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Deal by Design
Welcome to this edition of Law Update, focusing on the evolving M&A landscape across the MENA region. With deal activity and value continuing to grow, the region is seeing increased investor interest alongside a changing regulatory environment.
This edition explores key legal and market developments affecting M&A transactions, including regulatory reforms, foreign investment, governance, due diligence and deal structuring across the region.
In an effort to bolster employee rights and promote economic stability, the Ministry of Planning and Economic Development (the “Ministry”) has introduced a significant policy change. Effective May 2024, Decree No. 27 of 2024 establishes the minimum wage for the private sector at EGP 6,000, a substantial increase from the previous minimum wage of EGP 3,500. This change will be calculated based on the defined wage outlined in the labour law.
Recognising the diverse economic circumstances faced by businesses, the decree includes provisions for exemptions. Establishments experiencing financial or economic hardship may apply for exemption from the minimum wage requirement through the designated procedures outlined by the Ministry.
Additionally, small enterprises with fewer than ten employees are granted exemption from following the newly established minimum wage. This measure provides flexibility to businesses operating on a smaller scale. This decision represents a crucial step forward in promoting equitable labour practices while simultaneously supporting the economic viability of private sector enterprises.
Al Tamimi & Company’s Employment and Incentives team holds extensive experience in labour matters within the Middle East and North Africa region.
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