Egypt’s cabinet passes regulations for new investment law

New incentives under the investment law include a 50 percent tax discount on investments made in underdeveloped areas. Above, downtown Cairo. (Reuters)
Updated 17 August 2017
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Egypt’s cabinet passes regulations for new investment law

CAIRO: Egypt’s cabinet passed regulations on Thursday for a new investment law aimed at attracting foreign investors to help the economy recover after a 2011 uprising.
Investment Minister Sahar Nasr said the law will now be passed to Egypt’s administrative court, the state council, which is expected to give a final legal review before the law enters into force.
The law aims to cut bureaucracy, especially for starting projects, and provide more incentives to investors looking to put money into Egypt.
Egypt’s economy has been struggling since the 2011 uprising drove tourists and foreign investors away, drying up foreign currency. Egypt signed a $12 billion International Monetary Fund program last year aimed at reviving the economy.
New incentives under the investment law include a 50 percent tax discount on investments made in underdeveloped areas, and government support for the cost of connecting utilities to new projects.
Under the law, investors can recoup half of what they pay to acquire land for industrial projects if production begins within two years.
It also restores private-sector free zones — areas exempt from taxes and customs — a policy that had held up the law’s passage because of objections to forfeiting tax revenues at a time of austerity.
President Abdel Fattah El-Sisi ratified the long-delayed investment law in June.


‘There is no free lunch’, Macron tells tech giant CEOs

Updated 24 May 2018
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‘There is no free lunch’, Macron tells tech giant CEOs

PARIS: President Emmanuel Macron told executives from the world’s biggest technology firms on Wednesday that he wanted innovation to be a driving force for the French economy, but also that they needed to contribute more to society.
The French leader paints himself as a champion of France’s plugged-in youth and wants to transform France into a “startup nation” that draws higher investments into technology and artificial intelligence. He is also spearheading efforts in Europe to have digital companies pay more tax at source.
Macron’s guest-list included Facebook Inc. Chief Executive Mark Zuckerberg, IBM’s Virginia Rometty, Intel Corp’s Brian Krzanich, Microsoft Corp’s Satya Nadella and a raft of other big hitters in the corporate world.
“There is no free lunch,” he quipped in English to the executives lined up on the steps of the Elysee Palace for a photo call at a lunch meeting. “So I want from you some commitments.”
As Macron spoke, IBM announced it would hire about 1,400 people in France over the next two years in the fields of blockchain and cloud computing.
Ride-hailing app Uber also said it planned to offer all its European drivers an upgraded version of the health insurance it already provides in France in a drive to attract independent workers and fend off criticism over their treatment.
Macron will hold one-on-one talks with Mark Zuckerberg on tax and data privacy on the sidelines of the Tech For Good summit — a day after the Facebook chief executive faced questions from European Union lawmakers.
Those talks will be frank, an Elysee official said ahead of the meeting. While Macron will be pitching France Inc, he will also push his case for a European Union tax on digital turnover and a tougher fight against both data piracy and fake news.
Zuckerberg on Tuesday sailed through a grilling from EU lawmakers about the social network’s data policies, apologizing to leaders of the European Parliament for a massive data leak but dodging numerous questions.
Macron told the executives that business needed to do more in tackling issues such as inequality and climate change.
“It is not possible just to have free riding on one side, when you make a good business,” the French president said.