{"id":611197,"date":"2023-12-03T00:00:00","date_gmt":"2023-12-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/inside_industry\/what-the-government-is-doing-to-boost-egypts-marble-granite-industry\/"},"modified":"2023-12-03T00:00:00","modified_gmt":"2023-12-03T00:00:00","slug":"what-the-government-is-doing-to-boost-egypts-marble-granite-industry","status":"publish","type":"inside_industry","link":"https:\/\/enterpriseam.com\/egypt\/inside_industry\/what-the-government-is-doing-to-boost-egypts-marble-granite-industry\/","title":{"rendered":"What the government is doing to boost Egypt\u2019s marble + granite industry"},"content":{"rendered":"

Is Egypt\u2019s marble + granite industry on its way to becoming a key contributor to our <\/strong>exports?<\/strong> After years of falling by the wayside, the government is turning its eyes to the marble and granite industry as it hopes to turn the Shaq El Tebaan \u2014 the largest marble and granite industrial cluster in the country \u2014 into a hub for the production and export of the stones. Recent moves from the government are making industry players optimistic that their sector is on its way to being resuscitated, with several key issues being addressed while paving the way for tech modernization and infrastructural improvements. <\/p>\n

A look at the industry:<\/strong> The broad majority of the marble + granite industry is concentrated in the Shaq El Tebaan in Maadi\u2019s Tora area, east of the Autostrad road. The area is comprised of three primary areas: Kotsika, Badr El Laithy, and Shaq El Tebaan, together spanning 1.6k feddans. The area brings together 1,868 factories and workshops all dedicated to manufacturing and exporting marble, with some 45k direct workers and almost as many indirect workers. Shaq El Tebaan has historically been struggling from a lack of attention and development, leading to several compounding issues, but continues to be the hub from which Egypt exports its marble to 118 countries.<\/p>\n

Export figures:<\/strong> Egypt has exported some EGP 11.2 bn worth of marble over the course of the first nine months of 2023, according to data from the Building Materials Export Council seen by Enterprise. That\u2019s compared to EGP 4.5 bn during the same period last year, although these figures have not been adjusted for currency fluctuations. Libya and Saudi Arabia accounted for the largest volume of our exports during the period, the data indicated. <\/p>\n

Despite having plenty of potential, the industry isn\u2019t without its problems:<\/strong> Industry players Enterprise spoke with pointed to a number of key challenges, including that many workshops in Shaq El Tebaan continue to operate in the informal economy, as well as challenges related to procedures for industrial land allocation, accessing infrastructure such as road and electricity networks, and facing high costs for transport and movement of goods in dry ports and on roads. <\/p>\n

What\u2019s being done to support the industry?<\/strong> Back in 2018, the government launched a EGP<\/a>3.6 bn project to develop<\/a> Shaq El Tebaan and push it towards becoming a global hub for the industry, but action on the project began in earnest in recent months. The project is designed to help boost exports out of Shaq El Tebaan to USD 1 bn per year, according to El Badawy Abaza, Vice President of the Federation of Egyptian Industries\u2019 building materials division. The Industrial Development Authority (IDA) has also kicked off a series of meetings and sessions with industry players to address their concerns, acting IDA chair Nahed Youssef said. <\/p>\n

The main goal of the project is to provide Shaq El Tebaan with the facilities, services, and <\/strong>infrastructural network<\/strong> it needs to operate at a higher level of efficiency, while also working on developing the industry itself to turn the area into an integrated city with high levels of manufacturing technology that meets international standards. These developments are geared towards driving more competition and increasing export, while ensuring optimal use of natural resources, Youssef said. <\/p>\n

Infrastructure is a priority:<\/strong> The development plan includes raising the efficiency of internal road networks, linking them to main roads, and setting up more fueling stations. There is also work underway to rehabilitate electricity networks and transformers in the area. The first phase of the infrastructure has been completed, including a complete modernization of the electricity network, and work is underway on water and sanitation infrastructure. The government also plans to set up a dry port and freezone in Shaq El Tebaan, in addition to an investment complex to serve investors, with representatives of all government agencies and banks, according to Abaza. <\/p>\n

Establishing a company to manage the industrial zone:<\/strong> The IDA plans to establish a company to manage the zone two years ago, one of our sources told us, but the decision has yet to come into effect.<\/p>\n

But a big focus is also on making the industry go legit:<\/strong> Investors and workshop owners in the area will be able to reconcile any license violations with the government and legalize their status, with the approval legalization requests currently getting expedited, according to Abaza. Issuing operating licenses in the area is set to take less than six months, with facilities being offered to support investors in meeting financial requirements, he said. <\/p>\n

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