Projects that have exceeded their initial scheduled timeline will also benefit from the package.
According to a ministry statement on Thursday, the recent incentives aim to regulate procedures and support investments.
The new incentives run from 1 May to 31 December 2026 after grace periods expired in April.
According to the ministry, the new package of incentives introduces several new controls supporting investors and the state.
They also allow for more flexibility in industrial lands leasing and activity changes to deepen local manufacturing.
Moreover, the package targets exploiting already completed productive assets, protecting manufacturer’s interests, and supporting struggling factories.
The incentives align with Egypt’s plans to expand its industrial sector under its National Industrial Strategy and economic narrative.
Eight to 18 months grace periods
A grace period of six to 18 months will be granted to projects depending on the rate of implementation, giving more space for completing industrial projects and obtaining licenses.
The period also applies to those projects for which land withdrawal orders were issued but not implemented.
According to the new incentives, a project with a building permit that has been granted a six-month grace period will be fully exempt from late payment penalties for the duration of the package.
It should, however, have complied with 75 percent or more of the permit’s requirements.
The new incentives would allow these projects to finish procuring machinery and equipment, obtain an operating license, and complete industrial registration.
Similarly, the new package includes granting a grace period of up to 12 months to projects that have met 50 to 75 percent of their building permit’s specifications.
Exemption from late payment penalties applies only for the first six months.
Projects with zero progress on construction or with a below 50 percent completion rate will be granted a grace period of up to 18 months.
They will be fully exempted from late payment penalties for the first six months.
Conditions for withdrawing lands
According to the recent incentives, land withdrawn from projects for not obtaining a building permit, resulting in a vacant area, can be re-offered to the original beneficiary at the current price, provided they have not been re-offered to another investor.
Moreover, a final grace period of up to three months can be granted to projects that received extensions under past decisions – but failed to implement requirements – before the land was withdrawn.
The 90-day grace period is also granted to investors wanting to formalize the status of sale or lease procedures, completed before December 2024 (when the government issued a decree prohibiting any disposal of industrial lands).
The recent package further stipulates that applications to changing industrial activity may only be accepted after a project is proven to have been genuinely operated for a full year.
However, projects manufacturing products under the same sub-activity or other specified products will be exempted from this condition.
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