Egypt: MENA Gateway with Investment-Based Citizenship

Egypt, the most populous Arab nation with over 105 million people, offers a unique combination of ancient heritage, strategic geographic positioning, and an emerging citizenship-by-investment program. The country serves as a natural gateway between Africa, the Middle East, and Europe through the vital Suez Canal corridor.

Living in Egypt

Egypt offers diverse living options from cosmopolitan Cairo to Mediterranean Alexandria and Red Sea resort cities like Hurghada and Sharm El Sheikh. Arabic is the official language, though English is common in business and tourism sectors. The cost of living is very low by global standards, attracting retirees and digital nomads.

Healthcare varies significantly, with excellent private facilities in Cairo alongside basic public services. The climate is predominantly desert with hot summers and mild winters. Cairo offers world-class museums, dining, and cultural life, while the Red Sea coast provides resort-style living.

Safety is generally good in tourist and business areas, with standard precautions recommended. The expatriate community is substantial, particularly in Cairo and coastal areas. Traffic congestion in major cities is legendary, but ride-sharing has improved mobility.

Doing Business in Egypt

Corporate tax stands at 22.5% for most companies, with 10% reduced rates for certain sectors and special economic zones. Personal income tax reaches 27.5% at the highest bracket. VAT is 14% on most goods and services.

The Egyptian Pound (EGP) has experienced significant devaluation, creating opportunities for foreign investors but requiring careful currency management. Some foreign exchange controls apply but are manageable for legitimate business operations.

Egypt has 61+ double tax treaties and is a member of multiple regional trade agreements including COMESA (Common Market for Eastern and Southern Africa) and GAFTA (Greater Arab Free Trade Area).

Company Formation and Registration

Company registration typically takes 2-3 weeks through the General Authority for Investment (GAFI). Key features include:

• Limited Liability Company (LLC) requires minimum 2 shareholders
• No minimum capital requirement for LLC
• 100% foreign ownership permitted in most sectors
• Physical registered office required
• Egyptian manager requirement removed by 2018 amendments
• Public company registry with UBO disclosure
• Nominee shareholders and directors permitted

Annual requirements include audited financial statements and tax filings. Some sectors (importing for trading, commercial agencies) require Egyptian majority ownership.

Crypto License Opportunities

Cryptocurrency is effectively prohibited in Egypt under Central Bank Law No. 194 of 2020. Trading, issuance, and promotion of cryptocurrencies without CBE license is illegal, and no licenses have ever been issued. Financial penalties and potential imprisonment apply for violations.

This prohibition reflects concerns about capital flight and monetary policy, though some discussion of future regulation has occurred.

Gambling License Framework

Land-based casinos operate under Ministry of Tourism regulation exclusively for foreign tourists in licensed hotels. Egyptian nationals are prohibited from gambling. License fees range from EGP 2.5-5 million.

Online gambling has no licensing framework and is effectively prohibited. Sports betting is restricted to state operations. Foreign-focused online gambling would require operating from another jurisdiction.

Citizenship by Investment

Egypt's Citizenship by Exceptional Naturalization program offers several investment pathways:

Direct Government Deposit: USD 250,000 direct donation to the state treasury (non-refundable).

Central Bank Deposit: USD 500,000 deposit in the Central Bank of Egypt for 5 years (refunded without interest after the period).

Real Estate Investment: USD 300,000 in government-designated real estate projects, held for 5 years.

Company Investment: USD 400,000 investment in an Egyptian company and establishment of a business employing Egyptians.

Processing Time: 6-12 months typical.

Family Inclusion: Spouse and minor children can be included.

Egyptian citizenship provides:

• Visa-free or visa-on-arrival access to 50+ countries
• Right to live and work in Egypt indefinitely
• Access to Egyptian education and healthcare systems
• Potential pathway to other Arab League countries
• Dual citizenship permitted

Important Considerations:

• Enhanced due diligence for certain nationalities (China, Russia, Ukraine, Nigeria, Israel, Iran, Belarus, Bangladesh, Iraq, Palestine require advance security clearance)
• Egyptian citizenship carries military service obligations for males under certain conditions
• The program is relatively new and less established than Caribbean alternatives

Considerations

Currency volatility presents significant business risk, with the Egyptian Pound experiencing major devaluations. Bureaucracy can be challenging, requiring patience and local expertise. Infrastructure outside major cities remains underdeveloped.

Banking access requires physical presence and local connections. The prohibition on cryptocurrency limits fintech opportunities. Economic reforms are ongoing, creating both opportunities and uncertainties.

The large domestic market (105+ million consumers) offers significant opportunities for consumer-facing businesses. The Suez Canal provides strategic positioning for logistics and trade. New administrative capital and major infrastructure projects signal long-term development ambitions.

Egypt suits businesses targeting the large domestic market, investors seeking MENA gateway positioning, real estate developers, and individuals seeking citizenship for regional access and lifestyle considerations.