Developing the Free Zones framework, Advancing Digital Transformation, and Promoting Services Exports to Increase Employment and Exports
Dr. Mohamed Farid:
- Free zones are not an end in themselves, but a tool to drive employment and increase exports.
- We aim to adopt a data- and AI-driven investment management approach to enhance the efficiency of economic decision-making
- Accelerating the business environment and simplifying procedures to support business expansion and growth
Dr. Mohamed Farid, Minister of Investment and Foreign Trade, affirmed that free zones and other investment schemes are not objectives in themselves, but rather tools within an integrated framework aimed at creating an enabling investment environment. This contributes to facilitating investor activity, stimulating economic growth, and supporting the state’s objectives of increasing employment, boosting exports, and enhancing the competitiveness of the Egyptian economy.
This came during the Minister’s participation in an expanded seminar organized by the Egyptian Center for Economic Studies (ECES), titled “Settling the Debate over Egyptian Free Zones,” in the presence of Mr. Ahmed Kouchouk, Minister of Finance. During the seminar, the Minister reviewed a number of key pillars related to developing investment policies, improving system efficiency, and strengthening the role of data in decision-making.
The Minister stressed the importance of enhancing the competitiveness of this sector in Egypt and the need to develop evaluation mechanisms that focus on achieving core objectives, primarily employment generation and export growth.
He explained that the Ministry is working to strengthen data-driven decision-making by collecting and analyzing data related to free zones and various investment activities, enabling more accurate and objective performance assessment.
He also highlighted the importance of leveraging digital transformation and artificial intelligence technologies in analyzing financial statements and economic data, thereby supporting informed and evidence-based decision-making.
Dr. Farid further noted that companies operating in free zones and other investment frameworks will be required to submit annual and quarterly financial statements in accordance with applicable laws and commercial registry requirements, enhancing transparency and enabling more effective performance evaluation.
With regard to improving the investment climate, the Minister pointed out the need to address procedural challenges related to capital increases, which may take up to six months due to the involvement of multiple entities.
He added that the Ministry is working to resolve these challenges through electronic integration among relevant entities, including the Financial Regulatory Authority (FRA), the Commercial Register, Misr for Central Clearing, Depository, and Registry (MCDR), and the Egyptian Exchange for listed companies. This integration will significantly expedite capital increase procedures.
The Minister concluded by emphasizing the importance of the services sector in the Egyptian economy, stressing the need to develop new approaches to engaging with the sector and strengthening its role in supporting exports.
