Development Zones and Free Zones Law No.2 of 2008.

This Law consisting of 47 articles provides for all matters relating to the establishment, management and operation of development areas. The boundaries of these areas are determined by a decision from the Council of Ministers. Pursuant to the Law the investors that are registered within the development areas are granted of an array of exemptions and benefits, including (i) income tax rate; (ii) taxes on goods and services; (iii) all customs, duties and other fees and taxes on all materials, instruments, machines forming part of the construction, establishment and equipment of the projects established; and (iv) taxes on profits from transit trade.The Law establishes also a Development Areas Commission which is the responsible body for (i) drawing up the policy for the areas; (ii) regulating the investment environment and the regulation and monitoring of the activities within such areas; (iii) protecting the environment and the natural resources. The Commission shall be administrated and supervised by a Board of commissioners with the following powers (i) register enterprises, issue licenses and certificates; (ii) financial matters; (iii) prepare draft legislation; and (iv) appropriate lands and real estates required for the functioning of the development areas.