Egypt’s cabinet approves new customs, financial zone, mining sector laws

Updated 2/13/2025 4:01:00 PM

Arab Finance: The Egyptian Cabinet has approved several key decisions to enhance customs procedures, regulate central financial zones, and restructure the mining sector, as per a statement.

The move is part of the government's broader strategy to boost economic growth, attract foreign investment, and strengthen key sectors

The cabinet approved measures proposed by the Ministries of Finance and Investment and Foreign Trade to streamline customs procedures and improve the release process for imported goods.

The plan includes further developing the customs system and strengthening export and import control mechanisms.

The cabinet also approved a draft law to regulate central financial and business areas, recognizing their crucial role in economic growth.

The draft law provides a clear legislative framework for establishing these zones, which are designed to create concentrated hubs for financial and non-financial services, attracting global capital and increasing foreign cash flows.

The proposed framework offers guarantees and incentives to investors while granting broad regulatory authority to the General Authority for Central Financial and Business Zones to oversee activities, issue licenses, and ensure compliance.

Development companies will be responsible for growing and managing the zones, assisting the regulatory body in setting internal policies and facilitating licensing procedures.

The draft law includes special provisions for companies focused solely on operating abroad, allowing them to set up headquarters in Egypt while targeting international markets without entering the local market.

Competitive incentives are also offered to attract such businesses in light of regional and global competition.

The cabinet further approved a draft law to establish the Mineral Resources and Mining Industries Authority, replacing the Egyptian Mineral Resources Authority (EMRA).

The new authority will oversee the development of mineral resources and the localization of mining industries to maximize the added value of mineral ores and attract foreign investments.

It will be an independent economic public entity, operating under the jurisdiction of the Ministry Petroleum and Mineral Resources.

Moreover, the cabinet approved the signing of a power purchase agreement between the Egyptian Electricity Transmission Company (EETC) and Saudi Arabia’s ACWA Power for a wind energy project with a capacity of up to 2,000 megawatts.

The project will be developed on land allocated by the New and Renewable Energy Authority (NREA), aligning with the state’s strategy to promote renewable energy production and integrate it into the national grid.

This initiative aims to reduce reliance on fossil fuels and enhance the country’s energy sustainability while attracting foreign investment in the renewable energy sector.