Egypt eases industrial land transfer rules, grants relief for stalled projects

Egypt has eased restrictions on transferring and leasing industrial land while granting additional grace periods for delayed projects, in a move aimed at accelerating manufacturing investment, resolving challenges facing industrial projects, and bringing stalled factories into production.

The changes were introduced under Industry Ministry Decision No. 171 of 2026, which amends provisions of Decision No. 107 of 2026 governing industrial land allocation and project implementation, according to a ministry statement issued on Wednesday.

The amendments remove the previous requirement that investors operate projects for three years before transferring ownership of industrial land and one year before leasing it. Investors may now transfer or lease land after demonstrating the seriousness of their projects, commencing operations, obtaining an operating licence and industrial registration, and settling the full land price and any outstanding financial obligations.

The decision also grants additional time to delayed projects based on construction progress. Projects that have completed at least 75 per cent of construction will receive up to six months to complete the required procedures, while those with completion rates between 50 per cent and 75 per cent will be granted up to 12 months. Projects that have completed less than 50 per cent of construction will receive up to 18 months.

Projects that previously received extensions but failed to demonstrate sufficient progress will be given a final three-month grace period before their land allocations are cancelled and the plots withdrawn.

Industry Minister Khaled Hashem said the new measures are intended to support serious investors, remove obstacles facing industrial projects, and accelerate production while ensuring more efficient use of industrial land.

The ministry said the facilitations will not apply to projects whose land allocations have already been formally cancelled or withdrawn.

The amendments also give investors greater flexibility to change industrial activities, subject to approval by the Industrial Development Authority (IDA). Any proposed change must be supported by a feasibility study, be compatible with the land’s nature and location, and meet the applicable financial requirements.

Egypt has introduced a series of measures this year to accelerate industrial investment, increase domestic manufacturing and improve the utilisation of industrial land as part of its broader industrial development strategy.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser