The Egyptian government has officially launched the “Egypt Startup Charter” during the 13th edition of the RiseUp Summit at the Grand Egyptian Museum, marking a strategic shift in the nation’s approach to the entrepreneurship ecosystem. Announced in the presence of Prime Minister Dr. Mostafa Madbouly and Dr. Rania Al-Mashat, Minister of Planning,
conomic Development, and International Cooperation, the charter is the result of over a year of consultations between 15 national entities and 250 representatives from the startup and venture capital community. The initiative aims to provide a robust regulatory and financial framework to support Egyptian innovators and position the country as a leading regional tech hub.
Ambitious Targets for a Knowledge-Based Economy
The new charter sets a five-year strategic roadmap (2026-2031) designed to significantly increase the contribution of startups to the national GDP. Key targets include the empowerment of up to 5,000 startups and the creation of approximately 500,000 direct and indirect jobs. Furthermore, the charter aspires to foster the emergence of five new “Unicorns” (companies valued at over $1 billion) within the next five years and support 500 companies in securing funding rounds exceeding $1 million each.
Unified Definition and Unprecedented Tax Incentives
For the first time in Egypt’s legislative history, the charter introduces a unified official definition for startups based on six core criteria. To qualify, a company must be technology or intellectual property-driven, less than seven years old, and possess a scalable business model. This classification allows companies to obtain a “Startup Classification Certificate” through two tracks: a “Fast Track” taking only five days for companies backed by accredited VCs or accelerators, and a “Standard Track” completed within two weeks.
Aligned with this definition, startups will benefit from a simplified tax regime, including an income tax rate ranging from 0.4% to 1% for companies with annual revenues below EGP 20 million. Additionally, qualified startups are granted full exemptions from capital gains tax, stamp duty, and notarization fees, alongside a five-year grace period before the first tax audit.
$1 Billion Unified Financing Initiative
The Prime Minister announced a unified financing initiative targeting the mobilization of $1 billion for the startup sector by 2030. This initiative coordinates government resources to act as guarantees and co-investments, aiming to stimulate private sector and international venture capital participation. The goal is to achieve a fourfold multiplier effect on available government funds through strategic partnerships. The charter also facilitates modern funding mechanisms such as crowdfunding and provides startups with free access to research infrastructure and equipment at national research centers.
Streamlined Operations and Scale-up Support
The charter includes a suite of executive measures to bridge procedural gaps, such as the ability to register a company via a unified digital platform within 24 hours. Specialized tax offices will also be established to handle the unique business models of tech startups. To ensure the long-term maturity of the ecosystem, the government introduced a dedicated “Scale-up Program” to support high-growth companies preparing for IPOs or strategic exits, aiming to retain local talent and reduce “brain drain” by providing specialized state support for regional and international expansion.
About Egypt Startup Charter
The Egypt Startup Charter is the official framework governing the entrepreneurship sector in Egypt, developed under the umbrella of the Ministerial Group for Entrepreneurship. Led by the Ministry of Planning, Economic Development, and International Cooperation, the charter was created in collaboration with national entities, the private sector, and international partners including UN Women. It serves as a strategic roadmap to enhance Egypt’s economic competitiveness by fostering a flexible legislative environment and providing comprehensive financial and procedural incentives for innovators.
Source: Al-Masry Al-Youm
