New point-based residency system for investors


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On the 1st of October 2020, the General Authority for Foreign Investment in Egypt (“GAFI”) issued important rules adopting new “points-based” system for the issuance of residence permits for foreign investors (for up to five continuous years).

The residence permits – according to GAFI’s new rules – can be granted to companies’ shareholders, partners, business owners, board members and managers.

The criteria considered and points calculation for the issuance of residence permits are the following:

  • The scope of activities of the project (score up to 20%).
  • The amount of the paid-in capital of the project (score up to 30%).
  • The number of employees in the project (score up to 30%).
  • The location of the project (score up to 20%).

The new rules adopted by GAFI target projects which work in certain activities including the following:

  • New and renewable energy activities.
  • Heavy industries determined by the Industrial Development Authority (IDA), technology industries (excluding assembly and programming), pharmaceuticals, and food industries.
  • Educational activities (under university education level).
  • Integrated development projects (tourism, manufacturing, agricultural projects).
  • Reclamation and cultivation of lands of not less than 500 feddans.
  • Establishment of hospitals.
  • Tourism activities (i.e. establishment and operation of hotels and tourist resorts with minimum capacity of 500 rooms).
  • Essential utility projects (i.e. water and sewage, electricity, roads, telecommunications and metro lines).
  • Petroleum projects.
  • Integrated water desalination projects.
  • Free zone projects with an export capacity exceeding 80%.

For further inquiries, please feel free to contact our partner, Dr. Eman Riad e.riad@riad.riad.com.

Posted in Articles on Oct 14, 2020