Egypt’s New Tax-Free Zones Aim to Boost Tech Startups and Stem the Talent Exodus
- Egypt is establishing tax-free zones to support tech startups and retain local entrepreneurs.
- Startups in the service sector, especially those in software exports and AI, can now set up headquarters in designated free zones.
- GAFI has launched a fast-track registration system allowing entrepreneurs to create a company online within two hours.
While the introduction of tax-free zones is a positive step towards supporting startups in Egypt, the real challenge lies in the effective implementation of these policies. The government must ensure that these incentives are complemented by access to funding and mentorship to truly foster a thriving entrepreneurial ecosystem. Without addressing these broader needs, the initiative may not be sufficient to retain startups in the long term.
