Government introduces new deadlines, incentives for delayed industrial projects

Daily News Egypt
4 Min Read

The Ministry of Industry has announced a new package of extensions and facilitations for delayed industrial projects that have exceeded their prescribed implementation timelines. The decision reflects the Ministry’s commitment to supporting manufacturers, enabling stalled yet serious projects to resume operations, and accelerating industrial production.

According to the announcement, the measures, applied through the Industrial Development Authority (IDA), will remain in effect until 30 April 2026.

Under the new incentives, projects holding a valid building permit and having completed more than 50% of approved construction will receive a six-month extension, along with a full exemption from all delay penalties. The extension is intended to help investors complete construction, install machinery and equipment, and obtain both the operating license and industrial registry.

Projects that have a building permit but have either not begun construction or have completed up to 50% will be granted a 12-month extension. These projects will be exempt from penalties only for the first six months; standard fees and delay penalties will apply for the remaining period.

Projects that have not yet obtained a building permit, but still hold possession of allocated land and have not conducted any construction, may receive up to 18 months to secure a building permit, operating license, and industrial registry. They will also be exempt from penalties for the first six months only, with all remaining delay fees applied afterward.

For projects whose land allocations were withdrawn due to missed deadlines, but where the land remains vacant and has not been reassigned, the original investor may request reallocation at the current price set by Prime Ministerial Decree No. 50/2025, provided they pay the required penalties. If the investor does not request reinstatement, the land will remain subject to withdrawal procedures.

The Ministry emphasized that these measures aim to support industrial investment, ensure the optimal use of industrial land, one of the sector’s most valuable resources, and remove obstacles facing committed investors. The decision also reflects the Ministry’s recognition of the challenges many factories have faced in recent years.

Standard fees and delay penalties will continue to be calculated in accordance with existing IDA regulations. To benefit from the incentives, investors must submit a formal application along with updated legal, financial, executive, and property verification documents issued within the past 40 days. The Authority will expedite application reviews, and the grace period will begin once approval is granted. Failure to demonstrate sufficient progress within the allocated timelines will result in land withdrawal and legal action.

The ministerial decision also introduces safeguards to ensure project seriousness and protect industrial land. It prohibits any land transfer or leasing within industrial zones until an investor has demonstrated full commitment, evidenced by three years of actual operation and full payment of the land price. Exceptions apply only to certified financial leasing contracts and leases issued directly by land-owning authorities.

Additionally, change-of-activity requests will not be accepted until a project has completed at least 12 months of operation, unless the proposed activity falls within the same sub-category. Environmental approvals for adding new activities are similarly restricted until the investor proves seriousness in the primary activity and successfully passes the required technical inspection.

 

 

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