Egypt Introduces New Residency Fees

On August 29, 2023, Egyptian Prime Minister Mostafa Madbouly issued Resolution No. 3326 of 2023, which brings about significant changes to the regulations governing residency application fees for foreigners in Egypt. 

This move is part of the Egyptian government's efforts to manage its foreign currency reserves and regulate the residency status of non-citizens within the country.

Key Provisions of Resolution 

Foreigners seeking a residency permit in Egypt, whether for touristic or non-touristic purposes, are now required to provide a receipt demonstrating that they have converted all the necessary fees from U.S. dollars or equivalent free currencies into Egyptian pounds. 

This receipt must be issued by an authorized Egyptian bank or currency exchange company. This provision aims to ensure that fees paid by foreign residents are in Egyptian currency, contributing to the stability of the local economy.

Grace Period for Illegal Residents

The resolution extends a lifeline to foreigners who have been residing in Egypt illegally. These individuals are granted a three-month grace period to "regularize their status and legitimize their residency." During this period, they are required to secure an Egyptian sponsor and pay administrative fees amounting to US$1,000 to the General Administration of Passports, Immigration, and Nationality. This provision seeks to bring illegal residents into compliance with Egyptian immigration laws.

Rationale Behind the Resolution

The introduction of these new residency fees and regulations serves several key purposes:

• Foreign Currency Reserves: Egyptian authorities have cited the need to bolster the country's foreign currency reserves as a primary motivation for these changes. Egypt has been facing an ongoing shortage of foreign currency, which has strained its ability to meet financial obligations to creditors and purchase essential goods and commodities.
• Economic Stability: By requiring fees to be paid in Egyptian pounds, the government aims to stabilize its domestic currency and reduce dependence on foreign currencies. This move aligns with broader economic strategies to safeguard the country's financial stability.

Public Reaction and Support

Muhammad Rizk, a prominent figure in the Nation's Future Party and a member of the Egyptian House of Representatives, has expressed support for Resolution No. 3326. 

He believes that collecting residency application fees in U.S. dollars is a crucial step toward bolstering the country's reserve of U.S. dollars in the Egyptian public treasury. This endorsement reflects the political backing the resolution has received.

Legal and Academic Support

Mohamed Mahran, a respected professor of international law at the University of Alexandria, has endorsed the issuance of the new resolution. 

He applauds the government for aiming to regulate the residency of foreigners in Egypt while simultaneously aligning with international laws concerning migration and the facilitation of residence procedures. Mahran's support underscores the resolution's alignment with legal and academic principles.

In conclusion, Egypt's introduction of new residency fees and regulations represents a significant policy shift aimed at addressing economic challenges and ensuring compliance with international standards for residency procedures. The resolution has garnered support from political and academic circles, signaling a consensus on the need for these measures to safeguard Egypt's financial stability and regulate foreign residents within its borders.