1.       The Egyptian government adopts new policies to create more investment opportunities. The process of reducing the customs tariffs encouraged the producers and opened the Egyptian markets to more foreign trade. Furthermore, the major reduction of taxes imposed on companies and individuals has given more privilege to Egypt than other similar countries, also respecting the fair competition encourages more flow of investment. 2.       In this context, the Egyptian law no.230 was issued and was amended by law no.8 in 1997 on “Investment Warranties and Incentives” to grant more privileges for investors. The new law includes the following privileges: ·         Allowing foreigners a full right of possession of the projects. ·         Providing necessary guarantees against the nationalization or confiscation of projects. ·         Exempting the products of the project from pricing inspection. ·         Allowing projects to refund the capital and profits to the investor’s original country. ·         Exempting the salaries of foreign experts from the income tax if they are residing in Egypt for less than one year. ·         Imposing a unified importing tax by 5% on the assets and imported construction supplies used for building the project. ·         The tax exemptions given at the end of the first financial year of establishing the project are as follows: i.      A five-year exemption for projects established in the old valley. ii.      A ten-year exemption for projects established in the new industrial zones and the remote areas. iii.      A twenty-year exemption for projects established in the new valley (Toshka, East Owainat, Kharga, ..etc) iv.      A life time exemption for projects established in the free zones. 3.       The law authorized one specific authority - the General Authority for Investment- to be the sole responsible body in dealing with investors and granting them the necessary exemptions ( custom and tax exemptions), as well as having the authority to settle various disputes between investors and the competent authorities. Moreover, this Authority is the specialized administrative body in implementing the law, and takes all the necessary actions on behalf of the investor with competent authorities. 4.       The law allows establishing projects under the name of foreign currency capital to give investors the right to determine the whole capital in foreign funds. This privilege was included to comply with the main request of foreign companies to attract foreign investments. Consequently, this will lead to doubling the flow of foreign funds to the national banks.