds five years, the employee may have the right to terminate the employment relationship by providing three months’ notice in accordance with the Labour Law.

Where a fixed-term employment contract is terminated prior to the expiry of its term without a legally recognised ground, the assessment of compensation is generally subject to judicial discretion. In practice, courts may award compensation equivalent to the employee’s salary for the remaining term of the contract or such other amount as reflects the actual damages suffered, in accordance with the provisions of the Civil Code.

In addition, under the Labour Law, where an employer terminates a fixed-term employment contract that was concluded or renewed for a period exceeding five years, the employee shall be entitled to a severance gratuity equivalent to one month’s salary for each completed year of service.

Termination of a Permanent Employment Contract

An employer shall not have the right to terminate a permanent employment contract unless the employee commits a Gross Misconduct. The employer has the burden of proving that the employee has committed a Gross Misconduct.

Furthermore, should the employer intend to terminate a permanent employment contract, they are required to provide the employee with notice. The Labour Law establishes a standardised notice period for the termination of permanent contracts, set at three months, irrespective of the employee’s length of service.

According to the Labour Law, if the employer terminates a permanent employment without proof of any Gross Misconduct by the employee, the said employee shall be entitled to compensation equivalent to the salary of at least two months for each year of service in addition to any other financial entitlements (if any).

Employees, under the Labour Law, shall be entitled to terminate the contract if the employer fails to fulfil a significant obligation arising from the Labour Law, the individual or collective employment contract, or the establishment’s regulations. Furthermore, termination is permissible if the employee or their relatives experience assault by the employer or their representatives. In such instances, the termination is regarded as equivalent to dismissal by the employer without just cause. Accordingly, the employee will be entitled to compensation for unfair termination, in addition to other financial entitlements.

Termination of Employment Due to Redundancy or Closure of the Establishment

Under the Labour Law, the employer shall have the right to completely or partially shut down the organisation or reduce its size by terminating the employment contracts of a number of employees to mitigate any economic crisis, provided that (i) a downsizing request is submitted to the competent authority for approval; and (ii) the competent syndication and the employees shall be notified of both the downsizing request and approval.

In this case, a dismissed employee shall be entitled to the following end-of-service indemnity:

• an indemnity equivalent to one month of their salary for the first five years; and
• an indemnity equivalent to one month and a half of their salary for the remaining period.

Should the employer fail to obtain the necessary approval from the competent authorities for the downsizing and proceed to reduce its size by terminating the employment contracts of several employees, those employees shall be entitled to monetary compensation, as such terminations will be considered unfair dismissals.

The Egyptian Trade Union Law No 213 of 2017 grants the employees of an establishment the full right to establish, join or withdraw from a union committee, in accordance with the applicable Egyptian laws and internal regulations of the relevant union committee.

In order for a union committee to acquire legal personality and to be able to exercise its activities, it should be formed of at least 50 employees. As of the date on which the required documents are provided to the relevant administrative authority and provided that the establishment conditions are fully satisfied, the union committee shall be considered to be legally established under the Trade Union Law.

The union committee shall be entitled to directly exercise and manage the following matters with the relevant employer:

• resolving individual and collective disputes relating to their members;
• concluding collective labour agreements at the enterprise level;
• participating with the general trade union in the preparation of draft collective labour agreements, organised primarily under the Labour Law;
• participating in the discussion of projects of the production plans of the facility and assisting in their implementation;
• participating in the implementation, development and/or amendment of internal regulations and guidelines relating to the regulation of labour and employees’ affairs in the establishment;
• implementing the services programmes determined by the general trade union; and
• organising and managing the union committee’s affairs and activities freely, without restriction to this right.

The Egyptian Income Tax Law No 91 of 2005 provides that the monthly gross salaries of employees shall be subject to taxes, to be deducted from each employee’s monthly gross salary, based on the relevant tax brackets of each employee’s annual salary.

Further, in accordance with the Egyptian Social Insurance and Pensions Law No 148 of 2019, all Egyptian entities are required to register with the Social Insurance Authority and insure their employees.

The social insurance contribution’s percentage is 29.75% of the monthly gross salary, capped at EGP16,700, which is required to be paid to the Social Insurance Authority as follows:

• 18.75% of the monthly gross salary shall be borne by the employer; and
• 11% of the monthly gross salary shall be borne by the relevant employee.

Business in Egypt is generally subject to certain taxes such as:

• corporate income tax at approximately 22.5 per cent;
• value-added tax (VAT) on goods and services at a 14 per cent standard rate;
• withholding tax on certain payments to non-residents such as dividends;
• property taxes;
• stamp duty on certain documentation, such as leases and deeds; and
• capital gains tax on general profits from the sale of assets.

Recent amendments were introduced in 2025 to VAT Law No 67 of 2016 (the “VAT Law”) pursuant to Law No 157 of 2025. These amendments introduced new VAT treatments for certain products and services, including changes to the applicable VAT rates and exemptions from VAT for specific products and services.

Such amendments include, inter alia, amendments to the VAT rates applicable to contracting and construction services (ie, supply and installation) and crude oil, as well as VAT exemptions for natural mining and quarry materials in their natural state, excluding crude oil, and donation advertisements for non-profit hospitals and government medical institutes.

Under the Investment Law No 72 of 2017, there are a variety of general tax incentives foreign investors may benefit from, in addition to other additional incentives under the Investment Zones Incentives, such as the free zones or technological zones, which may enjoy certain incentives such as reductions on corporate income tax, custom duties exemption on imported materials and equipment, and reduced VAT rates on certain goods and services. It is worth noting that such incentives vary from one investment zone to the other and the nature of the activities of the business, which shall be confirmed by a local tax adviser.

Additionally, pursuant to the Tax Incentives for Small Businesses Law No 6 of 2025, a number of facilitations and incentives are introduced for small businesses with an annual turnover not exceeding EGP20,000,000. It is important to note that eligibility for these incentives is subject to certain criteria. These incentives may include exemptions and reliefs from stamp taxes, notarisation, and registration fees related to company incorporation contracts, as well as credit facility and mortgage agreements pertinent to the company’s operations. Moreover, the company may benefit from exemptions on capital gains tax as well as taxes on distributable profits. Tax rates applicable to the company are also reduced, and such companies are exempt from the obligation to maintain the records, books, and documents stipulated in the Unified Tax Procedures Law No 206 of 2020.

Tax consolidation is not currently regulated under Egyptian law.

In accordance with the Income Tax Law (as amended), debt interest (interest expenses) paid by legal persons on loans and advances obtained by them is not a deductible cost to the extent that such loans and advances exceed two times the average equity rights as reflected in the financial statements prepared in accordance with Egyptian Accounting Standards.

Debt interest includes all amounts chargeable by the legal person in return for the loans, advances of any kind obtained thereby, bonds and bills. The loans and advances include, for the purposes of this item, bonds and any form of financing by debts through securities with fixed or variable interest. Equity includes the paid-up capital in addition to all reserves and dividends reduced by retained losses, provided that the difference of the adjusted account is not included in the reserves account and is determined to be non-taxable.

However, by way of exception to the above, Law No 30 of 2023 provides that interest on loans and advances obtained by legal persons shall remain deductible where the debt-to-average-equity ratio exceeds 2:1, provided that it does not exceed the applicable threshold prescribed below during the transitional period commencing in 2022 and ending with the close of the 2028 tax year:

• 4:1 for the 2023 tax year;
• 3:1 for the tax years 2024 through 2027; and
• 2:1 for the 2028 tax year.

Under the Income Tax Law, if related companies place conditions in their commercial or financial transactions that differ from those between unrelated companies, that will reduce the tax base or transfer its burden from one taxable company to another exempt or non-taxable company, the Egyptian Tax Authority (ETA) shall be entitled to determine the taxable profit on the basis of the neutral price of the relevant transaction, which shall be deemed transfer pricing of transactions concluded between related companies under common ownership or control.

The ETA shall verify the proper application of neutral price (market price) by related persons in their transactions with respect to the exchange of goods, services, raw materials, capital equipment, the distribution of shared expenses, royalty returns and other commercial or financial transactions that are carried out.

A Transfer Pricing Decree was adopted in 2018 to provide new tax guidelines for cross-border transactions between related companies, requiring the submission of specific documents by the relevant companies.

As a general rule, the Egyptian Unified Tax Procedures Law No 206 of 2020 (“Unified Tax Law”) provides that financiers, taxpayers and others shall abide by specific requirements, including the following:

• notifying of the commencement of the activity and registering with the ETA;
• obligation to keep paper or electronic books and records within the prescribed legal period, and issue tax invoices in accordance with the provisions of laws and regulations;
• enabling the ETA’s employees to perform their duties with regard to the procedures of review, examination, completion and control;
• notifying the ETA of any changes in the activity or establishment within the specified legal period;
• determining the responsible person(s) dealing with the ETA, whether the individual concerned or a legal representative thereof;
• calculating the tax correctly in accordance with the laws and regulations;
• paying tax in the manner and within the time limit specified; and
• including the unified tax registration number in all correspondence and dealings with the ETA or third parties.

Further, legal persons who sell a commodity or provide a service shall register all their purchases and sales of goods and services on the electronic system, in a manner that ensures that the ETA can track the movement of transactions permanently, and determine the size, value, parties involved, and other matters necessary for assessing and collecting the prescribed tax.

Customs and tariffs in Egypt are governed by Law No 207 of 2020 (the “Customs Law”) and Decree No. 218 of 2022 issued by the President of Egypt and amended by Presidential Decree No 67 of 2023 (the “Customs Tariff Decree”). Under the Customs Law, a customs tariff is defined as a table formulated based on the description and classification of goods. It sets forth the application rates of customs duty levied on such goods, in addition to the general interpretative rules governing the application of these duties. Simultaneously, the Customs Tariff Decree sets out the rules, categories, and schedules of the customs tariff, as well as any amendments or cancellations.

According to the Customs Tariff Decree, goods temporarily exported for repair are taxed upon re-import at 10% of the total repair cost, including transport and insurance. Additionally, goods exported for completion of manufacture are taxed upon re-import at the rate applicable to the final product, calculated on the cost of the finishing work plus transport and insurance.

With regard to the tourism sector, hotel and tourism establishments may import equipment and machinery (excluding private passenger cars) at a reduced 20% customs duty or the applicable import tax, whichever is lower, under conditions defined by the Minister of Finance.

According to the Customs Tariff Decree, the following goods benefit from reduced customs duty rates:

• infant formula manufacturers: 2% of the value or the applicable import tax, whichever is lower, on raw materials and inputs;
• Arab Petroleum Pipelines Company: 2% of the value or the applicable import tax, whichever is lower, on imports for projects, including machinery and transport (excluding passenger cars);
• Arab Organization for Industrialization companies: 5% of the value or the applicable import tax, whichever is lower, on components for overhauling locomotive turbine engines;
• electric/clean energy vehicle infrastructure: 2% of the value or the applicable import tax, whichever is lower, on:
1. EV or natural gas refuelling station equipment;
2. EV/gas conversion kits;
3. environmental monitoring equipment; and
4. renewable energy components (wind/solar);
• electric bus manufacturers: 2% of the value or the applicable import tax, whichever is lower, on batteries, electric motors, control units, auxiliary system units, steering units, battery cooling units, and air conditioning devices;
• mobile phone manufacturers: 2% of the value or the applicable import tax, whichever is lower on batteries, speakers, and cameras; and
• natural gas vehicles: 35% reduction on the applicable import tariff.

Incentives for Local Assembly Industries

The Customs Tariff Decree sets out the conditions under which assembly industries may obtain permission to have their assembled products treated under customs supervision, with preferential treatment for customs duties. In this regard, completely disassembled parts imported for industrial assembly under the supervision of the Customs Authority may benefit from a reduced import duty. Specifically, it shall be subject to the customs duty applicable to the complete product, reduced by 10%.

Furthermore, where the local manufacturing component of the product reaches at least 10%, the imported foreign components may be subject to a reduced customs duty – lower than that applicable to fully finished product – based on a graduated scale. This reduction may reach up to 90%, or alternatively, the product may be subject to its individual component duty rates, whichever results in a lower duty. However, this preferential treatment is contingent upon the local manufacturing percentage reaching 60%, a threshold that can be lowered to 40% by virtue of a decision from the Minister of Trade and Industry.

The local manufacturing percentage shall be calculated based on the contribution of the assembly line, as determined by a decision from the Minister of Trade and Industry for each assembly industry individually. This percentage shall be supplemented by the ratio of locally manufactured components to the total complete components constituting the final product, as specified by the General Authority for Industrial Development, in accordance with the project establishment licence issued.

Moreover, the Minister of Finance, upon the request of the Minister of Trade and Industry, may grant companies involved in assembling complex industrial products an advance reduction in customs duties of up to 40%, even prior to the fulfilment of the required local component levels. This preferential treatment is conditional on achieving the stipulated local component within a specified timeframe outlined in their industrial licence.

The General Authority for Industrial Development, in co-ordination with the Customs Authority, shall monitor these companies’ compliance through annual reporting to the Minister of Finance. In the event that a company fails to meet its targeted local component level by year-end, the preferential treatment shall be revoked. Consequently, the company will be reassessed under the standard customs rules. It must also reimburse any resulting financial discrepancies along with statutory interest calculated at the highest applicable legal rate for the period in which the benefit was enjoyed.

With respect to the amendments in late 2022 to the Antitrust Law No 3 of 2005 (the “Antitrust Law”), as amended, the pre-closing clearance for any transaction that constitutes an “economic concentration”, subject to meeting the relevant criteria with respect to financial thresholds, has been newly introduced, replacing the post-notification regime. Under the new amendments, economic concentration is defined as any change of control or material influence as a result of a merger or acquisition or establishment of a joint venture.

In April 2024, the Egyptian Prime Minister issued Decree No 1120 of 2024, issuing the Executive Regulations of the Antitrust Law, whereby the application of the new amendments to the Antitrust Law has been introduced. The Egyptian Competition Authority was granted the authority to review and approve proposed mergers and acquisitions prior to entering into the transaction, provided that the said proposed transaction constitutes an “economic concentration” and meets the relevant criteria with respect to financial thresholds. The new pre-merger control system came into effect as of 1 June 2024.

Further, the Financial Regulatory Authority (FRA) was granted authority to review and approve any proposed mergers and acquisitions prior to their execution, provided that the persons concerned with the transaction exercise one of the activities under the FRA’s supervision, including, inter alia, securities and capital markets activities, insurance, reinsurance or insurance brokerage activities, financial leasing activities, or microfinance activities.

The Antitrust Law primarily governs anti-competitive agreements and monopolistic practices. It prohibits agreements between competitors, or between a party and any of its suppliers or clients, with the purpose of restricting competition such as price fixing and other forms of anti-competitive agreements. The Antitrust Law also sets penalties for any violation under the provisions thereof, such as nullity of certain agreements and fines on a case-by-case basis.

The Antitrust Law addresses the abuse of a dominant position by one entity or more within the market, such as unfair pricing, unwillingness to deal and discrimination.

According to the Intellectual Property Law No 82 of 2002 (the “Intellectual Property Law”), the following conditions must be met for an invention to be granted a patent:

• novelty;
• inventive step; and
• capability of economic exploitation.

The owner of the patented innovation has the right to prohibit others from using, making, selling, or importing the patent commercially once it has been registered. Generally, patent protection is valid for 20 years from the date of filing the application.

According to the Intellectual Property Law, a trademark is a logo, mark, word or any visually perceptible sign that is used by a certain person, company, or group to differentiate their products and/or services from others in the market. In accordance with the Intellectual Property Law, the trademark registration serves simply as a kind of ownership evidence that can be challenged. The first use of the mark in the market establishes ownership of the trademark in accordance with Egyptian law and as established and confirmed by precedent.

According to the Intellectual Property Law, the trademark’s protection period spans ten years, and can be extended for similar durations upon request by the owner during the final year of each protection period, provided that the corresponding registration fee is paid. However, if the owner fails to apply for renewal within six months after the protection period has ended, they can still apply for a renewal by paying the prescribed fee and an additional fee determined by the executive regulations of the Intellectual Property Law, not exceeding EGP500, otherwise the trademark shall be deleted.

According to the Intellectual Property Law, an industrial design is any arrangement of lines and each stereoscopic shape, with or without colours if it takes a distinctive appearance characterised by novelty and capable of industrial use. The Intellectual Property Law provides that the period of protection of the industrial design or model is ten years starting from the date of submitting the application for registration in Egypt. Protection is renewed for another five years if the owner of the design or model submits an application for renewal within the final year of the term. However, the owner has the right to apply for renewal within three months following the date of expiry of the protection period, otherwise the registration shall be cancelled.

The Intellectual Property Law stipulates that the registration of the industrial design or model grants the owners exclusive rights to prevent others from manufacturing, selling, or importing products that take the form of such design or model or include it. The right to prevent third parties from importing, selling, or distributing the aforementioned products shall be exhausted if the owner markets those products in any country or licences others to do so.

Copyright constitutes the rights granted to authors and artists regarding their creative works under the Intellectual Property Law. A variety of works are protected by copyright under the aforementioned Law, including computer software, databases, advertisements, geographic maps, and technical drawings in addition to books, music, oil paintings, sculptures, and films. Copyright protection extends only to expressions and not to ideas, procedures, and methods of operation or mathematical concepts.

Moreover, there are neighbouring rights which are known as copyright-associated rights, and which enable innovators to spread their ideas and publish their works by providing performers, sound recording companies, and broadcasting organisations with legal protection. The protection of copyright and related rights extends to Egyptians and foreigners, both natural and legal persons, belonging to one of the member states of the World Trade Organisation (WTO). Under the aforementioned article, protection is granted:

• for performers: if one of the following conditions is met:
1. if the performance takes place in a member state of the WTO;
2. if the performance is captured in sound recordings, the producer of which belongs to a member state of the WTO, or the sound is first recorded in the territory of a member state of the WTO.
3. if the performance is broadcast by a broadcasting organisation based in a member state of the WTO, and the broadcast is broadcast from a transmitter also located in a member state of the WTO.
• for producers of phonograms: if the sound is first recorded in a member state of the WTO; and
• for broadcasting organisations: if the headquarters of the broadcasting organisation is located in the territory of a member state of the WTO, and the broadcasting programme has been broadcast from a transmitter also located in the territory of a member state of the WTO.

It is worth noting that plant varieties developed in Egypt or abroad, whether they are obtained in a biological or non-biological manner, shall enjoy protection in accordance with the provisions of the Intellectual Property Law upon their registration in the register of plant varieties that grant the right of protection. In order to enjoy protection, the variety must be characterised by novelty, distinction, homogeneity, and stability, and bear its own name. The Intellectual Property Law stipulates that the period of protection of plant varieties shall be 25 years for trees and grapes, and 20 years for other agricultural crops.

Further, undisclosed information shall be protected in accordance with the provisions of the Intellectual Property Law, provided that the following conditions are met:

• the information is confidential in nature, such that the details of the information or its composite components are not widely known or circulated among individuals in the specific industrial sector related to the information;
• its commercial value is derived from its confidential status; and
• its confidentiality relies on the effective measures undertaken by its lawful owner to maintain it.

The general laws regulating data protection in Egypt are the Constitution, the Penal Code No 58 of 1937, and the Anti-Cybercrime Law No 175 of 2018 (“Cybercrime Law”). It is worth noting that the main legislation governing personal data is the Data Protection Law No 151 of 2020 (“Data Protection Law”) which applies to any personal data that is subject to any electronic processing whether partially or entirely, with the exception of certain data that is processed by the Central Bank of Egypt.

The Data Protection Law prohibits personal data from being collected, processed, or disclosed by any means except with the explicit consent of the data subject. Further, the Data Protection Law places restrictions and conditions on the transfer of any “personal data” abroad, which is subject to a licence from the Data Protection Centre (DPC) and a certain level of protection not less than the one provided for under the Data Protection Law.

On 1 November 2025, the Executive Regulations of the Data Protection Law were published in the Official Gazette and made available to the public around 25 December 2025. Persons subject to the Data Protection Law are granted a grace period of one year as of the issuance date thereof to legitimise their position with the Executive Regulations.

The Data Protection Law applies to any processor, controller or handler, whether corporate or natural, who breaches the Data Protection Law if they are:

• an Egyptian national inside or outside Egypt;
• a non-Egyptian residing within Egypt; or
• a non-Egyptian outside Egypt if the act is punishable in any form in the country where it occurred and the data subject who is affected by the breach is an Egyptian national or a non-Egyptian residing in Egypt.

The DPC is the regulatory authority empowered by virtue of the Data Protection Law to oversee and enforce the Data Protection Law, including the issuance of required licences, authorisations and certifications in accordance with the Data Protection Law.

In early April 2026, the Senate approved a draft new Antitrust Law introducing amendments to the current Antitrust Law, which has been approved in principle by the House of Representatives. This new Antitrust Law is expected to be issued soon, to replace the current Antitrust Law. The key amendments to be made include, inter alia, transferring the affiliation of the Egyptian Competition Authority (ECA) so that it becomes an independent regulatory body with a public legal personality, reporting directly to the President of the Republic rather than the Prime Minister. Further, the new draft grants the ECA the power to impose administrative financial sanctions without having to obtain a court ruling. 

With respect to the Labour Law, it is worth noting that ministerial decrees further regulating certain employment-related matters are still pending issuance, including, inter alia, decrees relating to work and sanctions regulations and occupational health and safety.

Furthermore, it is worth noting that it has been reported that the Egyptian government is currently in the process of preparing an all-new Arbitration Law that will be proposed to the Egyptian House of Representatives.