In a significant move to bolster its startup ecosystem, Egypt’s General Authority for Investment and Free Zones (GAFI) has announced that dedicated administrative headquarters for startups will become operational within its free zones in the next six months. The initiative will kick off in Nasr City before expanding nationwide, aiming to provide startups with unprecedented access to tax exemptions, streamlined procedures, and a supportive environment for global expansion.
A Gateway to Growth and Global Markets
Hossam Heiba, CEO of GAFI, revealed that the first phase will see 9,000 square meters of operational and administrative space allocated within the Nasr City Free Zone. This hub is specifically designed for companies in software exportation and artificial intelligence.
To create a comprehensive support system, the new headquarters will also host essential private sector service providers, including consulting, marketing, and legal firms. This co-location strategy is intended to enhance the success rate of resident startups, equipping them with the necessary tools to scale and penetrate foreign markets. By operating within these zones, startups will benefit from key advantages such as customs and tax exemptions, simplifying their path to growth.
Nationwide Expansion and Strategic Vision
The Nasr City hub is just the beginning. According to Heiba, GAFI plans to allocate new spaces in the Alexandria Free Zone to host startups next, with the ultimate goal of replicating this model across all free zones in the republic.
This initiative is part of a broader government strategy that views startups as critical engines for economic growth. Heiba emphasized that the government is confident in the role of startups to help achieve its target GDP growth of 6% to 7%, citing their agility and innovative problem-solving capabilities. This belief has prompted a shift in regulatory approaches, with government bodies increasingly adopting ideas from entrepreneurs to evolve legislation from a supervisory role to one that actively supports and drives growth.
Fostering Innovation Across Key Sectors
Speaking at the Rise Up Prop-Tech Summit, Heiba called on Egypt’s real estate sector to deepen its partnership with startups to develop sustainable solutions, including innovative financing, remote design, fractional investment, and AI-powered financial valuation. He noted that innovation has now become a key criterion for receiving investment incentives offered by the government for new projects.
Beyond proptech, GAFI is also working to establish an innovation center for the automotive sector as part of its efforts to localize technology and support national industry. This reflects a targeted approach to fostering innovation in vital economic sectors.
Streamlined Support for Founders
GAFI has also implemented several measures to directly support entrepreneurs. A fast-track electronic system now allows founders to establish their companies with ease, with a one-person company able to be registered in just two hours. Founders also receive complimentary VIP service at investor service centers.
Furthermore, GAFI is actively supporting the international expansion of Egyptian companies by coordinating with foreign governments to avoid double taxation and providing administrative and promotional support during their initial stages of growth. Heiba highlighted that Egyptian entrepreneurs are now included in official promotional tours to showcase their projects and attract international funding.
About GAFI
The General Authority for Investment and Free Zones (GAFI) is the principal government body responsible for regulating and facilitating investment in Egypt. It plays a crucial role in promoting and developing the investment climate, managing the country’s free zones, and providing a one-stop-shop for investors to streamline business establishment and operations. GAFI is at the forefront of implementing Egypt’s economic development policies to attract both foreign and domestic investment.
Source: Al Mal News
