Cairo: The Cabinet, in its meeting chaired by Prime Minister Mostafa Madbouli, approved a draft law amending certain provisions of the Law on the Development of Micro, Small, and Medium Enterprises, issued under Law No. 152 of 2020.

According to State Information Service Egypt, the amendment defines medium enterprises as any business with an annual turnover of EGP 100 million to EGP 400 million; or any newly established industrial project with paid-in capital of EGP 10 million to EGP 30 million; or any newly established non-industrial project with paid-in capital of EGP 6 million to EGP 10 million.

Small enterprises are redefined as projects with annual turnover of EGP 2 million up to EGP 100 million; or newly established industrial projects with paid-in capital from EGP 100,000 up to EGP 10 million; or newly established non-industrial projects with paid-in capital from EGP 100,000 up to EGP 6 million. Micro enterprises are defined as businesses with annual turnover below EGP 2 million, or newly established projects with paid-in capital below EGP 100,000.

The amendment allows the competent minister, based on recommendations from the Board of the Micro, Small, and Medium Enterprises Development Agency and in coordination with the Central Bank of Egypt, with approval from the Financial Regulatory Authority, to increase or decrease the minimum and maximum thresholds for turnover and paid-in capital by up to 50%, or to add any other criteria for defining enterprises, in line with economic conditions and the nature of the relevant sector.

The draft law also provides for enterprises operating in the informal economy without a license at the time of the law's enactment to apply for a temporary license to regularize their status within one year from the law's effective date, in accordance with the provisions of Chapter Six of Law No. 152 of 2020. The competent minister may extend this period or set new deadlines upon recommendation from the Agency.

The Prime Minister will issue a decision to amend the executive regulations of the law within three months of its enforcement. Until then, existing regulations and operational rules will remain in effect, to be updated in accordance with the new law.

The amendment reflects the state's ongoing commitment to supporting the micro, small, and medium enterprises sector, creating a favorable environment for investment, and generating employment opportunities for youth, thereby contributing to the growth and resilience of the national economy.