Presidential Directives: Five Years of Tax Exemption and Establishment by Digital Notification for Egyptian Startups

During his visit to Borg El Arab Technological University in Alexandria, President Abdul Fattah El Sisi made an important announcement regarding startups in Egypt. The country has recently unveiled a five-year tax exemption specifically designed to support and encourage startups.

The President has stressed the government's unwavering commitment to aiding and bolstering startups. To meet the production demands of about 150 manufacturers, a substantial annual budget ranging from $24 billion to $30 billion has been allocated.

The President has underscored the importance of conducting feasibility studies for various products to encourage local companies to operate in those sectors, thereby reducing reliance on imports. As an example, he mentioned the shortage of water pumps in the market, despite the presence of five major companies in the field. He expressed full support for startups operating in this domain to address the local market's requirements, especially in sectors like irrigation, agriculture, and housing, which encompass treatment plants and lifting stations.

During the visit, Entlaq’s CEO, Mohamed Ehab highlighted the pivotal role of partnerships between the government, private sector, and startups in driving growth. 

"The Egyptian entrepreneurial ecosystem experiences a growth rate of 50%, it will be possible to establish startups with foreign investments totaling $8 billion by 2030 Over the past five years, investments totaling $1.5 billion have been raised", Ehab added. In line with its commitment to nurturing the Egyptian startup ecosystem, Entlaq has launched the Entrepreneurship Week program.

Furthermore, directives have been issued to facilitate the establishment of companies through digital notification and remove barriers for startups and entrepreneurs. This means that virtual companies can now be established without the need for a physical headquarters, resulting in cost reduction and simplification of the setup process for very small or single-person companies. Additionally, the President emphasized the significance of establishing technology zones for free investments, expanding tax exemptions for startups, and streamlining the import of electronic components for specialized companies.

Various initiatives have also been introduced, such as the "Digital Egypt Initiative," which focuses on top graduates from specialized universities, and the "Digital Egypt Cubs" initiative, which provides ICT sciences training to exceptionally talented school students.