Introduction of a New Type of Resid
Introduction of a New Type of Residency for Foreigners
On 14 August 2018, Law No. 173 of 2018[1] was issued amending Law No. 89 of 1960 on the Entry, Residence and Exit of Foreigners, and Law No. 26 of 1975 on Egyptian Nationality. A couple of months earlier when this law was a mere draft, it received mixed views concerning its purpose. The amendment introduces a novel category of residency “deposit residency” that allows foreigners to apply for a residency permit after depositing at least EGP 7 million, with the possibility of acquiring the Egyptian nationality upon residence in Egypt for five years. In an attempt to attract foreign investors, the House of Representatives had passed the law in mid-July.
Background
According to Article (17) of Law No. 89 of 1960, there are three types of foreign residencies: foreigners with special residency, foreigners with ordinary residency, and foreigners with temporary residency. Articles 18 to 20 of this law expound the conditions of each type respectively. Foreigners who are eligible to apply for the special residency are (although not exclusively) scientists, people of literature, art, industry, economics, and others who offer honourable services to the state. This category also encompasses other types of foreigners who are clearly listed in Article (18) of the law. Ordinary residence in accordance to Article (19) is usually permitted for foreigners who legally entered Egypt and maintained continuous residency for 25 years prior to the promulgation of Law No. 74 of 1952. Lastly, Foreigners with temporary residence are those who do not satisfy the conditions of Articles (18) and (19), and hence, are permitted to stay a year maximum with possible renewal upon request.Law No. 173 of 2018
Article (1) of Law No. 173 of 2018 replaces Article (17) of Law No. 89 of 1960 which originally provided the three categories of residencies as mentioned above. The latest amendment provides for a total of four categories having added a new one to the list: deposit residency. More importantly, Article (2) adds a new article to Law No. 89 of 1960 which further identifies the criterion of foreigners with deposit residency. Those who are investing in Egypt and wishing to attain a deposit residency permit must deposit at least EGP 7 million or its equivalent in a foreign currency. Furthermore, the Article authorizes the Minister of Internal Affairs to regulate and systemize deposit residency with the approval of the Council of Ministers. Finally, the amendment adds a new article (Article 4 bis) to Law No. 26 of 1975 that authorizes the Minister of Internal Affairs to award a foreigner with a deposit residency with the Egyptian nationality after staying in Egypt for five consecutive years prior to submitting his/her request for nationality. Such award of nationality must be given in accordance to the conditions stipulated in Law No. 89 of 1960 and Law No. 26 of 1975. In the situation where the foreigner is awarded with the Egyptian nationality, his/her deposited money will be transferred to the public treasury. [1] Law No. 173/2018 amending certain provisions of Law No. 89/1960 on the Entry, Residence, and Exit of Foreigners, and Law No. 26/1975 on Egyptian Nationality, Official Gazette, Issue 32 (bis) (b), 14 August 2018.
صدر في 14 أغسطس الجاري القانون رقم 173 لسنة 2018[1] بتعديل القانون رقم 89 لسنة 1960 في شأن دخول وإقامة الأجانب بأراضي جمهورية مصر العربية والخروج منها، وأيضاً بتعديل القانون رقم 26 لسنة 1975 بشأن الجنسية المصرية. وكان التعديل الأخير قد أثار الآراء المختلفة حول الغرض منه وأهدافه عند مناقشة مشروع القانون. ويُدخِل التعديل الجديد فئة مستحدثة لإقامة الأجانب في مصر تسمى "الإقامة بوديعة" والتي تسمح للأجانب بالتقدم بطلب للإقامة بعد إيداع ما لا يقل عن 7 مليون جنيه مصري؛ كما يمكنهم التعديل من التقدم لطلب اكتساب الجنسية المصرية بعد إقامتهم لمدة 5 سنوات غير منقطعة في مصر. وقد وافق البرلمان على مشروع القانون في منتصف شهر يوليو الماضي.