Egypt eases rules to revive stalled industrial projects
The decision, issued by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, aims to empower serious investors and revive stalled industrial ventures.
The initiative, implemented by the General Authority for Industrial Development, responds to appeals from factory owners and entrepreneurs whose projects were disrupted by regional tensions and economic pressures.
It provides tailored extensions based on each project’s status, including a six-month grace period for projects that have completed more than 50 percent of construction under a valid building permit, with full exemption from late penalties.
Projects with valid permits but less than 50 percent construction progress will receive a twelve-month extension, including penalty exemptions for the first six months.
Projects that have not yet obtained building permits but still hold allocated land may receive up to 18 months of extension with partial penalty exemptions.
The package also allows reinstatement of withdrawn land allocations if the land remains vacant and the original investor pays applicable fees at current rates.
Minister El-Wazir said the measures aim to stimulate industrial investment, make better use of industrial land, and accelerate the transition of delayed projects to full operation.
He added that the reforms balance easier procedures for committed investors with the need to safeguard public resources.
The decision also sets stricter controls to ensure project credibility. Investors must submit updated legal and financial documents within 40 days of applying.
Failure to demonstrate seriousness during the grace period will result in land withdrawal and possible legal action.
Additional provisions include a ban on land transfers or leases within industrial zones unless the project has operated for at least three years and paid the full land price and restrictions on accepting lease contracts as proof of land possession, with exceptions for approved financial leasing and state-issued contracts.