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Egypt Cabinet Approves Ending State Enterprise Tax Privileges

A crane lifting stones is pictured behind camels resting with their trainers by the Pyramid of Menkaure (or Menkheres, built in the 26th century BC) at the Giza Pyramids Necropolis, west of Cairo, on January 29, 2023. (AFP)
A crane lifting stones is pictured behind camels resting with their trainers by the Pyramid of Menkaure (or Menkheres, built in the 26th century BC) at the Giza Pyramids Necropolis, west of Cairo, on January 29, 2023. (AFP)
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Egypt Cabinet Approves Ending State Enterprise Tax Privileges

A crane lifting stones is pictured behind camels resting with their trainers by the Pyramid of Menkaure (or Menkheres, built in the 26th century BC) at the Giza Pyramids Necropolis, west of Cairo, on January 29, 2023. (AFP)
A crane lifting stones is pictured behind camels resting with their trainers by the Pyramid of Menkaure (or Menkheres, built in the 26th century BC) at the Giza Pyramids Necropolis, west of Cairo, on January 29, 2023. (AFP)

Egypt's cabinet approved regulations on Wednesday that would abolish many tax and fee exemptions for state-owned enterprises, fulfilling a key condition the IMF set in a $3 billion agreement signed a year ago.

The cabinet approved the law in June but had yet to draw up the executive regulations needed for implementation.

The International Monetary Fund in a $3 billion financial support agreement signed in December 2022 urged Egypt to level the playing field between the private and public sectors.

The agreement fell into abeyance after Egypt did not follow through on other commitments, including allowing its currency to move in response to market forces, to move quickly to sell state assets and to reduce the government's role in the economy.

The new regulations "apply to all investment or economic activities undertaken by state agencies." These include "units of the state administrative apparatus, local administration units, national public, service and economic bodies and agencies that have special budgets," the cabinet said in a statement.

The regulations do not apply "to military work and the requirements for defending the country or protecting national security," the cabinet statement said.

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Three Saudi-Yemeni Companies Established in Energy, Telecom to Support Yemen's Reconstruction

The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
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Three Saudi-Yemeni Companies Established in Energy, Telecom to Support Yemen's Reconstruction

The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)

The Saudi-Yemeni Business Council, part of the Federation of Saudi Chambers, announced six initiatives to boost trade and support Yemen’s economic development at a meeting in Makkah, Saudi Arabia.
Over 300 Saudi and Yemeni investors attended, agreeing to establish three companies to help rebuild Yemen and improve its infrastructure.
The initiatives include upgrading border crossings to improve logistics and increase trade, currently valued at 6.3 billion riyals ($1.6 billion). Yemen’s exports to Saudi Arabia, worth only 655 million riyals ($174.6 million), highlight untapped potential in mining, agriculture, livestock, and fisheries.
Key recommendations to enhance trade and support Yemen’s economic recovery include setting up quarantine facilities for Yemeni livestock and agricultural products to increase exports, as well as building smart food cities near border areas to improve food security and sustainable cooperation.
The Council urged action to address banking challenges faced by traders, suggesting reforms in Yemen’s financial sector and stronger ties with Saudi banks. It also proposed creating a club for Yemeni investors in Saudi Arabia to encourage joint projects and partnerships.
Three new Saudi-Yemeni companies will be established. One will invest $100 million in solar energy to provide sustainable electricity in Yemen. Another will focus on boosting telecommunications via Starlink satellite services. The third will organize events to promote Saudi products and support Yemen’s reconstruction.
Speaking to Asharq Al-Awsat, Council President Dr. Abdullah bin Mahfouz emphasized the private sector’s critical role in stabilizing Yemen’s economy and society through investments that support development, create jobs, improve infrastructure, and promote small and medium-sized enterprises (SMEs).
He stressed the importance of empowering Yemeni entrepreneurs and securing funding for reconstruction projects, encouraging public-private partnerships to execute large-scale initiatives under the Build-Operate-Transfer (BOT) model.
The Makkah meeting ended with agreements between Saudi and Yemeni companies to develop key sectors such as energy, agriculture, and infrastructure.
Streamlined customs, improved logistics, and upgraded Yemeni ports and airports were also highlighted as priorities to facilitate trade.
Yemeni delegation leader Abdulmajid al-Saadi, praised Saudi Arabia’s new investment law, noting Yemeni investments in the Kingdom have reached 18 billion riyals ($4.8 billion), ranking third among foreign investors.