Egyptian startups are relocating abroad due to a lack of sufficient foreign capital and bureaucratic obstacles.
To prevent this and attract various regional investors, the government is simplifying regulations, providing customs exemptions, and accelerating licensing procedures.
However, it is still difficult to say whether these measures will be sufficient.
GAFI’s New Free Zone Policy
The General Authority for Investment and Free Zones (GAFI) has announced that startups will be allowed to establish their headquarters in designated free zones.
Among these startups, those focused on artificial intelligence and software exports will be given priority.
Startups that qualify for this opportunity will receive full tax and customs exemptions, simplified business setup processes, and access to various support services such as legal, consulting, and marketing assistance.
Learning from Regional Success Stories
Countries like the UAE, Morocco, and Bahrain have previously adopted this approach and benefited significantly.
Egypt is aiming to become a major hub for tech entrepreneurship by modeling its strategy on these successful examples.
Why Free Zones Matter for Startups
Free zones are areas where companies benefit from special economic rules, including lower taxes, streamlined import-export procedures, and reduced bureaucracy.
For startups, these zones help lower operational costs and facilitate access to international markets.
Focus on High-Tech Innovation Sectors
Egypt plans to allocate approximately 9,000 square meters of space to startups operating in fields such as artificial intelligence, financial technologies, and software development.
GAFI Chairman Hossam Heiba stated that this initiative is actually part of a broader plan to support entrepreneurship in the country.