7 key facts about Egypt’s new YADA Egypt free zone

The Egyptian government is pushing forward with a series of initiatives to drive economic growth, including the establishment of a new free zone, changes to external debt management, and the granting of special licenses to facilitate investment. Here’s a breakdown of the major points:

• Investment Size: Egypt’s cabinet has approved the YADA Egypt free zone in New Alamein City, committing an investment of €70 million.
• Sector Focus: The zone will focus primarily on the furniture industry, positioning New Alamein as a hub for high-quality furniture manufacturing.

• Job Creation: YADA Egypt is expected to create around 1,320 jobs, benefiting both skilled and semi-skilled workers.
• Worker Accommodation: To support the workforce, housing will be provided within New Alamein City, promoting the city’s growth as an industrial and residential center.

• Projected Output: Annual production from the YADA Egypt free zone is anticipated to reach 40 million pieces of furniture.
• Export-Driven Model: The free zone targets exporting 100 percent of its furniture output, contributing to Egypt’s goals for higher export revenue.
• Local Sourcing: Between 40 to 80 percent of production inputs are expected to be sourced domestically, fostering growth within Egypt’s supply chains.

• Committee Restructuring: In an effort to better organize external debt, the cabinet has restructured the External Debt Management Committee, which will now be chaired by Prime Minister Mostafa Madbouly.
• Debt Limit: The committee will set an annual borrowing limit based on financial sustainability, with deviations only allowed under extraordinary circumstances and with cabinet approval.

• Debt Decrease: Egypt’s external debt decreased by 5 percent to $152.88 billion in the last quarter of FY2023/2024.
• Debt-to-GDP Ratio: The government aims to reduce its external debt-to-GDP ratio from the current 89 percent to 88 percent by FY2024/2025, using strategic allocations, including IPO proceeds, to achieve this target.

• New License Issued: The Egyptian cabinet granted the Nutsland for Agricultural Investment company a "golden license" to expedite its development project.
• Project Scale: The EGP 1.4 billion project, based in the 10th of Ramadan City, spans 136,000 square meters and will focus on exporting about 80 percent of its production.
• Job Creation in Agriculture: This project is expected to create 4,000 jobs, boosting the agricultural sector and increasing Egypt’s export potential in agricultural products.

• Egypt’s latest initiatives underscore the government’s commitment to diversifying its economy through both industrial and agricultural investments. By attracting foreign investment and supporting export-driven industries, these efforts aim to reduce reliance on external debt while positioning Egypt as a competitive player in the global market.

These strategic moves highlight Egypt’s holistic approach to economic reform, emphasizing job creation, export growth, and sustainable debt management. The YADA Egypt free zone and other initiatives underscore Egypt’s aim to become a regional leader in both manufacturing and agricultural exports, while fostering a stable economic environment for long-term development.