Egypt’s PM expands industrial investment incentives
Egypt’s government has broadened its investment incentives for industrial activities, linking benefits to specific geographic zones to attract new investments and promote local manufacturing, the Ministry of Investment and Foreign Trade announced on Wednesday.
Under Decree No. 503 of 2026 issued by Prime Minister Moustafa Madbouly, companies in sector (A), covering underserved areas, Upper Egypt, the New Capital, and the economic zone, can deduct 50 per cent of investment costs from taxable profits. Firms in sector (B), covering the rest of the country, can claim a 30 per cent deduction, both capped at 80 per cent of paid-in capital over seven years.
The decision aims to support local manufacturing, deepen supply chains, and attract new investments in line with the country’s industrial priorities. Minister Mohamed Farid Saleh said the new decree strengthens the practical application of Article 11 of the Investment Law and expands special incentives to promote industrial localisation.
The decree consolidates existing industrial incentive programmes introduced since 2022 and adds new sectors, including traditional and electric vehicle manufacturing, engineering and metal industries, food processing, and chemical production. These additions aim to enhance industrial integration, improve supply chain efficiency, reduce import reliance, and increase the competitiveness of Egypt’s domestic industry.
Strategic sectors gain new incentives
The expanded incentives for sector (A) target a wide range of priority industries, including all types of vehicles and automobiles, electric motors, refrigerator evaporators and compressors, metal sheets for electrical and electronic appliances, pipes and tubing, fruit and vegetable concentrates or purees, and concentrated sulfuric acid.
For sector (B), the added activities include vehicles and automobiles, refrigerator evaporators, fruit and vegetable concentrates or purees, and concentrated sulfuric acid, highlighting the government’s emphasis on value-added industries and the development of local supply chains in strategic industrial sectors.
The minister said the expansion reflects the government’s strategy to promote balanced regional development, support strategic industries, and encourage foreign and domestic investment. Sector-specific incentives for vehicles, electric motors, refrigeration components, metal sheets, pipes, fruit and vegetable concentrates, and sulfuric acid production are included.
Farid added that the ministry is also reviewing additional industrial activities for localisation, reinforcing Egypt’s long-term plan to deepen domestic manufacturing, boost exports, and stimulate economic growth.
Attribution: Amwal Al Ghad English