Car assembly factory in Egypt. Shutterstock.
The agreement was signed by the General Authority for Investment and Free Zones (GAFI), the Ministry of Finance’s Environmentally Friendly Automotive Industry Fund (EFAIF), and the Ministry of Trade’s Car Manufacturing Unit.
The Egyptian signatories will oversee production, coordinate with authorities, and provide incentives to Global Auto.
Global Auto Group is a partnership between Kuwait's Ali Alghanim & Sons Automotive, Saudi Arabia's Mohamed Yousuf Naghi Motors, Al Organi Group and Al Safi Group of Egypt.
The company is the official importer of BMW, BMW i, and MINI automobiles in Egypt.
Prime Minister Mostafa Madbouly attended the signing ceremony, emphasizing that the agreement is part of the Egyptian Automotive Industry Development Programme (AIDP), a comprehensive policy designed to expand the automobile industry and its associated sectors.
Environmentally friendly cars have become a focal point of Egypt's automotive industry development.
Egypt unveiled its national strategy for localizing the automotive industry in 2022, with the aim of positioning itself as a key player in Africa's emerging vehicle markets.
Boosting domestic manufacturing of vehicles may also help stabilize Egypt’s domestic automotive market. Since March 2022, the market has been grappling with unprecedented stagnation largely due to a decline in imports and a shortage of foreign currency.
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