Egypt is set to significantly enhance its startup ecosystem by providing dedicated, fully-equipped administrative headquarters within its free zones. Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), announced that the first phase of this initiative will be operational in Cairo’s Nasr City free zone within the next six months, offering startups unprecedented access to tax exemptions and streamlined operations.
A Strategic Rollout Across Egypt
The initiative will initially launch within a 9,000-square-meter facility in the Nasr City free zone, specifically targeting startups in high-growth sectors like software exporting and artificial intelligence applications. To foster a complete support system, the hubs will also house essential private sector service providers, including consulting, marketing, and legal firms, aimed at boosting the success rates of startups looking to scale and enter foreign markets.
Following the Cairo launch, GAFI plans to allocate similar spaces in the Alexandria free zone before expanding the model to its other free zones across the country. The core objective is to allow a greater number of startups to leverage the key advantages of operating within a free zone, which include simplified procedures and complete exemptions from customs and tax duties.
Driving National Economic Growth
The announcement, made during the Rise Up Prop-Tech Summit, underscores the Egyptian government’s conviction in the role of startups as a primary engine for economic growth. Heiba emphasized that the government is relying on the fast-growing startup sector to help achieve its target GDP growth rate of 6% to 7%. He noted that regulatory bodies are actively adopting innovative ideas from entrepreneurs to create a more supportive legislative environment.
Heiba also highlighted the potential for innovation in established industries, calling on Egypt’s real estate sector to increase its adoption of startup-led solutions. He pointed to advancements in innovative financing, remote design, fractional investment, and AI-powered financial evaluation as key areas where prop-tech startups are already adding value. He revealed that GAFI is currently establishing an innovation center for the automotive sector, reflecting the government’s strategic goal of localizing technology.
Building on a Legacy of Support
This new initiative builds upon GAFI’s long-standing efforts to cultivate a thriving entrepreneurial environment. Heiba recounted the authority’s journey, from establishing the “Bedaya” center for entrepreneurship to launching the “Falak” business incubator and the “Egypt Ventures” investment firm in collaboration with the Ministry of International Cooperation.
GAFI has also introduced a fast-track process for entrepreneurs, enabling single-person companies to be established electronically in just two hours. Furthermore, founders receive VIP service at investor service centers at no additional cost, demonstrating a commitment to removing bureaucratic hurdles for this high-growth sector.
Fostering International Collaboration
GAFI’s support extends beyond national borders. The authority is actively coordinating with foreign governments and business communities to facilitate the international expansion of Egyptian companies, addressing challenges like double taxation and protectionist policies. Heiba added that GAFI’s international investment promotion delegations now regularly include prominent entrepreneurs to help them attract foreign funding and explore global expansion opportunities.
Heiba concluded by encouraging entrepreneurs to collaborate with Egyptian universities to take advantage of the European Union’s “Horizon Europe” research and innovation program. Following Egypt’s recent accession to the program, Egyptian institutions will gain access to European knowledge in critical research areas, which is expected to deliver tangible benefits across numerous economic sectors.
About The General Authority for Investment and Free Zones (GAFI)
The General Authority for Investment and Free Zones (GAFI) is the principal Egyptian government authority concerned with regulating and facilitating domestic and foreign investment. It operates under the Ministry of Investment and International Cooperation and is responsible for promoting Egypt as an investment destination, developing investment policies, and managing the country’s free zones.
Source: Youm7
