2- Investment in Free Zones En

Attachment No 3

Investment in Free Zones Investment in Free Zones It is possible for any investor to establish his project in one of public free zones in any of the different industrial fields activities as well as some aspects of service activities in addition to storage activity for the purpose of export and re-export out of the country as long as the scope of this activity is permitted by the system of the free zones in accordance with the provisions of Law No. 8 of the year 1997 related to the Investment Guarantees, Incentives, its implementing regulation and its amendments. Activities which may not be permitted by free zones system Industries of Tobacco, Altumbak Molasses, Snuff, Cigarettes and Cigars. Industries of Alcohol and alcoholic beverages. Industries of weapons, ammunition, explosives and other industries, which is related to the national security of the country. The activities which may be permitted by free zones system The State allowed more than 40 traditional fields of industrial activities for the investor, whether this was a major activity for his project or a complementary activity to his main project, and they are summarized in alphabetical order as the following: Fields of Electronic Industries Manufacture of computers' programs and its operating software. Manufacture of electronics, computers, hard ware and its spare parts Manufacture of light and accurate electronic equipments and its spare parts.- Manufacturing of devices, information and communication networks and satellite transmission Fields of Leather Industries and Shoes Manufacturing of leather and leather products Manufacturing of Shoes and its accessories

Fields of Pharmaceutical Industries and Medical Preparations Manufacturing of medicine, medical and pharmaceutical preparations Manufacturing of Perfumes, cosmetics and toiletries

Fields of Food Industries Manufacturing of food and food products Girdling and gradating of agricultural crops Drinks and juices manufacturing Manufacture of soft drinks and its concentrates-

1 Fields of Metallurgy, Metal Production Manufacturing of metal products Manufacturing of household appliances and hotels equipments Ship Cracking and scrapping and metal structures Manufacturing of Jewelry, precious metals and gemstones

Fields of Textile and Clothing Industries Manufacturing and production of yarn, textiles and fabrics Manufacture of furniture and ready- made clothing. Manufacture of carpets, rugs, mats and floor coverings Manufacturing of accessories, production and display of ready- made clothing.

Fields of Chemical Industries - Manufacturing of chemicals, dyes and detergents. Manufacture of industrial gases

Fields of Cottage Industries, Furniture and Cabinet Works Manufacturing of wood, furniture and wood products Manufacturing of Glassware, crystal, glass products

Fields of Ceramic and Stone Industries Manufacturing and formation of stones, marble and granite Manufacturing of Ceramic, porcelain and refractory materials Manufacturing of Porcelain and china Manufacturing of materials and supplies of construction and cement Fields of Engineering Industries - Manufacturing of tools and electrical appliances. - Manufacturing of automotive, transportation, and its nutrient industries. - Manufacturing of Bicycles and light transport means. - Manufacturing of tools, medical and optical equipment. - Manufacture of machinery, plants and petroleum equipment. - Manufacture and assembly of machinery and equipment of industrial and service production.

2 - Manufacturing, shipbuilding and marine and floating units. - Manufacturing of automatic control panels, supplies of electricity, lighting and cable. - Manufacturing of cooling equipment and devices, ventilation and air-conditioning. - Manufacturing of equipment and devices of agricultural production, greenhouses and its operating accessories. Fields of Paper, Printing and Packaging Industries Manufacturing of paper, cardboard and supplies of printing and publishing. - Manufacturing of stationery stuff and office - .supplies .Manufacturing of materials and supplies of packaging. - Printing and publishing industry - Non- traditional industrial activities under free zones system General Authority for Investment and Free Zones strongly allows the investor.....to establish his project by working in one of Fields of non-traditional industrial activities under free zones system for the service of development projects and to accelerate the development pace in supporting the national economy, and can be summarized as the following: Fields of Green Processing Industries Fields of New and Renewal Energy Production .Production of Biofuel and green products - Manufacturing of materials and supplies of - Manufacturing and recycling of waste which - .renewable solar energy production .conforming to environmental specifications Manufacturing of materials and supplies of - .renewable energy production from wind

3 Permitted service activities under the free zones system The State allowed about 20 fields of service activities for the investor to establish his project and practicing one of these fields, whether it was mainly or complementary activity to the main activity of his project, and can be summarized in alphabetical order as the following: Fields of establishment, management and operation of facilities and projects - Services of supervision on the establishment, management and operation of facilities. - Services of Management, operation, development and maintenance of marine ports. - Services of assembling, establishment and maintenance of industrial production lines. - Services of preparation of studies and providing consulting for the operation of facilities and projects. Fields space broadcasting and media production - Services of Media production and technical related services. - Services of Radio and television broadcast and provide technical related services. Fields of oil services - Services of drilling and development of oil wells and providing technical services to them. - Services of rental, repair and maintenance of petroleum equipment and consulting. - Services of petroleum exploration and seismic survey. - Services of shipping, transporting and exporting of oil / natural gas through pipelines. Fields of Informational publishing and digital communication - Informational content production services and the creation of websites. - The electronic content production services for programs and applications of Computers. - Services of production, providing, transfer and the flow of information and the related services thereto. - Services of communications and digital broadcasting to mobile networks and call center. - Services of maintenance and repair of computer Hardware and communication devices. - Services of maintenance and repair of computer Software, communications and its operating programs. Fields of transport, shipping and logistic services - Services of navigation and air shipping, airlift and the related services. - Services of repair and maintenance of machinery, equipment, diesel engines and means of transport.

4 - Services of marketing and promotion, direct supply and providing consultancy. - Services of maritime navigation, leasing and renting, maintenance and consulting. - Services of dealing with containers and the maintenance and repair services of its equipment. - Services of export and re- export and the related logistic services.

Fields of investment under the free zones system The General Investment Authority allows the investor to establish his own project under the private free zones system to practice some fields of industrial activities as well as some fields of service activities, which are not allowed within the general free zones in accordance with the requirements of public free zones system in one of the following fields: - Fields of ports development and the related logistic services. - Fields of trading in containers and the related technical services. - Fields of specialized petroleum industries and the related services. - Services of symbiotic reinsurance and providing the related technical services. - Fields of designing, construction, management, operation and maintenance of electricity power plants. - Labor-intensive Industrial fields achieving high-added value for the national economy. - Fields of agricultural and food industries and the related complementary industries. - Fields of reclamation and cultivation of land and practicing the related industries. - Fields of breeding and fattening cattle, poultry and fish and practicing the related industries. The investor can also establish his own project under the private free zones system outside the scope of public free zones to trade in any of the permitted activities under the system of public free zones in one of the following cases: -The lack of space available for the establishment of your project in the public free zones in away achieving the feasibility of operating economies. - The nature of your business activity that may require technical and environmental requirements which may not conform to the nature of the activities of projects established within the free zones. - the site of your Project is an effective factor in the operating economics, such as the need for adjacency to sources of raw materials, or the need for adjacency to a particular port, or for a particular land road in considerations regarding the transfer of raw materials that are used in the operation, the export of goods or services that is produced.

5 6 Conditions of the establishment of your industrial project under the private free zone system 1. provided that there not an appropriate site for an activity of a project within the public free zones and the required site in the private free zone is the determining factor for the economics of the project as the need of its presence near the sources of raw materials (areas of extraction of raw materials or assembly centers of certain crops ) or the need of it to be near to a specific port or land road in considerations related to the transfer of raw materials or products concerning its large size, weight or its expiration. 2. if the project takes the form of holding company or limited liability company or the form of a branch in one of the following cases: - A branch of a foreign company, in this case your project is committed to provide the parent company's commercial register authenticated from the Egyptian embassy abroad before issuing the license for your project as a branch to carry on the activity. - A branch of one of the companies operating in the domestic investment system provided the presence of the parent company within the customs departments. - The expansion of a private free zones projects in a location other than its current location. 3. The paid up capital or the issued capital of your project is not less than $ 10 million, and its investment costs of $ 20 million or its equivalent in foreign currencies provided that the full repayment of the capital is completed within a period not exceeding three years from the start date of the license. 4. The number of permanent employment in the project is not less than 500 workers to be appointed before the end of the first year of the start of the project with providing an acknowledgment of this. 5. The proportion of exporting products of the project should not be less than 75% with the exception of ready- made clothing and furnishings which is not less than 95%, strategic and mining industries which its export ratios determined when exercised, according to the controls and within the limits established by a decision of the competent minister. 6. Providing the ownership document of the project site, provided that the area of this site is not less than 20 thousand square meters. 7. The local ingredients ratio used by the project is not less than 20% excluding the mining raw materials or the extracted from the component ratio. 8. Providing a schedule to begin in carrying on the activity with a commitment to the conditions and duration mentioned in the approval decision of establishing the project provided that the specified period not to be exceeded only after the approval of the General Authority for Investment and Free Zone. 9. procuring the approval of all competent authorities related to the activity of the project such as maritime transport sector at the Ministry of Transport / Petroleum Authority / body of a port that the project is under its customs circle, as well as the approval of the Environmental Affairs authority to practicing the activity in accordance with the environmental requirements before issuing a license to practice the activity. 10. Providing a statement for the power source required by the project and a pledge to abide by the Supreme Council of Energy resolutions. 11. Receiving good security query results of the shareholders and foreign partners in the project, if any. 12. complying with implementing the following described requirements for buildings within the project site:

7 - Full spatial and financial separation between the site of your project activity licensed under the private free zones, and any other activities practiced by your project.

- The height of fences surrounding the location of the activity referred to is not less than 3 and not to be adherent to the factory's premises. - The project must have one gateway for the entry and exit of goods interspersed with a gate for entry and exit of individuals and another gate for emergency. - preparing suitable rooms to be used as residencies for authority and custom delegates next to the main gate of the site. - Shipping, loading and unloading of equipment and goods must be done within the scope of the private free zone and not outside it. - project's commitment to the requirements of the civil defense, fire and industrial security to secure individuals and facilities in case of facing dangers. - The project has to provide a medical clinic.

The establishment of your industrial project under the private free zone system may be exempted The general authority for investment allows the investor to establish his project under private free zones system without complying with the minimum requirements of the private free zones in the following cases: - In case the site area in which your project is being established included in the national plan of the country targeted to attract - investment for its development, such as the provinces of South Valley. - To be among the shareholders in your project a world-famous company. - The project is practicing one of Fields of labor-intensive industrial activities. provided the project meets the following percentages of the requirements prescribed: 50% of the minimum ..... paid-up capital or issued ..... contained in the requirements of the work under the private free zones system. 50% of the minimum ..... for the investment costs ..... contained in the requirements of the work under the private free zones system. 50% of the minimum ..... for the area of your project ..... contained in the requirements of the work under the private free zones system. 75% of the minimum ..... for the number of workforce ..... according to the requirements of the work under the private free zones system Provided complete 100% of these requirements within a period not exceeding three years from the date of issuance of the license to practice the activity Requirements to establish your own service project under private free zones system 1. The issued capital for your project shall not be less than five million US dollars, according to the required project activity, in the case of establishing a project to practice maritime transport and shipping agency activity, the required investment costs is not less than ten million US dollars or its equivalent in foreign currency acceptable by the Egyptian bank.

8 2. The shipping transport projects and shipping agency shall begin to own or lease at least one ship and practicing service activities shall be limited on the services of owned vessels only, taking into account the compliance with all the requirements and regulations of the maritime transport sector at the Ministry of Transport. 3- Procuring the approval of the competent authorities, such as the maritime sector at the Ministry of Transportation - General Authority for river transport, the Ministry of Civil Aviation - Holding Company for Airports and the Egyptian General Petroleum Corporation ... etc. 4. Receiving good security query results of the shareholders and foreign partners in the project, if any. 5. Providing the ownership document of the site on which the project is being established if the nature of practicing the activity required a site for it. 6. The administrative residencies of the service project do not deserve any exemptions and benefits granted by the private free zones for the projects operating under its system with the exception of marine services projects in the case of practicing the activity through specific administrative residency. 7. Oil Services projects shall commit to deal with clients from outside the country, free zones projects or exempt companies operating under the Egyptian General Petroleum Corporation. 8. The symbiotic re-insurance projects shall comply with practicing its activity in according to the following controls:-

The project shall take the form of a joint stock company. • The minimum of the issued capital shall not be less than12 million dollars.• Proportion of project funds investments inside the country shall not be less than 75% of its total financial investments.• • To comply with all regulations issued by the General Financial Supervisory Authority • To comply with regulations and provisions of Law No. (10) for the year 1981 on the supervision and control of insurance, its implementing regulation and amendments. • To comply with all regulations issued by the General Financial Supervisory Authority.