Practical guidance for sponsors structuring cross-border JVs under the 2026 amendments to the Investment Law — capital controls, GAFI filings, and exit mechanics.
The 2026 amendments to the Egyptian Investment Law loosen several capital-movement restrictions for qualifying cross-border joint ventures, but the qualifying criteria are narrow. Sponsors should treat the new framework as an opportunity with careful gatekeeping rather than a default path.
Qualifying criteria
The relief provisions apply to JVs with a minimum committed capital of USD 5 million, a majority-Egyptian operational footprint, and registration with the General Authority for Investment (GAFI) within 90 days of closing.
Exit mechanics
Drag-along and tag-along provisions should be stress-tested against Article 42 of the Companies Law, which limits automatic transfer rights in closely-held joint-stock companies. A majority pre-emption mechanism often offers a more enforceable alternative.
