The Ministry of Industry and Foreign Trade has prepared a draft law pertaining to the development of the vehicles industries, interim minister in the caretaker government Mounir Fakhry Abdel Nour announced Wednesday.
Abdel Nour added that the final draft was sent to the Ministry of Finance for review before it is received by the cabinet.
The draft law aims to maintain investments in the vehicles manufacturing sector, promote new local and foreign investments, increase the percentage of local components, and increase exports.
Abdel Nour said the law project has been detailed in coordination with all the significant entities in the sector, especially the Industries Union. The draft law targets the achievement of several goals, including preserving its feeding industries and maintaining its employment rate.
The law also preserves the state’s resources, such as custom taxes on cars, especially those with high engine capacities.
In addition, the law encourages new national and foreign investments to be pumped into the sector through the new incentives’ programme offered by the law. This will create new job opportunities in the Egyptian market.
Abdel Nour added that the draft law also targets increasing the local manufacturing percentage in the industry, as well as increasing Egyptian exports, whether cars fully assembled in Egypt, or their feeding components. This is through linking the offered incentives within the law with growth in the local component industry.
The law also aims to increase the factories’ production capacity, in order to benefit from the large production surplus, and maintain the competitiveness of the automotive market for consumers in Egypt.