Cairo – May 12, 2025: The General Authority for Investment and Free Zones (GAFI) has announced that, for the first time, service-exporting startups will be allowed to operate within the country’s freezones. This marks a significant expansion of the freezone model, which has traditionally catered only to industrial sectors.
The announcement was made by GAFI CEO Hossam Heiba during his address at the RiseUp Summit 2025, held under the theme “Empowering Startups: Supporting Government Policies.”
Heiba emphasized that these freezones will be equipped with essential support services for startups, including consulting, marketing, and legal assistance, creating a conducive environment for growth and innovation.
Startups operating in sectors such as software exports and artificial intelligence (AI) will be offered a range of incentives, including simplified administrative procedures and full exemptions from customs duties and taxes.
GAFI is allocating approximately 9,000 square meters of office space for these businesses, aiming to create a dynamic base of operations supported by a network of auxiliary services.
The announcement comes as part of broader efforts to bolster Egypt’s position as a hub for innovation and entrepreneurship.
Heiba highlighted GAFI’s 15-year journey in ecosystem development, starting with the launch of the Bedaya Center for Entrepreneurship and SME Development and later the formation of Egypt Ventures in partnership with the Ministry of International Cooperation.
The Authority also runs the Permanent Unit for Entrepreneurship and Startups, which coordinates cross-sector support and policy design.
“These initiatives have helped develop a cohesive support system for startups and continuously improved the incentive packages available to entrepreneurs, aligning with the evolving dynamics of the sector,” said Heiba.
Further easing the path for new business formation, Heiba revealed that entrepreneurs can now register single-member companies online within just two hours through a newly launched fast-track system. Premium services will also be available to founders at Investor Services Centers at no extra cost.
International expansion is a core part of GAFI’s vision. The Authority is actively working with partners in the European Union, Saudi Arabia, and Morocco to facilitate Egyptian startups’ entry into these markets. Initiatives include support on regulatory compliance, promotional assistance, and tax coordination to eliminate double taxation and counter protectionist measures.
Looking ahead, Egypt’s legislative landscape is also set to evolve in favor of startups. Heiba announced that a new law will be issued this year to regulate Financial and Business Zones, designed to attract investment funds and venture capital. “The goal is to transform Egypt into a regional hub for investment funds, particularly VCs, to mobilize local and foreign funding for Egyptian startups,” he said.
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