🏭 The Industry Ministry is targeting 28 sectors as investment targets in a bid to strengthen local manufacturing and national industries, meet market needs, and reduce the import bill. The new windows come as an open invitation for serious investors to inject new capital or expand operations in the specified sectors, according to an Industry Ministry statement published late September.

The list serves not as an announcement, but rather a stepping stone in a new integrated strategy to boost local production and the economy in a bid to meet domestic market needs, according to the ministry, which also stressed that success depends on local and foreign investor response to the invitation.

The sectors targeted include:

  • Energy and water: Components for solar and wind energy, as well as desalination and treatment plants;
  • Transport and automotive: EVs and their components, tires, glass, and suspension systems;
  • Tech: AI solutions, industrial control systems, and robotics;
  • Food and health: Baby formula, med products and cosmetics, and alternative and health-conscious food products;
  • Metals and chemicals: Aluminum, petrochemicals, soda ash, and iron and its derivatives;
  • Textiles and leather: Ready-made garments, textile recycling, and developed leather products.

Why these industries in particular? This list of industries was set based on the availability of energy (gas, electricity, mazut, and coal), average monthly wages for technical workers, and the availability of raw materials and the necessary facilities and technologies. Local market needs were also considered, as well as Egypt’s strategic location, which would aid in the distribution of these industrial products.

The gov’t is wagering on cooperation between local and foreign investors to drive industry forward through tax and financial incentives and investment assurances, as well as programs designed to support innovation and entrepreneurship, according to Industry Minister Kamel El Wazir. These efforts represent a key pillar for actualizing the objectives of Egypt’s Vision 2030 in building a sustainable economy capable of accessing global markets.

The potential investments will contribute to injecting new capital into government-priority sectors, in light of the incentives and advantages to which President Abdel Fattah El Sisi pays special attention through the Supreme Council for Investment, such as the golden license system, facilitating licensing procedures, and allocating industrial lands, Egyptian Manufacturers’ Association board member Ali Zein El Abedeen told EnterpriseAM. The announced potential investments, he affirmed, cover strategic sectors all of which align with the transition towards clean technology.

The move comes at a time when countries across the region, such as Saudi Arabia, Morocco, and Turkey, are seeking to launch similar lists to attract industrial investments, also in an effort to localize production. The announcement of the list gives Egypt a competitive advantage, the ministry claims, especially when considering the ongoing infrastructure projects across ports and transport networks, which is set to bolster the country’s position as a regional industrial hub.

The incentives announced thus far: As the government works to foster an attractive environment for industrial investments by easing licensing procedures, accelerating digital transformation, and advancing infrastructure via the introduction of new roads, ports, and industrial zones, it has launched financing initiatives to support these goals. These include working capital and production line initiatives with 15% interest rate financing to operate new factories and support expansions, El Wazir said during the launch of Egypt’s Narrative for Economic Development in September.

This is in addition to a new initiative to restructure faltering factories in cooperation with the Central Bank of Egypt through an investment fund in which the banking sector is participating, allowing for an injection of financing in exchange for a partial contribution to the companies’ capital, with investors retaining the right to reclaim their share if the factory generates revenue.

An investor’s biggest challenge is the absence of incentives that encourage them to enter the market, not local demand, Federation of Egyptian Industries board member Mohamed El Bahy told EnterpriseAM. What this means is that the list of potential investments won’t prove effective unless linked to clear incentives such as subsidized land and competitive energy prices. Competition with foreign industries is also made difficult on account of customs duties and bureaucratic complexities, according to El Bahy.

An already-expanding investment base: Some 2.6k plots of industrial land have been allocated through the Egypt Digital Industrial Platform since its launch, and more than 6k new operating licenses were issued in the past year alone, contributing to the operation of 69 new factories, and over 230k new jobs.

For industrial expansion to truly succeed in Egypt, clarity in government policies, quick decision-making, and a direct link between potential investments and incentives are required. This would result in a competitive environment truly capable of attracting both local and foreign investors long-term, industry experts told EnterpriseAM.

Talking numbers: Non-petroleum manufacturing activity recovered to a record of 14.7% in 2024/25, surpassing a two-year period of contraction. This was reflected in the monthly index of manufacturing and extractive industries, which achieved growth of 14.0% in 2024/25, compared to a contraction of 5.1% in 2023/24 and 4.6% in 2022/23, according to a cabinet statement.

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