الرئيسية / اقتصاد / Private free zones attract $216.5 Mln for clothing, PVC flooring factories

Private free zones attract $216.5 Mln for clothing, PVC flooring factories

فريق رجال الأعمال اقتصاد 21 July 2025 12:03 PM
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Private free zones attract $216.5 Mln for clothing, PVC flooring factories

Engineer Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, chaired the 27th meeting of the Ministerial Group for Industrial Development, where attendees approved three new industrial projects and discussed strategies for a green economy transition.

The meeting saw the participation of several key ministers, including Lieutenant General Mohamed Salah El-Din, Minister of State for Military Production, Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy, Engineer Sherif El-Sherbiny, Minister of Housing, Utilities, and Urban Communities, and Engineer Karim Badawy, Minister of Petroleum and Mineral Resources.

Via video conference, Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, Engineer Mohamed Shimi, Minister of Public Business Sector; Engineer Hassan El-Khatib, Minister of Investment and Foreign Trade, Major General Mokhtar Abdel Latif, Head of the Arab Organization for Industrialization, and Dr. Nahed Youssef, Head of the General Authority for Industrial Development, also attended. Representatives from various ministries, agencies, and leaders from the Ministries of Industry and Transport were also present.

Al-Wazir emphasized the Ministerial Group's ongoing commitment to reviewing all applications for industrial projects under the special free zone system or those seeking a "Golden License" (single approval). He highlighted that all relevant ministers and bodies involved in these approvals are members of the group. He stressed the need to activate a "one-stop shop" at the Industrial Development Authority, as it is the sole entity authorized to issue industrial licenses, aiming to simplify procedures and resolve complexities among various authorities overseeing industrial lands or issuing permits.

The meeting reviewed three proposals from industrial companies for projects under the special free zone system. These included:

A PVC panel and flooring manufacturing project in the New Alamein Industrial Zone, with investments of $108 million, creating 2,150 jobs, 

A ready-made garment manufacturing project in the Medium Industries Zone of New Beni Suef City, with investments of $30 million, providing 9,000 job opportunities, 

A textile manufacturing project in the 10th of Ramadan City, Sharqia Governorate, with investments of $78.5 million, creating 4,000 jobs.

The committee approved all three projects after they met the required conditions for special free zones. El-Wazir noted that the PVC project introduces a new and in-demand industry to the Egyptian market, located in the promising New Alamein City. He added that the ready-made garment and textile projects are targeted by the state for increased investment due to their labor-intensive nature, low energy consumption, and Egypt's strong competitive advantages, extensive expertise, and skilled workforce in these sectors.

Al-Wazir further explained that the government aims to increase industrial investments in Beni Suef, Minya, and Fayoum governorates, as they possess abundant skilled labor. The Ministry of Industry has launched two integrated textile cities in Wadi El-Saririya (Minya) and the industrial zone north of Fayoum to accommodate the high number of workers in these governorates and meet both local and export demands for these industries.

In line with Egypt's transition to a green economy and increased reliance on clean transportation, the meeting discussed key aspects of the electric vehicle (EV) sector. This included ongoing efforts to develop new incentives, such as providing EV charging stations across various governorates to serve citizens and investors and promote EV adoption. The discussion also covered studying the most energy-intensive EV categories to develop a fair and well-researched pricing mechanism for charging.

The group approved adopting the European standard as the primary criterion for EVs permitted for import or local production. It emphasized prohibiting the entry of vehicles equipped with unapproved Chinese chargers due to potential safety and operational risks. The importance of strengthening the Egyptian Organization for Standardization and Quality laboratories was highlighted to ensure accurate inspection of vehicles and chargers and compliance with technical specifications. El-Wazir also directed coordination between the Ministries of Finance and Investment and their affiliated bodies to establish clear regulations for EV imports, including a new customs policy that ensures fairness for all stakeholders and protects national industry from unregulated practices.

The meeting also reviewed mechanisms for improving facilities in industrial zones to optimize infrastructure utilization and achieve economic development goals. El-Wazir stressed the need to reorganize the technical and administrative system supporting infrastructure development in industrial zones to ensure continuous and efficient service delivery. He directed the formation of a joint technical committee comprising representatives from the Ministries of Industry, Planning, Finance, Housing, Local Development, and the Federation of Egyptian Industries. This committee will study the reorganization of the Industrial Zones Facilities Support Fund and the development of unserviced industrial areas, focusing on administrative, financial, and technical structures to maximize its role in industrial development and improve the efficiency of industrial zone facilities and lands.

Finally, the meeting discussed proposed policies to enhance the sustainability of natural gas supplies to the industrial sector, considering energy cost challenges and factory operational conditions. The importance of rescheduling accumulated factory debts to the Ministry of Petroleum and Mineral Resources was emphasized, with flexible mechanisms to allow companies to continue production while safeguarding state rights. Efforts by the Ministry of Petroleum to secure national grid gas supplies were also reviewed, including increased local extraction and the provision of regasification vessels, which have ensured factories' gas needs and the continuity of production.