New Prime Minister Decree to Prepar
New Prime Minister Decree to Prepare for Reform of Industrial Licensing Process
On 1 November 2015, the Prime Minister issued a decree forming a new committee to put a working plan for the reform and simplification of the prices of issuing industrial licences (the "Decree").[1] This is an important step because it tackles one of the most complex and urgent obstacles to investment in Egypt. It also comes at a good time because a few days earlier - on October 26th, 2015 - the World Bank 2016 Doing Business Report was issued and it showed Egypt's ranking slipping once more from 126th to 131st. And in spite of the fact that this is not due to the industrial license process per se, any effort in improving the investment climate in Egypt should be welcomed.
The Decree itself states that the new committee will be responsible for reviewing the current conditions and requirements, suggesting solutions to the existing problems and bottlenecks, and proposing new legislation. It also states that the committee shall be obliged to conclude its work no later than May 31st, 2016.
The importance of this Decree can be ascertained just by reference to its own Preamble, which makes reference to the current laws and decrees directly affecting the process of industrial licensing. These include the Industrial Premises Law (1954), the Industry Law (1958), the Civil Defence Law (1959), the Industrial Registry Law (1977), the Local Administration Law (1979), the New Urban Communities Law (1979), the Environment Law (1994), the Investment Law (1997), the Special Economic Zones Law (2002), the Establishment Development Law (2094), the Construction Law (2008), and the Decree Establishing the Industrial Development Authority (2005). This clearly demonstrates the need to review and update the industrial licensing process.
However, one area of concern is that the new committee is chaired by the Minister of Trade and Industry and is comprised of another fifteen members, all of whom represent governmental agencies, except one representative of the Federation of Egyptian Industries. This does not allow the private sector's perspective and views to be sufficiently taken into consideration, in spite of the fact that the ultimate beneficiaries of such reform effort will be the industrial investors.
[1] Prime Minister's Decree No. 2807/2015 forming a new committee to put a working plan for the reform and simplification of the prices of issuing industrial licences , Egyptian Gazette, Issue No. 252, 8 November 2015.
On 1 November 2015, the Prime Minister issued a decree forming a new committee to put a working plan for the reform and simplification of the prices of issuing industrial licences (the "Decree").[1] This is an important step because it tackles one of the most complex and urgent obstacles to investment in Egypt. It also comes at a good time because a few days earlier - on October 26th, 2015 - the World Bank 2016 Doing Business Report was issued and it showed Egypt's ranking slipping once more from 126th to 131st. And in spite of the fact that this is not due to the industrial license process per se, any effort in improving the investment climate in Egypt should be welcomed.
The Decree itself states that the new committee will be responsible for reviewing the current conditions and requirements, suggesting solutions to the existing problems and bottlenecks, and proposing new legislation. It also states that the committee shall be obliged to conclude its work no later than May 31st, 2016.
The importance of this Decree can be ascertained just by reference to its own Preamble, which makes reference to the current laws and decrees directly affecting the process of industrial licensing. These include the Industrial Premises Law (1954), the Industry Law (1958), the Civil Defence Law (1959), the Industrial Registry Law (1977), the Local Administration Law (1979), the New Urban Communities Law (1979), the Environment Law (1994), the Investment Law (1997), the Special Economic Zones Law (2002), the Establishment Development Law (2094), the Construction Law (2008), and the Decree Establishing the Industrial Development Authority (2005). This clearly demonstrates the need to review and update the industrial licensing process.
However, one area of concern is that the new committee is chaired by the Minister of Trade and Industry and is comprised of another fifteen members, all of whom represent governmental agencies, except one representative of the Federation of Egyptian Industries. This does not allow the private sector's perspective and views to be sufficiently taken into consideration, in spite of the fact that the ultimate beneficiaries of such reform effort will be the industrial investors.
[1] Prime Minister's Decree No. 2807/2015 forming a new committee to put a working plan for the reform and simplification of the prices of issuing industrial licences , Egyptian Gazette, Issue No. 252, 8 November 2015.