Free zones in Egypt are considered a special investment system governed by the provisions of Investment Law No. 72 of 2017 and its Executive Regulations, which enforcement is overseen by the General Authority for Investment and Free Zones (GAFI).

A free zone is part of the State's territory, located within its borders, which falls under the rule of the state administration. Free zones are governed by special provisions on taxation, customs and finance.

Authorized Activities in Free Zones All types of investment activities are allowed to be exercised inside free zones in accordance with the policy set by GAFI, mainly export-oriented industries, with the exception of the following:

• Weapons, ammunition, explosives and any industry relating to national security.

• Wine and alcoholic beverages.

• Fertilizers.

• Manufacturing of iron and steel.

• Petroleum refining.

• Liquefaction, manufacture and transport of natural gas

• Energy-intensive industries.

Advantages, Guarantees, and Exemptions Granted to Projects

Advantages

1. Free transfer of invested capital and profits abroad.

2. Freedom to select the field of investment and the legal form of projects.

3. Free pricing of products and profit margin.