Egypt
GAFI free zones, ITIDA Export-IT 10-35% rebate, post-EGP-devaluation FX repatriation reality.
Egypt is the hard-mode chapter of MENA. The 2024 EGP devaluation traumatized the funding environment, but the post-devaluation framework is more stable than what came before. ITIDA's Export-IT cash-rebate program is one of the best in the world (10–35% on value-added export proceeds), and GAFI's 2025 RiseUp framework opened a 2-hour electronic free-zone setup path. The catch: FX repatriation is still operationally tight, and most ambitious Egyptian founders are running US-incorporated companies with engineers in Cairo on remote-USD payroll.
Entity
The standard Egypt vehicle is an Egyptian LLC (commonly called S.A.E. for Shareholding, or WLL for Limited Liability — the Arabic forms differ) registered with the General Authority for Investment and Free Zones (GAFI). Online setup, EGP 30–80K (~$600–1,600), 4–8 weeks for a standard mainland LLC.
For tech founders, the more interesting path is GAFI's RiseUp 2025 initiative:
- Free-zone status for service-exporting startups.
- ~9,000 sqm of office space allocated under the program.
- Full customs and tax exemption on imported equipment.
- 2-hour electronic company setup (a step-change from the historic 4–8 weeks).
- Eligibility: revenue from exports (i.e., USD-billing), not domestic Egyptian customers.
The choice is operational: mainland LLC if you serve Egyptian enterprise customers in EGP; free-zone (RiseUp) if you bill in USD/EUR/GBP and your customers are abroad. For a US-bound founder, the free-zone path is the default.
FX and capital control
The 2024 EGP devaluation — March 6, 2024 flexible exchange rate regime adopted, USD-EGP 38% drop in a single day, IMF $8B program. Traumatic for the funding environment but normalized FX availability post-stabilization. The EGP/USD rate stabilized in the 47–50 range through late 2024 and 2025 and is now closer to a floating regime.
Repatriation reality: USD inflows can come in freely (Egypt wants the dollars). USD outflows for dividend repatriation, license fees, and intercompany services require CBE (Central Bank of Egypt) Form 4 documentation through the remitting bank. Pre-devaluation, this was severely backed up — outbound wire queues of 6–18 months were common. Post-devaluation, queues have cleared but every wire still requires Form 4 + supporting commercial documentation.
Mitigant — the structural fix that successful Egyptian founders adopt:
- Keep operating expenses in EGP (local payroll, office, EOBI-equivalent contributions).
- Keep revenues in USD (US-bound customers, GAFI free-zone framework).
- Remit USD through the GAFI free-zone framework — free-zone status entitles the entity to retain USD without mandatory conversion.
For a founder running a Delaware C-corp with engineers in Cairo, the cleanest structure is: Delaware Inc bills US customers in USD → Egyptian free-zone entity provides services to Delaware Inc via intercompany agreement → engineers paid in EGP (after USD-EGP conversion at the prevailing rate) plus a USD top-up for senior staff via Wise/Deel.
IT export incentive
ITIDA Export-IT Program (Information Technology Industry Development Agency) — one of the most generous IT-export incentive regimes globally.
13th round of registrations extended to October 16, 2025. Cash rebate structure:
- Micro-sized exporters: 35% rebate on value-added export proceeds
- Small: 15%
- Medium: 10%
Plus add-ons:
- +5% for emerging-tech work (IoT, blockchain, cybersecurity, AI)
- +5% for CMMI Level 3+ certification
- +10% for IPR-certified or operations outside Cairo / Giza / Alexandria (decentralization incentive)
Eligibility requires ≥50% Egyptian ownership of the entity. Note: this excludes 100%-foreign-owned subsidiaries — a structural constraint. Most Egyptian founders structure as a 51% Egyptian / 49% Delaware Inc joint venture for the local entity, with the Delaware Inc still capturing the IP and revenue upside via the intercompany agreement.
Hiring engineers
Cairo 2025 market for software engineers:
- Junior (1–3 yr): EGP 20–40K/month (~$400–800)
- Mid (3–6 yr): EGP 35–60K/month (~$700–1,200)
- Senior (6+ yr): EGP 50–90K/month (~$1,000–1,800)
Remote-for-USD developers (working for foreign companies via Deel, Remote.com, or direct contract) earn $40–120K USD/year — 5x local equivalents. This is the brain-drain that Egyptian founders are competing against. Locally-incorporated companies offering EGP salaries lose senior engineers monthly to remote-USD opportunities.
The operational fix that works in 2026: dollarized senior salaries. Pay junior engineers in EGP via local payroll (cheaper for the company, lower take-home for the engineer but matches local cost-of-living). Pay senior engineers a hybrid EGP base + USD top-up via Deel or direct USD contract. The all-in cost lands at $30–50K/year for a senior — roughly 60% of US/EU remote-USD competitor rates, which is enough to retain the strongest local talent.
Statutory: social insurance ~26% of base salary (employer + employee combined), gratuity 1 month per year capped, mandatory 21 days annual leave.
Banking
National Bank of Egypt (NBE), Banque Misr, CIB, QNB Alahli, HSBC Egypt — the top five for corporate accounts. CIB and QNB Alahli are the most foreign-investor-friendly. HSBC Egypt is useful for founders with prior HSBC relationships in UAE, UK, or HK.
Realistic timeline for an Egyptian corporate account: 6–12 weeks post-EGP-devaluation banking onboarding has tightened. Mercury and Brex pair fine on the US side; inbound USD to Egypt works through SWIFT correspondent banking.
For dividend or intercompany-fee outbound wires, the operational chokepoint is the CBE Form 4 filing. Budget 2–4 weeks per outbound wire even with documentation in hand. Keep a US-side operating buffer rather than relying on "just-in-time" repatriation from Egypt.
Pitfalls
Stories
Wins. Halan — Egypt's first unicorn, fintech, $1.1B valuation 2023, Series E led by Chimera Investment. MaxAB — B2B e-commerce, raised $40M Pre-Series-B 2024. Khazna — fintech consumer lending, Series A 2024. Sympl — BNPL.
SWVL — the cautionary tale. NASDAQ via SPAC December 2022 at $1.5B valuation, market cap collapsed to under $50M within 12 months, restructured 2023. The lesson: SPAC liquidity does not equal product-market fit; the post-merger financial discipline must be in place before listing.
The pattern: USD-revenue plays and remittance/cross-border-payment fintech survived the 2024 devaluation. EGP-revenue-only plays struggled. Halan's ability to monetize in USD via cross-border corridor activity is what kept the unicorn intact through the FX shock.
The recommended Egypt-to-Delaware stack
For deeper context: Chapter 1 (incorporation), Chapter 2 (banking and FX), Chapter 3 (transfer pricing).
Notes & sources