Egyptian investment law aimed at reviving the country's economy and attracting foreign investors will be sent to the cabinet on Dec. 14, state news agency MENA reported on Sunday.
Egypt is trying to recover economically after a popular uprising in 2011 drove away tourists and foreign investors, key sources of hard currency.
The government first approved an investment law in March 2015 aimed at bolstering investor confidence, eliminating bureaucracy, easing the procedures to obtain licences for projects and attracting foreign investment.It then amended the law a year ago.
Foreign direct investment in Egypt has been gradually increasing and in the 2015/16 financial year reached around $6.84 billion, up from $6.38 billion in the previous year.
As a recall, Egypt's cabinet also approved a draft law on investment last year aimed at making deals less vulnerable to legal disputes or changes in government, and reducing stifling bureaucracy.
The government is seeking to address foreign business concerns before an investment conference in Sharm el-Sheikh set for mid-March, when Egypt hopes to secure domestic and foreign investment of up to $12 billion.
Announcing the new law, Prime Minister Ibrahim Mehleb said in a statement the government held discussions with investors, an industry association, law advisors and members of civil society when drawing up the legislation.
It will now be referred to President Abdel Fattah al-Sisi, who is expected to ratify it.
"If it hadn't been for this law, there would be no Sharm el-Sheikh conference. It will be the main focus of the conference," said Mohsen Adel, deputy head of the Egyptian Association for Financing and Investment.
One of the most important elements of the law is the imposition of punishments on the company and the guilty employee, as opposed to the previous practice of often making top executives responsible for violations committed by staffers.
The law provides certain guarantees including for deals signed with governments, and allows for incentives to encourage the funding of labour-intensive projects.
Sisi, often criticised for a security crackdown against his political opponents, has embarked on a series of economic reforms since taking office last year that have won praise from investors traditionally wary of plunging cash into Egypt.
Investment Minister Ashraf Salman told Reuters in January that the new law was critical to winning the confidence of foreign investors who currently must secure permits from 78 government agencies to start a company in Egypt -- a process that can take up to five years.
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