The industrial sector is expanding through new land offerings to boost local manufacturing: The Industry Ministry has launched a new phase of industrial land offerings today, available via the Egypt Digital Industrial Platform until 8 December. The initiative, which is being carried out in collaboration with the General Authority for Investment (GAFI), includes over 2.6k plots spanning 15.2 mn sqm across 37 industrial zones in 24 governorates, catering to diverse industries like logistics, automotive, renewable energy, food production, hospitality, and building materials. The government is aiming to deepen local manufacturing and enhance integration into global supply chains, as part of a broader effort to reduce import dependency, stimulate industrial growth, and increase the sector’s contribution to GDP from 14% to 20-30%.

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Big changes are taking place in land allocation: Investors can now reserve two plots — one primary and another as a backup — instead of one for the first time, expanding opportunities for establishing industrial projects. Previous applicants who met the financial and technical criteria in prior rounds but were unsuccessful will be given priority in this phase.

The digital platform has also simplified the process: The platform provides several services including allocating industrial land for investors through the investment map, receiving operational licenses, as well as an annual follow-up service. This streamlining eliminates the need for traditional paperwork, making the process faster and more transparent for both local and foreign investors.

Flexible acquisition models ease financial burdens: Lands are offered under ownership or usufruct arrangements at actual infrastructure costs, following directives from the prime minister to alleviate financial pressures on investors. Annual usufruct fees are set at 5% of the land ownership price, with payment terms designed to reduce upfront costs.

The government has introduced several incentives to reduce costs and simplify procedures for investors. Application fees have been halved to EGP 2.5k from EGP 5k, and deposit requirements lowered to 10% of the land value, with no need for bank guarantee letters. Additionally, investors can submit simplified project outlines instead of comprehensive feasibility studies, while financial proof requirements have been eased to cover 50% of the land value rather than 25% of total project costs. To streamline the process further, all applications can now be submitted electronically via the investment map platform.

Sector players are optimistic, but challenges remain: Manufacturers and business leaders are welcoming the increased availability of land and government support, which addresses a longstanding scarcity. The new land offerings come amid heightened demand for industrial plots, especially as the government focuses on localizing supply chains and integrating them into global networks.

However, financing and energy costs remain hurdles. Despite the land offerings’ positive impact, more robust financing tools are needed to address financing and energy costs, such as activating the 15% interest industrial financing initiative, establishing industrial funds, and empowering the Industrial Development Bank to directly finance projects like production lines and renewable energy solutions, member of the Federation of Egyptian Industries Mohamed El Bahy told EnterpriseAM.

Remember: Transport and Industry Minister Kamel El Wazir last month directed firms intending to establish large factories to build wind or solar power stations to fuel them, a move that comes as firms report extremely high electricity bills, including some in excess of EGP 100k in October. This situation has prompted many to look into establishing solar power stations to help reduce production costs and remain competitive in export markets.

Further support is also essential: Industrial land pricing needs to be reassessed to ensure affordability. Proposals include pricing land at infrastructure cost only, offering deferred payments, or introducing installment plans linked to project timelines. Expanding renewable energy projects is another key priority, aiming to reduce reliance on traditional energy sources and address the challenges of rising energy costs. Expanding the issuance of integrative decisions for the industry is crucial, alongside broader land offerings, mechanisms to provide clean energy, and increased industrial incentives that are not limited to specific sectors, member of the Businessmen’s Association Ahmed El Zayat told EnterpriseAM.

Your top industrial development stories for the week:

  • Al Mansour and SAIC to establish car assembly factory: Al Mansour Automotive is partnering with China’s state-owned SAIC and another unnamed partner to establish a factory for assembling both traditional and electric cars for SAIC-owned brand MG in Egypt.
  • Polish renewables player Hynfra plans to set up a USD 10.6 bn green ammoniafacility in Egypt with a production capacity of 1 mn tons per year. The first phase of the project, set to operate by 2030, will cost USD 1.6 bn and have a production capacity of 100k tons of green ammonia per year.
  • China Glass Holding subsidiary CNG Egypt New Energy Glass beganconstruction work on a USD 300 mn glass factory. The project will have a flat glass production line with a daily capacity of 1k tonnes and a photovoltaic glass production line with a daily capacity of 800 tonnes.
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