Interview | Dr.Nermeen Tahoun:
Dr. Nermeen Tahoun, Economic Expert and former Director of Legal Affairs at the Public-Private Partnership Unit at Egypt’s Ministry of Finance, says Egypt has the potential to compete with regional investment hubs such as the UAE and Türkiye, particularly in attracting SMEs and productive industrial investments.
Tahoun stresses that investors are primarily looking for stability, speed and predictability rather than incentives alone, arguing that simplifying licensing procedures, consolidating authorities, expanding digital government services and targeting incentives toward productive investments are essential to improving Egypt’s investment climate.
Q: You have extensive experience in public-private partnerships. How did your professional journey shape your view of Egypt’s investment environment?
A: My experience with public-private partnerships gave me an early understanding of the importance of creating a clear legal and regulatory framework for investors. I was involved in preparing Egypt’s PPP legislation and drafting model contracts at a time when this concept was still relatively new in Egypt and the region.
This experience also showed me that investors do not look at a single law or incentive in isolation. They assess the entire business environment, including regulations, licensing procedures, access to land, financing, foreign currency availability and the predictability of government decisions.
The most important lesson I learned is that confidence is more valuable than short-term incentives. Investors need to know that the rules governing their projects will remain clear and stable over the long term.
Q: What are the main legal and procedural challenges currently facing investors in Egypt?
A: One of the biggest challenges remains the multiplicity of authorities and jurisdictions involved in obtaining approvals and licenses.
An investor may have to deal with several government entities depending on the nature of the project, including industrial development, environmental, civil protection, tax, social insurance and other authorities. Even when company incorporation itself is completed quickly, launching the actual project can still take considerable time because of the number of subsequent approvals required.
This increases costs, delays the deployment of capital and affects the investor’s ability to plan.
I believe that consolidating jurisdictions and creating a truly integrated system where the investor submits applications through a single platform would make a significant difference.
Q: Is the Golden License enough to address these challenges?
A: The Golden License is a positive step, but it should be part of a broader reform rather than a standalone solution.
The objective should be to make the entire investment journey easier, from incorporation and land allocation to licensing, construction and operation.
This is particularly important for SMEs. A large multinational company may have the resources and legal teams required to navigate complex procedures, but a small investor cannot afford to spend months dealing with multiple authorities.
Q: How do you assess Egypt’s current legislative framework for investment?
A: There have been serious efforts to improve the legislative environment, and several recent reforms have been positive. However, legislation should not be amended simply for the sake of modernization.
The key question should always be whether a proposed amendment actually solves an existing problem or creates additional uncertainty.
Frequent changes to the same legislation can make investors hesitant because they need predictable rules on which they can base long-term investment decisions.
The investor is not necessarily looking for the most generous law; they are looking for a stable and predictable one.
Q: Which countries do you believe Egypt should benchmark itself against?
A: The UAE is an important benchmark because of the ease with which companies can be established and licenses obtained. Türkiye also offers an interesting model, particularly in supporting SMEs and developing them into productive and export-oriented businesses.
Morocco and Tunisia have also introduced successful initiatives in certain areas.
Egypt should recognize that investors do not compare the country only with its previous performance. They compare Egypt with every other market where their capital could be deployed.
Therefore, speed, transparency and predictability are increasingly becoming competitive advantages.
Q: Can Egypt realistically compete with the UAE and Türkiye for investment?
A: Absolutely. Egypt has significant advantages, including a large domestic market, a strategic geographic location, an industrial base and access to regional and international markets.
But these advantages must be translated into practical benefits for investors.
An investor does not want incentives that exist only on paper. They want to establish a business quickly, obtain the required licenses without unnecessary procedures, secure land and operate under stable regulations.
If Egypt succeeds in reducing the time and cost required to establish and operate a project, it can become much more competitive.
Q: What role can SMEs play in Egypt’s economic growth?
A: SMEs can become one of the most important drivers of economic growth. They can increase domestic production, create jobs, support exports and deepen local manufacturing.
However, SMEs need a regulatory framework designed around their scale.
We should not subject a small industrial project to exactly the same procedural burden as a major investment project.
The government should also link incentives to measurable outcomes such as production, exports, local content and technology transfer.
Q: What is needed to accelerate industrial investment and reduce Egypt’s import bill?
A: The priority should be to expand domestic manufacturing, particularly the production of machinery, equipment, raw materials and industrial inputs.
Import substitution should not mean simply replacing imported final products. The real opportunity lies in developing local supply chains and increasing the share of value added generated inside Egypt.
If Egypt can manufacture more of its production inputs domestically, it will reduce pressure on foreign currency while increasing the competitiveness of Egyptian exports.
Q: How important are tax and customs incentives in attracting industrial investment?
A: Incentives are important, but they should be targeted rather than generalized.
Tax and customs incentives should prioritize productive industries, technology-intensive projects, industrial inputs and companies that bring new technologies and establish actual production capacity in Egypt.
The objective should be to reward investment that generates measurable economic value.
A company that creates jobs, increases exports, transfers technology and develops local suppliers should receive stronger incentives than an investment that creates limited value for the domestic economy.
Q: Who is the “serious investor” that should receive these incentives?
A: Capital alone should not be the only criterion.
A serious investor should ideally have relevant experience, a proven track record and the technical and financial capacity to successfully implement the proposed project.
The government needs clear qualification criteria to ensure that incentives reach investors who have the ability to establish sustainable productive projects rather than simply acquire assets or benefit from incentives.
Q: How important is access to industrial land?
A: Access to properly serviced industrial land is critical.
Egypt has substantial land resources, so the challenge is not simply the availability of land, but how quickly investors can access serviced and investment-ready plots.
The industrial developer model can play an important role here. Developers can take responsibility for infrastructure and utilities within industrial zones, allowing investors to focus their capital on production rather than basic site preparation.
Providing ready-to-operate small industrial units would also be particularly beneficial for SMEs.
Q: What is your assessment of the industrial developer model?
A: I consider it an efficient model because it reduces the burden on the government while providing investors with serviced industrial land and facilities.
An investor would naturally prefer to allocate capital to machinery, production and employment rather than spend a significant portion of the investment budget preparing the site.
The model can therefore help accelerate the establishment of industrial projects and improve the overall investment proposition.
Q: How can Egypt increase exports and achieve ambitious export targets?
A: Export targets must be supported by realistic production plans.
You cannot achieve sustained export growth without expanding production capacity, developing local supply chains, improving product quality and ensuring access to industrial inputs.
Egypt also has an advantage through its trade agreements, which can provide access to important international markets.
The focus should therefore be on using these agreements to attract companies that can manufacture in Egypt and export from Egypt.
Q: How important are international economic agreements in attracting foreign investment?
A: They are extremely important because they provide investors with an additional layer of confidence.
Double taxation treaties, investment protection agreements, trade agreements and broader economic cooperation frameworks can reduce risks and improve the attractiveness of the Egyptian market.
Egypt should make greater use of these agreements to attract investors from countries that possess advanced technologies, capital and industrial expertise.
Q: What is your assessment of Egypt’s foreign exchange environment from an investor’s perspective?
A: Exchange-rate stability is essential for investment planning.
The issue is not the exchange-rate adjustment itself. Such measures can be necessary when there are structural imbalances. The real concern for investors arises when foreign currency is difficult to access or when there is a significant gap between official and parallel market rates.
Investors need a transparent mechanism for pricing and access to foreign currency so they can accurately calculate project costs and returns.
Greater stability in the foreign exchange market helps restore confidence and enables companies to make longer-term investment decisions.
Q: What positive developments do you see in Egypt’s economic environment?
A: There have been important efforts to restore greater stability in the foreign exchange market and improve access to foreign currency through the banking system.
For investors, confidence is fundamental.
When companies believe that they can obtain the foreign currency needed for imports, production and expansion through the formal banking system, they become more capable of planning and committing additional capital.
Q: What should be the government’s priorities during the next phase?
A: The priority should be to simplify procedures, consolidate jurisdictions and expand digital government services.
The investor should ideally be able to submit applications, track approvals and complete most procedures through one integrated digital platform.
At the same time, Egypt should continue expanding industrial land offerings, strengthening local manufacturing and targeting incentives toward investments that generate production, employment, exports and technology transfer.
Q: Your law firm was an early adopter of digital legal services. How do you see technology changing the legal profession?
A: Technology will fundamentally change the way legal services are delivered.
We started developing a digital legal application at an early stage because we believed that technology would become an essential part of the profession.
The adoption of digital services is increasing, although changing the culture around digital legal services takes time.
Lawyers who fail to develop their technological skills and adapt to new tools will find it increasingly difficult to compete.
Q: Will artificial intelligence replace lawyers?
A: Artificial intelligence will certainly change the legal profession, particularly by automating some traditional and repetitive tasks.
However, I do not believe that technology will eliminate the need for lawyers. Instead, it will change the skills required from them.
The successful lawyer in the future will be the one who knows how to use technology and AI to provide faster, more efficient and more sophisticated legal services while focusing on judgment, strategy and client needs.
Q: You also established an academy for young lawyers. What is its objective?
A: The academy was established to bridge the gap between academic education and the practical requirements of the legal profession.
Young lawyers need practical training in areas such as contract drafting, mergers and acquisitions, arbitration and other specialized fields.
The strong interest in these programs demonstrates that there is a genuine need for practical professional development.
Q: Finally, what is your message to policymakers and investors?
A: Egypt has a genuine opportunity to attract a new generation of productive investments, but the country must always ask itself why an investor should choose Egypt over the UAE, Türkiye or another competing market.
The answer should be clear: because Egypt offers a large market, strategic location, industrial opportunities, skilled human resources and, most importantly, an increasingly efficient and predictable business environment.
The objective should not simply be to attract capital. The real objective is to attract productive investment that establishes factories, creates jobs, increases exports, transfers technology and generates sustainable value for the Egyptian economy.
If we can make establishing, licensing and operating a project easier, while maintaining stable legislation and linking incentives to production and exports, Egypt’s ability to compete for regional and international investment will increase significantly.
