Egypt’s parliament has approved the country’s long-awaited investment law on 7 May, according to a cabinet statement.

The new law will focus on the diversification of incentives and guarantees for investors.

The government first approved an investment law in March 2015 aimed at bolstering investor confidence, eliminating bureaucracy, easing the procedures to obtain licences for projects and attracting foreign investment.

The law includes a number of incentives such as a 50 per cent tax break on investments made in underdeveloped areas and government support for the cost of connecting key utilities.

Additionally, the new law restores private sector free zones as well as rebates on acquired land for industrial projects if production begins within two years.

Cairo passed a revised version of its investment law in March 2015 in a bid to bolster investor confidence, eliminate bureaucracy, ease procedures to obtain licences for projects and attract foreign investment. The law was then amended in December 2015 following complaints from investors.

Analysts have previously told MEED that commercial and investment laws in Egypt are set up in a way where new laws and improvements are simply applied on top of those already in existence.

Cairo has said the new investment law promises to create a genuine one-stop shop for investors to secure licences, procure land and obtain utility connections. It will also set up a standard framework for dispute resolution, including a clause that will make arbitration rulings binding on the government, but not on investors.