ARTICLE
12 January 2024

Establishing A Project In The Suez Canal Economic Zone (SCZone)

YS
Youssry Saleh & Partners
Contributor
Youssry Saleh Law Firm, established in 1985 is a full-service law firm in Egypt, which has gained a strong reputation for supporting businesses in a wide range of industries as well as helping individual clients. Today, the law Firm provides integrated service to the clients throughout the Middle East, helping them cover their current business needs and requirements. The Firm also represents its clients in locations that their businesses take them to as well as SMEs (small/medium enterprises) in emerging industries and markets. Youssry Saleh Law Firm, founded and led by Mr. Youssry Saleh, an experienced Supreme Court attorney-at-law, offers a well-structured, cross-disciplinary team of experienced attorneys who create synergy and provide our clients with needed depth of knowledge, breadth of experience and responsive service, so critical for the resolution of clients’ issues and meeting key business objectives.
Foreign investors enjoy the right to full ownership of companies established in the SCZone, fostering unfettered control over business operations.
Egypt Strategy
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The Suez Canal Economic Zone (SCZone), a strategic economic hub in Egypt, offers a plethora of opportunities for businesses seeking to expand their operations and tap into the region's dynamic growth. To establish a project in the SCZone, investors can capitalize on a range of privileges and incentives while exploring diverse industries that align with the zone's strategic focus.

-Privileges and Incentives for SCZone Investors

The SCZone provides a compelling package of privileges and incentives to attract and retain investors, including:

  1. 100% Foreign Ownership:

Foreign investors enjoy the right to full ownership of companies established in the SCZone, fostering unfettered control over business operations.

  1. Tax Exemptions:

Companies operating in the SCZone benefit from exemptions from customs duties, income taxes, and stamp duties for the first five years, and reduced rates for subsequent years.

  1. Land Allocation:

The SCZone Authority allocates land at competitive rates, ensuring access to suitable sites for industrial, commercial, or residential projects.

  1. One-Stop Shop Services:

The SCZone Authority provides streamlined one-stop-shop services, facilitating quick and efficient company registration, licensing, and permit approvals.

  1. Infrastructure and Utilities:

The SCZone boasts world-class infrastructure, including roads, railways, ports, and power and water desalination plants, ensuring seamless operations.

-Industries with Promising Potential in the SCZone

The SCZone prioritizes several industries that align with Egypt's economic development goals and leverage the zone's strategic advantages, including:

  1. Manufacturing:

The SCZone offers a conducive environment for manufacturing industries, particularly those focused on pharmaceuticals, electronics, food processing, and textiles.

  1. Logistics and Supply Chain:

With its proximity to the Suez Canal and well-developed transportation networks, the SCZone serves as a strategic hub for logistics and supply chain management.

  1. Renewable Energy:

Egypt's abundant renewable energy potential makes the SCZone an attractive location for solar and wind energy projects.

  1. Tourism and Hospitality:

The SCZone's proximity to iconic attractions and its potential for coastal development make it an appealing destination for tourism and hospitality investments.

  1. Information Technology and Communications:

The SCZone is fostering a vibrant IT and communications sector, catering to the growing demand for digital solutions.

-Process for Establishing a Project in the SCZone

  1. Establish a company in the SCZone:

The companies wishing to establish a project must prepare a feasibility study for the project that includes all the financial and technical aspects to be submitted to the SCZone to obtain approval to establish a project within SCZone. After obtaining approval and establishing the company, we move to the next step.

  1. Obtaining Licenses and Permits:

Secure the required licenses and permits for your specific project activities from the relevant SCZone authorities.

  1. Land Allocation:

Apply for land allocation through the SCZone Authority, specifying your project's land requirements and purpose of use.

  1. Project Implementation:

Commence project implementation, adhering to SCZone regulations and environmental standards.

  1. Operational Commencement:

Upon completion of project construction and obtaining necessary approvals, initiate operations within the SCZone.

The Suez Canal Economic Zone presents a compelling destination for businesses seeking to expand their operations and capitalize on Egypt's promising economic growth. With its investor-friendly environment, diverse industry potential, and streamlined project establishment process, the SCZone offers a gateway to sustainable success in the region.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
12 January 2024

Establishing A Project In The Suez Canal Economic Zone (SCZone)

Egypt Strategy
Contributor
Youssry Saleh Law Firm, established in 1985 is a full-service law firm in Egypt, which has gained a strong reputation for supporting businesses in a wide range of industries as well as helping individual clients. Today, the law Firm provides integrated service to the clients throughout the Middle East, helping them cover their current business needs and requirements. The Firm also represents its clients in locations that their businesses take them to as well as SMEs (small/medium enterprises) in emerging industries and markets. Youssry Saleh Law Firm, founded and led by Mr. Youssry Saleh, an experienced Supreme Court attorney-at-law, offers a well-structured, cross-disciplinary team of experienced attorneys who create synergy and provide our clients with needed depth of knowledge, breadth of experience and responsive service, so critical for the resolution of clients’ issues and meeting key business objectives.
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