Industry Ministry preparing to launch new industrial land leasing scheme for SMEs

The Industry Ministry is preparing to launch a new industrial land leasing scheme for SMEs that lets manufacturers spread land payments over 21 years, Industry Minister Khaled Hashim said at an AmCham Egypt event attended by EnterpriseAM. SMEs will be able to lease industrial land with the option to acquire ownership over time, removing what Hashim called the single biggest obstacle to industrial investment. “The main impediment is the cost of land and even the availability of land,” he said. “I want to remove this impediment, especially for SMEs.”

Why it matters: The scheme is a concrete move in the ministry’s broader push to lift non-oil exports from USD 48 bn in 2024 to USD 100 bn by 2030 while improving the country’s trade balance through greater localization of feeding and complementary industries. Priority sectors named by Hashim include textiles and apparel, food processing, automotive, electronics, electrical equipment, and pharma.

The structural argument: Supporting SMEs sits at the center of the ministry's industrial agenda, with Hashim arguing that Egypt lacks a sufficiently broad base of small manufacturers capable of producing future industrial champions. “We need to have the pyramid in the right shape. We need to have a big base of small into medium into large,” he said.

A ‘Talabat for industry’ model: Hashim also floated the idea of creating industrial e-commerce platforms that would connect manufacturers and suppliers in a manner similar to consumer delivery applications. The proposed platforms would allow SMEs to showcase their products, connect with larger manufacturers seeking local suppliers, and build credibility through customer ratings and performance reviews. “We need a platform like Talabat for industry,” Hashim said, adding that he would prefer the initiative to be developed by the private sector rather than the government.

What’s next: The ministry is working on an industrial investment fund structure designed to channel household savings into manufacturing and technology projects. The first two funds are expected to launch in late August or early September, creating a new source of financing for industrial expansion while offering retail investors exposure to productive sectors of the economy, Hashim said. The ministry is revamping the Industrial Modernization Center as a hub for industrial research, supplier development, innovation, and AI adoption — a technology park in Alexandria is expected to open around September as part of those efforts. Additional initiatives also include an industrial villages program aimed at creating localized manufacturing clusters based on the competitive advantages of Egyptian villages.