The Industrial Development Authority (IDA) in Egypt is set to introduce a new mechanism to simplify procedures and accelerate the issuance of building permits for industrial facilities, effective November 1, 2026. This move is in coordination with the Egyptian Insurance Pool for Civil Liability against Construction Risks, also known as the Decennial Insurance Pool. The new mechanism aims to eliminate duplication in the review process and facilitate procedures for industrial investors.
Under the new mechanism, the Decennial Insurance Pool's branches will receive and review structural design files only after the corresponding architectural drawings have been officially approved by the IDA. The IDA is responsible for reviewing and approving architectural drawings and issuing building permits for industrial facilities. This change is part of an integrated package of facilitation measures introduced by the Ministry of Industry to simplify procedures for industrial investors.
Nahed Youssef, Chairperson of the IDA, stated that the measure is part of the Ministry of Industry's efforts to simplify procedures for industrial investors and eliminate duplication in the review process. The ministry's recent measures, including a 90% reduction in the estimated construction cost used as the basis for calculating insurance requirements, have exempted the largest segment of small and medium-sized industrial establishments from submitting insurance policies to the Decennial Insurance Pool.
The new mechanism aims to facilitate procedures for the remaining industrial projects that are still subject to the insurance requirement by coordinating the review process between the IDA and the insurance pool, reducing processing times and accelerating the issuance of building permits. Large-scale projects required to obtain the pool's approval for building permits must submit a copy of the architectural drawings approved and stamped by the IDA, along with an official letter from the authority confirming that the drawings have been approved.
The requirement is intended to ensure consistency between structural designs and approved architectural drawings while preventing the duplication of technical reviews by the two entities. According to Youssef, files received by the Decennial Insurance Pool before November 1, 2026, will continue to be reviewed and approved under the previous procedures, without delays or disruption, ensuring that ongoing industrial projects are not affected by the implementation of the new mechanism.
Youssef urged investors to access the relevant services through the IDA's headquarters in the Fifth Settlement, which also houses a permanent branch of the Decennial Insurance Pool. The measures follow directives from Minister of Industry Khaled Hashem to continue developing the industrial licensing system and simplifying procedures for investors, as part of ongoing coordination between the IDA and the Decennial Insurance Pool.
The IDA's move is expected to have a positive impact on industrial investors in Egypt, reducing processing times and increasing efficiency in the issuance of building permits. The new mechanism is part of the government's efforts to improve the business environment and attract investment in the industrial sector.
Key points
- IDA streamlines industrial building permit procedures from November 1
- New mechanism eliminates duplication in review process
- Measures aim to facilitate procedures for industrial investors
