Egypt has launched its first offering of industrial land under a new lease-to-own system, comprising 540 plots with a combined area exceeding 5.7 million sqm across 20 industrial zones in 15 governorates nationwide.
The offering, introduced by the Industrial Development Authority (IDA), aims to ease the initial financial burden on investors by allowing them to lease industrial land before eventually acquiring ownership, enabling them to direct more capital towards factory construction, machinery, equipment and production lines.
The plots vary in size to accommodate projects ranging from small and medium-sized enterprises to large-scale industrial investments.
The offered opportunities target priority sectors, including pharmaceuticals and biotechnology, engineering industries and automotive components, electronics and precision equipment, chemicals, building materials, food industries, and textiles and ready-made garments.
Under the programme, investors are required to complete their projects within 24 months of receiving the land and reach operational status according to a phased implementation schedule.
The first six months are allocated for obtaining the building permit, followed by 12 months to complete 100% of the industrial facility’s foundations.
By the 18-month mark, investors must complete 100% of the construction works covered by the building permit. Within 24 months, the project must be completed and the investor must obtain the operating licence and industrial registration.
Failure to meet any stage of the implementation schedule will result in the cancellation of the allocation and withdrawal of the land, according to the IDA, as part of measures aimed at ensuring investment seriousness and optimising the use of industrial land.
Applications and tender documents for the current offering will be submitted entirely online through the Egypt Industrial Digital Platform from August 15 to 31.
Investors can access the lease-to-own services through the platform and complete the application process by creating or logging into an account, purchasing and reviewing the terms and conditions booklet, entering the company’s basic information, selecting investment opportunities through the platform’s map, submitting the project’s economic and technical feasibility study, uploading the required documents, and paying the booking deposit electronically.
Applications will be reviewed and evaluated, with results expected to be announced within 15 days of the application deadline in an effort to accelerate the allocation process.
The lease-to-own system, newly introduced by the IDA, allows investors to lease industrial land for up to 21 years. The annual lease payment is set at 5% of the land’s price per square metre, subject to an annual 10% increase, while the land valuation will be reviewed every seven years in accordance with applicable regulations.
Investors will have the right to request ownership of the land once they demonstrate seriousness by commencing actual operations and obtaining the required operating licence and industrial registration.
Upon exercising the purchase option, all lease payments previously made will be deducted from the total land price based on the approved land valuation at the time of submitting the ownership request.
The investor will then be required to pay 25% of the remaining value, with the balance payable in three annual instalments subject to the applicable interest rates.
The new mechanism is intended to provide investors with greater financial flexibility during the early stages of establishing industrial projects while encouraging faster development and actual production on allocated industrial land.
