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Growing an SME in Egypt: The Incentives of Law 152 of 2020 Explained
Egypt's Micro, Small and Medium Enterprises Development Law (Law 152 of 2020) offers tax and non-tax incentives and a one-stop shop for licences. Here is how the law defines SMEs and how growing companies can use it.
By Athar Network editorial team · Updated
- SMEs Egypt
- MSMEDA
- Law 152 of 2020
- SME finance
- Business growth
Micro, small and medium enterprises (MSMEs) make up most businesses in Egypt. In 2020 the country replaced its 2004 small enterprises law with Law No. 152 of 2020, the Micro, Small and Medium Enterprises Development Law, which expanded the role of the Micro, Small and Medium Enterprises Development Agency (MSMEDA) and aims to bring informal businesses into the formal economy.
This is a summary for business owners, not legal advice. Check current details and eligibility with MSMEDA.
How the law defines enterprises
| Category | Annual turnover |
|---|---|
| Micro | Under EGP 1 million |
| Small | EGP 1 million to under EGP 50 million |
| Medium | EGP 50 million to EGP 200 million |
Capital thresholds also apply; micro enterprises, for example, include those with capital under EGP 50,000.
The incentives
- Tax incentives: exemptions from stamp duty, notarisation and registration fees for required land, and a 2% customs rate for MSMEs, plus capital gains tax incentives.
- Non-tax incentives decided by MSMEDA's board: support for training costs, land allocation and reduced guarantees.
- Finance: guarantees that support lenders' recovery of funds, which makes banks more willing to lend to smaller firms.
- Licensing: the law calls for one-stop shops that bring licences and approvals together.
Source: the text summary of Law 152 of 2020 on UNEP's LEAP database.
Beyond incentives: what helps SMEs grow
Incentives lower costs, but growth comes from capabilities. The questions SME owners raise most often at our events are practical ones:
- Finance readiness: clean books, tax compliance and simple management accounts are what lenders check first.
- Digital tools: cloud accounting, e-invoicing and online sales channels are now basic infrastructure.
- Governance: an advisory board, even an informal one, helps a founder-led company make better decisions.
- Dispute resolution: knowing how commercial disputes are settled protects cash flow.
- Sustainability: larger buyers and exporters increasingly ask their suppliers for ESG and carbon data.
Meet the people who can help
The 5th Egypt Business Solutions Summit on 2 November 2026 at the InterContinental Citystars in Cairo is built around these questions, with sessions on financing and scaling SMEs, dispute resolution, AI-enabled business models and operational excellence. Its speakers include Mostafa Hassan, CEO of MSMEDA, and leaders from the Egyptian Tax Authority, the African Development Bank, Microsoft Egypt and SAP Egypt.
Questions about this topic, or want to take part in our events? Request a meeting or browse our events.