Egypt Considers Expanding Licensing for Fund Managers and Tax Exemptions
The Financial Regulatory Authority and the Egyptian Exchange are considering amending the Capital Market Law to allow limited liability companies to manage funds, alongside efforts to expand tax-exempt fund categories.
The Financial Regulatory Authority and the Egyptian Exchange are working on amending Article 29 of the Capital Market Law to allow limited liability companies and simple limited partnerships to obtain licenses to manage investment funds.
The Egyptian Exchange seeks to expand tax-exempt fund categories from five to 38, including gold and precious metals funds. The Tax Authority is studying the proposal, which can be approved by a decree from the Minister of Finance.
The net assets of the funds reached 471 billion Egyptian pounds at the end of last June, distributed across 224 funds, while no timeline has been set for the amendments.
If approved, the amendments could pave the way for more companies to manage investment funds and stimulate new inflows into regulated savings and investment instruments.
What do these terms mean?
Investment Fund: A vehicle that pools money from investors, managed by a specialized manager to invest according to a declared strategy.
Limited Liability Company: A type of company in which each partner's liability is limited to their share of the capital.
Tax Exemption: The waiver or reduction of tax due on a specific type of income or financial instruments.
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