The Industrial Development Authority (IDA) in Egypt has announced the allocation of over 300,000 square meters of serviced industrial land to investors across eight industrial zones under a rent-to-own system. This move is part of efforts to encourage private-sector investment and reduce upfront financial burdens on investors. The allocated plots are located in New Borg El Arab, Wadi El Natrun, Katameya, 10th of Ramadan, New 6th of October, Sadat, New Tiba, and New Akhmim.
Nahid Youssef, Chairperson of the IDA, stated that the offering was launched following directives from Industry Minister Khaled Hashem to introduce alternative investment mechanisms. Applications were submitted through the Egypt Industrial Hub digital platform from August 15 to 31. A fully automated electronic system was used to review applications after the deadline, ensuring transparency and equal opportunities among applicants.
The rent-to-own system allows investors to launch projects with lower initial costs and direct available liquidity towards construction, machinery, and equipment. Investors have the option to move to ownership once they demonstrate seriousness and begin actual operations, with all rent payments deducted from the total purchase price of the land. This system reflects investors' interest in reducing upfront costs and improving project viability.
The IDA linked the offered plots to targeted industrial activities to support local manufacturing, reduce import gaps, and improve economic viability and sustainability of projects. Targeted sectors include engineering industries, pharmaceuticals and biotechnology, food industries, chemicals, building materials, automotive and components, electronics, textiles, and ready-made garments. This strategic approach aims to boost specific industries and enhance the overall economic impact of the investments.
Investors can check their application status and allocation results through the Egypt Industrial Hub platform. Successful applicants are being notified by SMS and email to begin completing handover procedures. To proceed, investors must comply with a 24-month implementation schedule from the date of receiving the land, which includes obtaining a building permit and completing construction works within specific timeframes.
The 24-month implementation schedule requires investors to obtain a building permit within six months, complete 100% of the industrial facility's foundations within 12 months, complete construction works covered by the building permit within 18 months, and complete the project and obtain an operating license and industrial registration within 24 months. Failure to meet any stage of the implementation schedule may result in the cancellation of allocations and withdrawal of the land.
The IDA's allocation of industrial land under the rent-to-own scheme demonstrates the Egyptian government's efforts to attract private-sector investment and promote industrial development. With a strong demand for the offering, the IDA aims to support the growth of targeted industries and enhance the country's economic landscape. Investors who have been allocated land are expected to play a significant role in driving economic growth and job creation in the industrial sector.
Key points
- The Industrial Development Authority allocated over 300,000 sqm of industrial land under a rent-to-own system across eight industrial zones in Egypt.
- The rent-to-own system allows investors to launch projects with lower initial costs and direct available liquidity towards construction, machinery, and equipment.
- Investors must comply with a 24-month implementation schedule, which includes obtaining a building permit and completing construction works within specific timeframes.
