The measure exempts companies from the cost of notarizing contracts at the Real Estate Registration and Notarization Department, allowing them to rely on registration with the Financial Regulatory Authority.
Dr. Mohamed Farid Stated That:
- Eliminating the procedural burdens on companies is a key step in enhancing the business environment and facilitate operations for companies.
In line with the vision of the Ministry of Investment and Foreign Trade (MIFT) to improve the business climate and ease procedures for investors through integration among State institutions, and as part of the government’s approach to supporting the private sector, MIFT, headed by Dr. Mohamed Farid Saleh, has canceled the requirement to notarize financial leasing contracts at the Real Estate Registration and Notarization Department (RERND) for companies operating in free zones. This measure aims to reduce administrative burdens and strengthen companies’ financial capacity, relying instead on registration with the Financial Regulatory Authority, in accordance with the provisions of the Financial Leasing and Factoring Law No. 176 of 2018.
Free zones are among Egypt’s investment frameworks, operating under special tax, customs, and currency regulations, and allowing a variety of production activities, particularly export-oriented industries.
Following Dr. Mohamed Farid Saleh’s directives, the Permanent Technical Committee for Free Zones circulated the decree to all free zone administrations.
The Minister emphasized that canceling the notarization of financial leasing contracts will provide companies with additional liquidity, supporting their ability to fund production processes at lower costs.
According to the general principles issued by the Permanent Technical Committee for Free Zones on March 14, 2011, free zone projects were permitted to lease their capital assets under certain conditions, including submitting a non-cancellable financial leasing contract notarized at RERND.
In 2019, Circular No. 28 was issued, regulating the use of the financial leasing system for project buildings and facilities (excluding land), without explicitly requiring notarization of the financial leasing contract at RERND.
Dr. Farid added that providing Egyptian projects with production-supportive measures at lower costs will enhance the competitiveness of Egyptian products in international markets, supporting the State’s efforts to increase exports.
He confirmed that the Financial Leasing and Factoring Law organizes the registration of financial leasing contracts with the Financial Regulatory Authority, providing legal protection for companies without the need for notarization at RERND.
In addition, the Minister also clarified that MIFT, its affiliated entities, and Egyptian companies operate as a unified team working to achieve national targets for increasing production and exports, emphasizing that the decree responds to the requests of companies operating in free zones and reflects MIFT’s commitment to creating a more efficient and competitive business environment.
Under Law No. 176 of 2018 regulating financial leasing and factoring, the Financial Regulatory Authority is responsible for registering all financial leasing contracts executed in Egypt, as well as associated sale contracts. The registration must include details of the leased asset, the parties involved, their legal capacity the asset, and the contract duration.
Financial Leasing is a financing tool whereby a leasing company (lessor) purchases an asset selected by the client (lessee), such as equipment, machinery, or real estate, and leases it in exchange for periodic payments, with the possibility of ownership transfer at the end of the contract under agreed conditions.
This decree is part of MIFT’s strategy, led by Dr. Mohamed Farid Saleh, to facilitate procedures and remove bureaucratic obstacles for Egyptian companies and the private sector, thereby reducing production costs, enhancing export competitiveness, and contributing to sustainable growth in line with government directives.
