The Egyptian government is laying the groundwork for significant economic development, approving a series of investment and infrastructure projects on Wednesday. These initiatives range from new industrial zones to expanded financing options for key sectors, signaling a push for sustainable growth and localized manufacturing.
New Zones and Funding Aim to Boost Egyptian Economy
A flurry of approvals from the Council of Ministers aims to attract investment and strengthen domestic industries.
- A new 13.13-acre investment zone is planned for New Alamein City.
- Amendments to a soft lending initiative will expand financial support to eight priority industrial sectors.
- Land allocations in Minya and the Red Sea will facilitate industrial and commercial development.
- A long-term agreement secures exhibition space for small and medium-sized enterprises.
The Council of Ministers, at its meeting on Wednesday, approved the establishment of a new investment zone spanning approximately 13.13 acres south of the coastal road in New Alamein City, Matrouh Governorate. The zone is earmarked for a mixed-use project encompassing commercial, administrative, hotel, sports, entertainment, and logistical facilities, with a license granted to a specialized construction and development company.
What types of industries will benefit from the new lending initiative? The Council also approved amendments to an initiative supporting priority industrial sectors with a 15% interest rate. These changes aim to maximize the initiative’s impact and align with national strategies for sustainable economic development and the localization of industries, as directed by presidential mandates. The expanded program now includes the pharmaceutical, engineering, food, textile, ready-made clothing, chemical, mining, building materials, refractories, leather, and metal industries.
The amendments also adjust the maximum financing available per customer. Within the framework of the initiative, individual clients can now access up to 100 million Egyptian pounds, with a maximum of 150 million pounds for a client and its related parties. Credit availability will be determined based on business size and banking regulations.
In addition to the investment zone and lending program, the Council approved a draft decision by the President of the Republic to allocate 315.37 acres of state-owned land in the Al-Mutahra District, Minya Governorate, to the General Authority for Industrial Development for industrial activities. Simultaneously, a previous Cabinet Resolution No. 9 of 2018 establishing a public free zone in Al-Mutahara, east of the Nile, was cancelled.
The Red Sea Governorate also received approval to allocate 1,000 square meters of land in the Herafeyeen Taksim area of Hurghada to a company specializing in car sales and maintenance. This land will be used to establish a car exhibition, service center, and a training and rehabilitation center for technical education students.
Furthermore, the Council agreed to finalize a 25-year usufruct contract, starting September 1, 2025, and ending August 31, 2050, between the Egyptian General Exhibitions Authority and the Medium, Small and Micro Enterprise Development Agency for the agency’s permanent exhibition building in Nasr City.
The Council of Ministers also reviewed the annual report and final accounts of the National Social Insurance Authority for the fiscal year ending June 30, 2025, along with a report on the Authority’s investments and performance indicators from July 1, 2024, to June 30, 2025.
Finally, the Council approved a draft presidential decision reallocating state-owned land from various governorates to Egypt’s Future Agency for Sustainable Development, supporting the implementation of numerous development projects and activities.
