Federation of Egyptian Industries drafts bankruptcy law in June

CAIRO- 27 May 2017: The investment committee in the Federation of Egyptian Industries (FEI) will start drafting its version of the bankruptcy law next month, committee head Mahmoud Soliman said.

Soliman explained that the draft law would impose methods for exiting the market, protect investors from prison and provide lenders their dues. The FEI’s draft law is scheduled to be sent to the cabinet for review.

As parts of efforts to revitalize the investment climate, the Egyptian cabinet has approved the bankruptcy draft law in January.

The law is yet to be discussed and ratified by the parliament.
Minister of Justice Mohamed Hossam Abdel -Rahim told Reuters at that time that the law aims to decrease the procedures for companies and individuals to finalize post-bankruptcy measures.

The bankruptcy law is deemed one of the major legislations needed to lure investors. The long-awaited Investment Law was approved by the parliament on 7 May, offering incentives such as 20 percent of foreign labor in projects, rapidly addressing investment disputes and allocating land plots at no cost for development projects in areas of New Suez Canal, Upper Egypt, Fayoum and Marsa Matruh.

President Abdel Fatah al-Sisi approved on 9 May the Industrial Permits Act that aims at easing measures for obtaining licenses for the industrial establishments.