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Egypt’s SMEs can start the new year on a positive note after the government announced its plans on introducing a new law to develop the country’s growing SME sector. Tarek Kabil, Minister of Industry and Foreign Trade, confirmed that the draft law is currently ready and waiting for the approval from the House of Representatives.

He also revealed that the draft law comprehensively defines new tariffs and incentives for SMEs. The move by the government is likely to have far-reaching impact considering that the SME sector accounts for 80% of Egypt’s economy.

The draft law is actually an outcome of the second meeting between the Board of Directors of SMEs Development Authority, Dalia Salem, Head of the European Sector at the Ministry of Investment and International Cooperation (MIIC), and Hisham Ragab, Advisor to the Minister for Legislative Affairs.

As the new law comes into effect, it will replace the previous law. Among other changes, the new law will also empower the SME Development Authority to provide funds and technical support to startups and SMEs.

The revamped strategy of developing the country’s startup and SME sector is a part of the Egyptian 2030 vision under which it plans on paving the way for sustainable growth. The Egyptian 2030 vision also aims to create a competitive and balanced economy fueled by knowledge, innovation, social integrity, and justice. The ultimate objective of this strategic plan is to help the economy grow, while simultaneously improving the quality of life for the common citizen.