{"id":88539,"date":"2025-08-28T00:00:00","date_gmt":"2025-08-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/08\/28\/egypts-warehousing-market-is-big-but-theres-still-plenty-of-room-to-grow\/"},"modified":"2025-08-28T00:00:00","modified_gmt":"2025-08-28T00:00:00","slug":"egypts-warehousing-market-is-big-but-theres-still-plenty-of-room-to-grow","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/08\/28\/egypts-warehousing-market-is-big-but-theres-still-plenty-of-room-to-grow\/","title":{"rendered":"Egypt\u2019s warehousing market is big, but there\u2019s still plenty of room to grow"},"content":{"rendered":"

Egypt\u2019s local warehousing market is forecast to grow at 7% y-o-y over the <\/strong>next five years<\/strong> amid rising demand driven by new industrial zones and expanding e-commerce operations, according to a statement (pdf)<\/a> from Egyptian Global Logistics (EGL).<\/p>\n

The local market already leads the region in overall market value<\/strong>, but ranks third after Saudi Arabia and the UAE in terms of growth rates, EGL Marketing and Contracts Manager Mohamed El Kady told EnterpriseAM. While not leading the region in terms of growth, Egypt\u2019s booming e-commerce sector, solid industrial base, growing tech sector, and strategic geographic position continue to \u201cdrive robust warehousing and logistics growth,\u201d he added.<\/p>\n

(Tap or click the headline above to read this story with all of the links<\/strong> to our background as well as external sources.)<\/p>\n

Egypt currently has around 1.8k large warehouses and an additional 25k medium and<\/strong> small facilities scattered nationwide<\/strong>, according to estimates from EGL.<\/p>\n

Many of the new warehousing facilities are smarter and more efficient than before.<\/strong> Across key warehousing zones \u2014 namely Cairo, Giza, Alexandria, Ain Sokhna, and around the Suez Canal \u2014 modern facilities are becoming increasingly technology-driven. This includes the integration of automation, robotics, AI-powered warehouse management systems, and IoT-enabled sensors, which \u201care transforming efficiency, visibility, and cost control,\u201d El Kady said.<\/p>\n

Logistic park builders are also responding to demand for more eco-friendly and <\/strong>sustainable warehousing<\/strong>, with projects like Yanmu East Logistics Park \u2014 a JV between Hassan Allam Utilities and Kuwait\u2019s Agility Logistics Park \u2014 securing EDGE Advanced certification for its warehouses. Three of the park\u2019s warehouses have achieved the certification with savings of 49% in energy, 53% in water, and 59% in carbon emissions, giving warehouse occupants cheaper running costs and boasting rights to a greener supply chain, which can be an important leverage in financing and other negotiations.<\/p>\n

The logistics sector is also expanding into new areas outside of traditional hubs. <\/strong>EGL identified Tarboul Industrial City<\/a> in the Eastern Desert south of Cairo as an agricultural logistics and trade hub for Upper Egypt that benefits from its proximity to Cairo and the Suez Canal. The company also views Al Dabba Industrial City on the North Coast as a promising zone that will serve as a logistics anchor for the new under-construction cities like Ras El Hekma in the area \u2014 drawing on the UAE\u2019s \u201cJebel Ali-style model,\u201d EGL said.<\/p>\n

Like other warehousing companies, EGL is expanding \u201caggressively<\/strong>,\u201d with investments in some 350k sqm of warehousing capacity across Egypt\u2019s logistics hubs in Alexandra, Dekheila, Sokhna, Abu Rawash, and Safaga.<\/p>\n

\n

LOOKING AHEAD-<\/p>\n

Regional demand could be the next growth driver for our warehouse market amid rising <\/strong>costs and shortages elsewhere.<\/strong> For example, UAE warehouse rents are projected to rise<\/a> between 5-10% this year amid heightened demand paired with shortages of vacant warehouses and industrial land. With its strategic location, cheaper labor and facilities, and an abundance of land resources, Egypt is well-positioned to attract UAE-based players with global operations seeking more affordable and available options.<\/p>\n

But to bring companies\u2019 warehousing operations over to Egypt, the infrastructure needs to <\/strong>be put in place. <\/strong>While Egypt imposes \u201cno legislative barriers to foreign logistics operators in warehousing,\u201d infrastructure availability is still a \u201cprimary challenge, [which] the government has prioritized to resolve,\u201d El Kady told us. \u201cDated road, port, and transportation infrastructure\u201d was also highlighted as one of three major obstacles for advancing the promising warehouses sector in Egypt, according to Agility<\/a>. <\/p>\n

Egypt also needs to focus more on integrating warehouses with advanced technology <\/strong>\u2014 known in the business as Grade A warehouses \u2014 Agility says. The report stresses that this would play an essential role in propelling the expansion of our warehouse sector and competitiveness in the region. <\/p>\n

To this end, the government has committed some EGP 14 bn to develop seven <\/strong>state-of-the-art storage complexes<\/strong> \u2014 spanning around 1.3 mn sqm \u2014 dedicated to storing strategic commodities, according to EGL.<\/p>\n

\u201cComplex regulations and customs procedures\u201d are also holding back the sector<\/strong>, according to Agility. To address this, the Finance Ministry finalized new amendments<\/a> in June related to customs facilitation measures, seeking to reduce customs clearance time to two days from eight in the initial phase, which could take 9-12 months. Eventually, clearance could happen within hours.<\/p>\n","protected":false},"excerpt":{"rendered":"

Egypt has some 1.8k large warehouses in operation at present, with an additional 25k medium and small facilities scattered across the nation<\/p>\n","protected":false},"author":1,"featured_media":88540,"comment_status":"","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[459],"tags":[49,19,696,207],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-88539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spotlight","tag-egypt","tag-hassan-allam-utilities","tag-spotlight","tag-storage-warehouses","wpautop","entry"],"acf":{"mongo_id":"b1305a68-0e78-4b4c-9be9-dc63b17593f2","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/8\/1621.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt\u2019s 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