Investment incentives and benefits for small and micro enterprises contained in Investment Law No. (3) of 2025

Introduction

Small and micro enterprises are a key pillar in supporting the local economy, and governments are keen to provide the necessary facilities to enable them to grow and be sustainable. In this context, Investment Law No. 3 of 2025 includes a range of incentives and benefits that aim to encourage these projects, especially those whose cost is less than or equal to $100,000.

The most important incentives and benefits

The law offers several exemptions and benefits that help ease the financial and administrative burdens on small projects, as follows:

1. 100% exemption from customs duties and tax on fixed assets, which contributes to reducing establishment costs.

2. 100% exemption from customs duties on production inputs throughout the life of the project, which enhances the productive capacity of these projects.

3. Exemption from all government fees on licenses, approvals and permits upon incorporation and throughout the life of the project, making it easier to start the business.

4. Exemption from all types of direct taxes on income throughout the life of the project, provided that this exemption starts from the date of commencement of production or activity, which encourages investment in this sector.

5. Free utilization of land for the life of the project, for projects built on state-owned land, which contributes to reducing operating costs.

The importance of these incentives

These benefits constitute a great incentive for small and micro entrepreneurs, as they contribute to:

- Reduce the financial burdens on new investors.

- Enhancing the competitiveness of these projects in the market.

- Encouraging entrepreneurs to invest in the productive sectors.

- Supporting economic development by providing job opportunities and stimulating local production.

Conclusion

These incentives emphasize the government's orientation towards supporting small businesses and enhancing the business environment to achieve sustainable economic development. This law reflects a new vision for investment, which aims to create an attractive and facilitative economic climate for small enterprises, thus contributing to achieving inclusive and diversified economic growth.