The Petroleum Sector has developed an economic model for investment by following Political leadership guidance to promote Egyptian Economy through increasing the exports and attracting the investments as well as transferring technology and increasing job opportunities. The major features of this model are represented in attracting the International and Arabic investments as well as considering exportation a national strategic goal of the petroleum sector.
The Petroleum Sector has started an economic opening phase which depends on working in various major axes which are:
First Axis: Attracting more foreign and Arab investments.
Second Axis: Any petroleum project established inside the Egyptian territories should have an additional value for the Egyptian economy. Also, there should be profitable revenue for the investments and these projects must participate in creating new direct and indirect job opportunities whether
in execution or operation phase.
Third Axis: Any project in the petroleum sector should have profitable revenue in both foreign and local currencies.
Fourth Axis: Focusing on exporting high quality petroleum and petrochemical products as well as natural gas .This is to continue the previous strategy as it was limited in exporting crude oil and some low quality products used in manufacturing other goods.
Investment attraction Legal Frame
Since the last decade of the twentieth century, the Egyptian government started enacting new laws aiming at attracting international, regional and domestic investments through facilitating the regulations and procedures which hinder production and investment resolutions. In this concern, the following laws were issued as a first step to attract the investment of the Egyptian private sector and international investment and financing corporations.
• Flexibility in choosing the field of investmentNO restrictions shall exist on the capital’s nationality as the Egyptian or Arab or Foreign Capital shall hold alone or share with any percentage in the investments in free zoon projects.
• Eliminating capital limits as the law granted the freedom of determining the volume of the invested capital for the owner of the project in the light of the project nature, volume and the estimated production capacity.
• Flexibility in choosing the project legal form (one-man business, private company, Stock Corporation, branch of foreign company).
• Flexibility in transferring projects, invested money and re export it.
• Flexibility in operating for others to exploit its excess capabilities.
• Flexibility in product price and profits determination.
• Facilities in residence are granted for foreign investors also residence licenses are granted for foreign personnel upon the project request.