General Authority for Investment and Free Zones (GAFI)

كل عام والشعب المصري بخير بمناسبة الذكرى 72 لثورة 23 يوليو المجيدة..

EGYPT-EU INVESTOR CONFERENCE SESSION REPORT Session Title: Transforming Egypt: Strategic reforms for a nearshoring hub Key Takeaways • Egypt boasts a young and vibrant labor force, with 60-70% of the population under the age of 40 • Egypt's strategic position and abundant renewable energy resources (wind, solar, water) make it an ideal nearshoring destination • The EU-Egypt Strategic and Comprehensive Partnership aims to enhance economic relations and supply chain security, with significant investments earmarked for facilitation • Egypt has a strong industrial base in textiles, home appliances, automobiles, pharmaceuticals, and food, supported by success stories from companies like ElSewedy Electric and Capgemini • The country's young, skilled workforce, with high proficiency in English and other languages, is bolstered by extensive vocational and technical training programs • Stability, predictability, and consistency in policy, along with continued investment in hard and soft infrastructure, are crucial for attracting and retaining investments https://lnkd.in/gF98mPRC

EGYPT-EU INVESTOR CONFERENCE SESSION REPORT Session Title: What’s in it for the private sector in the EGY IMF, EU MFA programs KEY TAKEAWAYS Significance of the EU MFA Program: • The EU MFA program is designed to support economic stability and foster private sector-led growth in Egypt, with a focus on competitive neutrality and structural reforms. IMF Program Reforms: • Key reforms under the IMF program aim to maintain macroeconomic stability, improve the business environment, and attract foreign direct investment through low inflation, exchange rate flexibility, and strong public finances. Implementation of Economic Measures: • The Egyptian government has implemented measures to ensure economic stability, including capping public investment, improving government reporting, and ending preferential lending practices. Macroeconomic Stability: • Reforms introduced since the last IMF review have positively impacted exchange rate stability, inflation reduction, and public debt management, contributing to a more stable economic environment. Coordination of Structural Reforms: • Effective coordination across government entities is essential for the successful implementation of structural reforms, which are necessary for improving the business environment and attracting investment. Factors Attracting Investment: • Macroeconomic stability, legal certainty, a level playing field, and strong institutions are key factors that attract and convince investors to expand operations in Egypt. Youtube Link: https://lnkd.in/dZ9dbR67

EGYPT-EU INVESTOR CONFERENCE  SESSION REPORT  Panel 1: Showcasing Egypt’s reform agenda and investment climate -Key Takeaways Egypt's Readiness for EU Collaboration: • Egypt has established a robust foundation for further collaboration with the EU through comprehensive structural reforms. These reforms have involved government, private sector, and civil society, focusing on industry, agriculture, IT, and communications. • Significant infrastructure investments, including road networks and port development, position Egypt as a logistics hub, enhancing its attractiveness for EU investors. Role of Reforms in Enhancing Egypt's Position: • Reforms aimed at macroeconomic stability, fiscal policies, and liberalizing the currency rate have created a conducive environment for investment. The state's involvement in green and sustainable sectors, offering financial incentives and tax exemptions, further boosts Egypt's appeal. • The EU's commitment of EUR 5 billion in macro-financial assistance underscores the strategic partnership, supporting Egypt's competitiveness, business environment, and green transition initiatives. Promoting EU Investments: • EU investors are encouraged by the positive outcomes of Egypt's reforms, evidenced by increased investments in Egyptian treasury bonds and Euro bonds. The EU partnership also includes significant funding mechanisms such as credit lines and blended finance to reduce costs. • Future opportunities for collaboration include renewable energy projects, digital economy initiatives, and advancements in food and water security technologies. Egypt's strategic location and growing population make it an attractive destination for near-shoring investments. Next Steps in the Partnership: • Continued focus on macroeconomic stability and diversifying the economy to ensure resilience. • Further enhancing the business environment and competitive neutrality for state-owned enterprises to promote private sector growth. • Expanding joint programs with the EU, particularly in green energy and digital sectors, to drive technological advancements and economic growth. Role of International Financial Institutions: • Institutions like the World Bank support Egypt's private sector through diagnostics, financing, and innovative tools such as the unified guarantee platform and crisis response toolkits. These efforts bolster Egypt's economic stability and attractiveness for EU investments.

كل عام وأنتم بخير بمناسبة بداية العام الهجري الجديد

H.E. Minister Hassan El Khatib’s Bio Ministry of Investment and Foreign Trade Hassan El Khatib, the Egyptian Minister of Investment and Foreign Trade, brings a wealth of experience and expertise to his role. With a career spanning over 35 years, he has made significant contributions to private equity, investment management and corporate governance. El Khatib currently serves as a non-executive Board Member of the Central Bank of Egypt and has served as an Independent Board Member of the Sovereign Fund of Egypt from 2019 to 2023. His commitment to economic development is exemplified by his involvement with the Egyptian Prime Minister's Economic Advisory Committee. From 2014 to 2023, he served as Managing Director Equity at the European Bank for Reconstruction and Development (EBRD), managing a portfolio valued at $8-10 billion. He oversaw direct and quasi-equity investments across 38 countries, achieving successful exits exceeding $6 billion and substantial profits for the bank. Prior to his role at EBRD, El Khatib held significant positions in the private equity sector. As Managing Director at the Carlyle Group and as Managing Partner at EFG-Hermes Private Equity. He has contributed his expertise to numerous sectors, including financial institutions, energy, infrastructure, pharmaceuticals, real estate and charity organizations. He is the ex-Chairman of the Egyptian Junior Businessmen Association and the Egyptian Private Equity Association. Additionally, he is the founder and a member of the board of trustees for the Misr ElKheir Foundation, and has been involved with various boards and advisory committees, including the Egyptian Center for Economic Studies and the American Chamber of Commerce in Cairo. El Khatib holds a Master’s degree in Business Administration (MBA) from California State University, Sacramento, where he graduated with highest distinction, and a Bachelor of Science in Civil Structural Engineering from Cairo University. H.E. El Khatib is also a visiting lecturer of the Private Equity Venture Course for Master of Finance Student at Imperial College London.

GAFI CEO Praises Egyptian-European Investment Conference as Exemplary Government-Private Sector Partnership to Boost Investment Mr. Hossam Heiba, GAFI CEO, emphasized that the Egyptian-European Investment Conference stands as a prime example of the government-private sector partnership aimed at attracting investments and advancing the goals of "Egypt Vision 2030" —a comprehensive economic and social development plan. The private sector played a pivotal role in the conference, from sponsorship and financing to the signing of memorandums of understanding and agreements with European counterparts during the conference sessions. Recently, GAFI signed a number of memorandums of understanding with major private sector entities to contribute to promoting investment efforts in Egypt, reflecting the Egyptian government's belief that investors' success stories in the Egyptian market are pivotal in attracting new investments, Mr. Heiba added. He pointed out that aligning efforts between the public and private sectors will lead to unprecedented increases in investment inflows to Egypt in the coming years. Mr. Heiba announced that economic institutions operating in various sectors participated in the conference, such as banking, engineering, information technology, renewable energy, and other dynamic sectors in the Egyptian economy. He added that the participation of several institutions holding the golden license in the conference confirms the huge and growing benefits of this procedural amendment, which grants companies a comprehensive approval encompassing all necessary permits. Additionally, he highlighted these institutions' keen interest in contributing to the support of the Egyptian economy.

The General Authority for Investment and Free Zones (GAFI) reviews Egyptian economic reforms at COMESA Investment Forum in Tunisia. Dr. Dahlia El-Hawary, GAFI CEO Deputy, participated in the COMESA Investment Forum (CIF 2024) organized by the Regional Investment Agency (RIA) of the Common Market for Eastern and Southern Africa (COMESA), for the first time in Tunisia. This falls within the framework of cooperation between GAFI and RIA, where GAFI holds the position of Chair of the COMESA Board for a two-year term since 2023. The forum was attended by representatives from the Tunisian Ministry of Economy and Planning, the Foreign Investment Promotion Agency in Tunisia, investment promotion agencies from the twenty-one COMESA member states, representatives from the European Union and the Organization for Economic Co-operation and Development (OECD), as well as several companies operating in the Tunisian market. On the sidelines of the forum, Dr. Dalia El-Hawary held several meetings with representatives of African investment promotion agencies, accompanied by Ms. Radwa Kamouna, Head of the Central Department of International Relations at GAFI. Discussions focused on cooperation, especially in exchanging experiences and best practices, in addition to effectuating memoranda of understanding signed between GAFI and corresponding investment promotion agencies. Dr. Dalia El-Hawary also met with several companies operating in the Tunisian market, highlighting the efforts made by the Egyptian government to enhance the investment climate, the competitive advantage of investing in Egypt, the Egyptian economic development plan, and the legislative and structural reforms implemented. This includes decisions issued by the Supreme Council for Investment to address challenges facing investors. Additionally, GAFI participated in a field tour at Novation City, which houses multinational companies in the automotive, aviation, and mechatronics sectors.

GAFI CEO: Egyptian Startups are Poised to Expand in the European Market Mr. Hossam Heiba, CEO of the General Authority for Investment and Free Zones, anticipates a very positive future for Egyptian startups. He expects that in the coming years, Egyptian companies will expand into Europe, fueled by the growing interest of European investors in risk capital investments in Egypt. This optimism comes as Egypt's entrepreneurial environment has become more flexible and robust. These statements were made during the "Entrepreneurship" session at the Egyptian-EU Investment Conference. The session was attended by Dr. Amr Talaat, Minister of Communications and Information Technology; Dr. Ayman Ismail, Endowed Chair of Entrepreneurship and associate professor in American University in Cairo; Mr. Mathieu Bousquet, Director of the Unit in the European Commission Directorate General for the Neighbourhood and Enlargement Negotiations; Mr. Mounir Nakhleh, Founder and CEO Halan; Ms. Amal Anan, partner at 500 Global Venture Capital Fund; and Mr. Ibrahim Ramadan, partner at Sawari Ventures. Mr. Heiba emphasized that startups represent the future of the Egyptian economy, offering sustainable opportunities for growth and development. He also highlighted the efforts of the General Authority for Investment and Free Zones – GAFI to support entrepreneurship activities. These efforts include establishing an electronic platform that consolidates all services provided to entrepreneurs, hosting a permanent unit to support emerging companies under the Council of Ministers, and forming an advisory council from the private sector to propose initiatives in support of entrepreneurs. Additionally, initiatives have been launched to provide investment incentives for small and medium-sized enterprises in accordance with the Investment Law. Moreover, GAFI has facilitated the establishment of service companies in free zones to offer outsourcing, information technology services, innovation centers, and data centers. Dr. Amr Talaat outlined the pillars of the state's strategy to bolster entrepreneurship, which include enhancing capabilities across diverse technological domains, equipping startups with essential digital skills, offering training programs for entrepreneurs, incubating entrepreneurial projects within Egypt's digital innovation centers, streamlining procedures for startups’ incorporation, fostering a culture of entrepreneurship among youth, and implementing economic incentive packages to bolster emerging companies. Dr. Talaat emphasized that the Egyptian startups have become more mature and are focused on adding real value to the Egyptian economy. He noted that there is still significant demand in the Egyptian market for electronic applications to develop education, health, and transportation services. https://lnkd.in/dgbHWYKq

Mr. Hossam Heiba, CEO of the General Authority for Investment and Free Zones “GAFI”, participated in a panel discussion entitled “Strategic Reforms to Transform Egypt into a Regional Hub for Investments,” which was held within the events of the EU-Egypt Investment Conference. The panel discussion was attended by Mr. Gert Jan Koopman, Director General of the European Commission, Ms. Susan M. Lund, Vice President for Economics and Private Sector Development at the International Finance Corporation, Ms. Mary Beth Goodman, Deputy Secretary-General of the Organization for Economic Co-operation and Development, Eng. Ahmed Elsewedy, CEO of Elsewedy Electric, and Mr. Aiman Ezzat, CEO of Capgemini Group. Mr. Heiba declared, during his speech, a comprehensive package of reforms and new investment incentives that aim to enhance the investment environment in order to transform Egypt into a hub for regional investments and attract more FDI, especially from EU countries. He reviewed a set of ambitious measures that are taken by Egypt to ensure its position as a leading investment destination in the region, in addition to the reforms that reflect the Egyptian government’s commitment to creating a flexible and efficient business climate that meets the needs of local and international investors alike. He pointed out that among the most prominent reforms are expanding the scope of free zones and investment zones, launching the Golden License framework that simplifies procedures for obtaining licenses and necessary approvals for investment projects, as well as developing a unified electronic platform for companies' incorporation. Additionally, there is a reduction in the required documentation for post-incorporation services. He explained that the government has approved several investment incentives for sectors targeted by the Egyptian state and of interest to European Union investors, such as green hydrogen and automotive industries. GAFI CEO stated that Egypt, with its strategic location, young workforce, and advanced infrastructure, offers promising opportunities for European companies in diverse sectors such as renewable energy, textiles manufacturing, information technology, automotive industry, pharmaceuticals, and food manufacturing. He emphasized that the new reforms undertaken by the Egyptian government will enhance Egypt's attractiveness as a regional investment hub, opening new horizons for economic cooperation between Egypt and the European Union to achieve mutual interests, particularly within the framework of the strategic upgrade of the Egyptian-European partnership, which enhances leveraging Egypt's potential to attract investments and achieve economic integration between Egypt and the European Union. Heiba also emphasized GAFI's keenness to enhance investment cooperation with the European side and provide.... https://lnkd.in/dpz6hYT2