New point-based residency system for investors
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.