The government has launched several initiatives this year to boost local manufacturing and create a more attractive investment climate. Part of efforts to achieve targets set by the National Industry Strategy (2024-2030), they aim to increase the contribution of the industrial sector to GDP from 14 per cent to 20 per cent by 2030.
One of the key steps taken has been to improve the availability of land for industry, which had previously been a significant hurdle for new investments.
In March 2025, 13.3 million square metres of serviced industrial land was made available via the Digital Egypt Industrial Platform, totalling around 2,000 plots across 22 governorates of various sizes and catering for different activities.
The move aims to encourage the launch of industrial projects and enhance local production.
Samir Aref, chair of the 10 Ramadan Investors Association, called for industrial land to be offered at cost price without profits being sought from it. He said the real economic benefit of the land lies in the production facilities built upon it through job creation and a reduced dependence on imports.
In mid-April 2025, the first phase of the Priority Industrial Sectors Financing Initiative was launched to help companies purchase machinery and production lines, according to a statement by the Ministry of Industry. The initiative aims to provide LE30 billion in financing at a reduced interest rate of 15 per cent for a five-year period.
Aref urged the speedy implementation of the Initiative, especially as interest rates remain high, limiting the capacity of the industrial sector to expand. He also stressed the importance of entities involved in improving the investment climate coordinating among themselves, advocating for a unified approach instead of isolated decision-making that can hinder implementation and weaken outcomes.
Wael Al-Khouli, deputy chair of the 6 October Investors Association, told Al-Ahram Weekly that industrial land in the 6 October area is being offered by private developers and at higher prices compared to plots offered by the government.
He called for more land to be offered by the state and added that his association is preparing a comprehensive proposal to be submitted to the Industrial Development Authority to obtain land in New October City to be serviced and allocated to the association’s members.
According to Al-Khouli, the engineering industries sector holds the largest share among the 13 investment sectors in the 6 October industrial zone due to the diversity of its activities.
He also pointed to the presence of foreign investments in the area, as well as partnerships with local investors. Among these are Saudi, Turkish, and Chinese factories operating in fields such as steel structures and steam bikes.
Al-Khouli stressed the importance of reducing the financial burden on investors to enable them to produce at lower and more competitive prices for both the local and international markets.
Producers in the area had been surprised by a recent decision requiring them to pay a fee of LE10 per square metre to the city authorities for maintaining older industrial zones, in addition to a sanitation fee of around LE 1,000 added to their water bills, he said.
The fee is based on electricity consumption and has been applied retroactively from May 2024.
The producers had previously requested that a portion of their annual payments to the Industrial Development Authority be allocated for the maintenance of these zones instead of the imposition of additional charges, Al-Khouli told the Weekly.
He called for temporary tax exemptions for new companies to ease their financial burdens and support their operations. He also highlighted the importance of legislative stability, which is a critical factor for investors when preparing feasibility studies.
Samir Aref of the 10 Ramadan Investors Association told the Weekly that Egypt is a promising investment environment capable of attracting foreign capital. However, he noted the need for practical steps to be taken to build trust and send strong reassurances to international investors.
Aref said that unresolved disputes continue to raise concerns for potential investors who seek reliable guarantees for profit repatriation and the ability to exit the market when needed. Resolving these issues would significantly improve Egypt’s international investment reputation, he said.
He noted that global economic shifts present a valuable opportunity for Egypt to attract investments seeking stability and lower costs, particularly owing to the increasing tariffs imposed by countries like the US and China.
Egypt enjoys several competitive advantages, including low labour costs compared to other nations, multiple export ports, and a large consumer market of over 110 million people, making it an ideal destination for both manufacturing and sales, Aref said.
* A version of this article appears in print in the 15 May, 2025 edition of Al-Ahram Weekly
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