Deputy PM discusses mechanisms, regulations for organizing industrial development
Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, convened a comprehensive meeting with Mahmoud Esmat, Minister of Electricity and Renewable Energy, Sherif El-Sherbiny, Minister of Housing, Utilities, and Urban Communities, and a group of industrial developers operating in industrial zones across New October, Sadat, and New Alamein. Participants included major developers such as Polaris Parks, ElSewedy Industrial Development, IDG, CBC, Bliss Mappers, El-Gioshy, the Small Industries Association, and the Al Tajamouat Investment Company. The meeting focused on discussing mechanisms and regulations for organizing the work of industrial developers in alignment with President Abdel Fattah Al-Sisi’s directives to bolster the industrial sector and position Egypt as a leading regional industrial hub.
Al-Wazir began by underscoring the success of the industrial developer model in the Egyptian market, highlighting it as a key example of public-private partnerships. This model aligns with national objectives of deepening local manufacturing capabilities and increasing high-value exports. He emphasized that industrial developers play a pivotal role by offering a comprehensive range of services to industrial investors, including planning and equipping industrial zones, managing operations, promoting zones locally and internationally, and facilitating government permits and licensing processes. Moving forward, the government plans to expand the adoption of this model to establish new factories and broaden industrial zones in line with Egypt’s industrial development strategy.
During the meeting, Al-Wazir directed the creation of a committee comprising representatives from the Ministries of Industry, Electricity and Renewable Energy, Housing, Utilities, and Urban Communities, alongside industrial developers. The committee will examine the design and pricing of electricity facilities for the New October industrial zone, evaluate existing power stations and electrical capacities, and establish a reference price until contracts with executing companies are finalized. These contracts, issued by the Industrial Development Authority (IDA), will encompass water, sanitation, and electricity services, with agreed-upon designs and pricing to be standardized across new industrial zones, including New October, Sadat, 10th of Ramadan, New Alamein, and New Borg El-Arab.
Al-Wazir stressed the government’s commitment to expediting infrastructure projects for industrial zones, following President Al-Sisi’s directive to complete all ongoing infrastructure works by June 30. He also revealed that contracts for developing industrial zones under the industrial developer model have undergone a thorough review to safeguard the rights of the state, developers, and investors. Furthermore, the IDA will centralize all industrial land allocations across Egypt to streamline offerings for industrial developers, final investors, and general land allocations. This will be integrated into the “Golden Licence” framework, wherein the IDA will handle all procedural and approval requirements on behalf of industrial investors.
Responding to requests from industrial developers to increase building coverage ratios on land allocated under the industrial developer system, Al-Wazir instructed the IDA to compare existing coverage ratios with international standards through a legal review process.
Minister Mahmoud Esmat highlighted the need to assess both current and future electricity requirements for industrial developers in the New October zone. He stressed the importance of evaluating existing power stations to determine the number of transformer stations required to meet developer energy demands. Esmat assured that a comprehensive electricity distribution plan would reduce costs and accelerate the delivery of electricity to all industrial plots.
Minister Sherif El-Sherbiny noted that his ministry has commenced major infrastructure works in industrial zones within New October and New Alamein, particularly the extension of water and sewage networks to these sites. He affirmed the ministry’s readiness to provide technical support to ensure infrastructure quality meets the highest standards.
Concluding the meeting, industrial developers lauded the government’s proactive approach to enhancing the industrial developer model and maintaining open communication channels. They acknowledged the significant role of government initiatives in resolving challenges, fostering industrial development, and involving developers in key decision-making processes. Developers also emphasized the importance of establishing sustainable, globally compliant industrial zones to attract local and international investors, with the government’s infrastructure initiatives serving as a cornerstone for accelerating industrial zone development.
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