The law gives as well more financial and non-financial incentives, which targets the companies and institutions that support these enterprises. In ad… - Nevine Gamea

The law has put into effect a stimulating mechanism that will enable enterprises operating in the informal sector to engage in the formal economy. Such a mechanism will allow them to obtain a temporary licence for a period up to five years until their conditions have been reconciled. They will similarly be entitled to a package of financial and non-financial incentives in the same period.

The law encompasses six major pillars. It gives a consolidated definition for MSMEs. A serious problem the MSMEs sector was facing in Egypt is having more than one definition for these enterprises. This has resulted in widescale confusion that negatively affected the sector.

Under the law, the enterprise premises shall be temporarily allocated to the funding institution, thereby securing its fund recovery rights according to the risks it shoulders.