Egypt's Senate approves a draft bill allowing informal industrial projects to operate legally

This period, however, could be extended for an additional two years by the Trade and Industry Minister upon the recommendation of IDA and after these projects observe pre-conditions stipulated by the Environment Ministry and Civil Defence Authorities.

"The bill comes to serve the state's policy aimed at supporting the industrial sector either in the form of eliminating obstacles facing industrial projects or helping informal industrial businesses to operate in a legal way. Either way this will have a positive impact on the national economy," said a 32-page report prepared by the Senate's Industrial Committee.

The report indicated that "in 2017 law no.15 was passed to grant the IDA the power to allow informal industrial projects to operate for a temporary two-year period starting from the date of the enactment of the law." 

"The law was enacted on 4 May 2017 and expired on 3 May 2019. As a result, it was necessary to draft the new bill to grant IDA a new extended power to legalise informal industrial projects for another period of time until they adjust their production conditions," said the report.

Head of the Senate's Industrial Committee Mohamed Halawa said that "the bill comes while Egypt is struggling hard to double its industrial production to meet local needs, boost exports, cut down imports, and generate much-needed foreign exchange," said Halawa.

Senator Hossam El-Khouly, the spokesman of the majority party of Mostaqbal Watan, said that the bill comes at the right time as Egypt is struggling hard to contain the negative fallout of the one-year global economic crisis triggered by the war in Ukraine.