Egypt new investment law: Food and beverage sector will be of most interest to foreign investors

FILE PHOTO: Employees work with juice and milk products at a Juhayna factory on the outskirts of Cairo, Egypt, May 24, 2016. Picture taken May 24, 2016. REUTERS/Mohamed Abd El Ghany

Egypt’s new investment law aims to attract foreign investors and offers special incentives for companies launching projects in certain regions or industries. These include the food manufacturing sector, which is seen by analysts as both a defensive play – people will always need to eat – and a means to profit from Egypt’s demographics: its 94 million residents make it the most populous nation in the Middle East and North Africa.

The new law, signed by President Abdel Fattah al-Sisi in June, promises to introduce a series of reforms and incentives. These include many measures already included in other legislation and agreements, but incorporating them into a single law is still seen as a significant step.

“The government seems committed to its economic reforms plans, which gives investors confidence when it comes to adherence to the new investment law at least in the medium term,” said Kamila Bolbol, a financial analyst at Cairo’s Sigma Capital. “I believe that the new investment law will not only help attract foreign investments in food manufacturers but also in many other industries.”