(KPIs)

Egypt’s industry sector benefits from a broad range of competitive advantages that support its growth and strengthen its appeal to investors, including:

• The implementation of a comprehensive and ambitious economic reform program to achieve development.
• A sizable domestic market supported by a broad consumer base and geographically dispersed population, which creates a strong demand for industrial products and offers investors significant opportunities for expansion and growth.
• A supportive legislative and investment environment, providing an investment-friendly legal and regulatory framework, along with competitive business procedures and costs.
• Tax and non-tax investment incentives stipulated in Investment Law No. 72 of 2017.
• Adopting a range of initiatives to strengthen national industry, complemented by innovative measures and policies that help mitigate the impact of global economic challenges while sustaining production and export rates across international markets.
• A robust infrastructure and integrated road and transportation network, supported by a historic and unprecedented accomplishments in infrastructure projects, particularly in roads and transport, facilitating efficient export operations through Egypt’s various ports.
• The industry sector is dynamic and responsive to technological advances in production, with productivity levels surpassing those of other economic sectors.
• The availability of many advantages and capabilities in infrastructure, as Egypt has achieved historic and unprecedented accomplishments in infrastructure projects, particularly in transportation and roads, which contribute to facilitating exports abroad through various Egyptian ports.
• A dynamic and evolving sector capable of adapting to technological advancements and embracing modern production methods, enhancing productivity and competitiveness while driving the transition toward more advanced, high-value-added industries.

The Egyptian government has adopted a new strategy to support, develop and advance the industry sector. This strategy includes:

• Enhancing the performance of existing industrial complexes and aligning them with import-substitution industries, while prioritizing strategic sectors where Egypt has a strong manufacturing base, significant growth potential, and competitive advantages in regional and global markets.
• Launching initiatives aimed at integrating the informal economy into the formal economy.
• Shifting towards sustainable green manufacturing by enacting laws and regulations, offering technical support services, and launching the National Strategy for Localizing the Automotive Industry, particularly electric vehicles.
• Launching the National Program for Deepening Local Manufacturing to strengthen the competitiveness of Egyptian industry, promote import substitution through locally produced goods, and develop a domestic base of industrial suppliers.

• The industry sector benefits from the guarantees and general investment incentives provided under Investment Law No. 72 of 2017. In addition to the special incentives, pursuant to Article 11 of the Investment Law, eligible industrial projects may benefit from a deduction from taxable net profits equivalent to 50% of the investment cost for projects located in the areas identified as most in need of development (Sector A), or 30% for projects located in other areas of the country (Sector B). The availability and application of these incentives are determined based on the geographic distribution of economic activities and the applicable classification of the relevant industrial project. These incentives reflect the State’s policy of promoting investment in targeted economic sectors and encouraging development and investment in designated geographic areas across Egypt.
• Investment projects undertaking eligible industrial activities, in accordance with Article 11 bis of Investment Law No. 72 of 2017, shall be granted a cash investment incentive ranging from 35% to 55% of the tax paid, as reported in the relevant tax return, in respect of the income generated from the project.

Additional incentives granted to investment projects in the industry sector by a Cabinet decree, as follows:

• Permission to establish special customs outlets for the investment project's exports or imports, in agreement with the Minister of Finance.
• The state shall bear the cost, or a portion thereof, of installing utilities to the property allocated for the investment project, after the project becomes operational.
• The state shall bear a portion of the cost of technical training for employees.
• Land shall be allocated free of charge for certain strategic activities, in accordance with the regulations stipulated by law.
• Exemption from the project’s usufruct fees for a maximum period of 10 years from the start of operation, based on a proposal from the relevant minister.
• Exemption of projects from contributing up to 50% of the costs of establishing infrastructure, services, and public utilities, in accordance with the regulations issued by the Supreme Investment Council.
• Granting the Golden License "single approval” to strategic projects in the industrial sector