The Higher Legislative Reform Panel, under Prime Minister Ibrahim Mahlab, has approved a bill for listing terrorist entities.
The bill is to fill a legal gap in the Egyptian legislative system, the panel said in an explanatory memorandum on Monday.
The bill will provide a comprehensive legal framework for listing and defining terrorist organizations and tracking down their funding, it added.
The draft law is part of the government's efforts to uproot terrorism which hinders its planned democratic procession, it said.
Under the new bill, two lists will be formed: one for organizations and the other for people who are involved in terror acts.
The listing requests will be provided by the Public Prosecutor to be considered by the Cairo court of appeals.
An organization will be blacklisted for three years unless a final verdict is issued by the court.
People or organizations labeled as terrorists have the right to appeal against the decision within 60 days of its issuance.
The bill stipulates that those who are blacklisted will be considered wanted criminals.