The Egyptian Industrial Development Authority has announced the results of its first land allocation for industrial projects through a lease-to-own system. A total of 300,000 square meters of land has been allocated in 8 industrial zones across the country. These zones include New Borg El Arab, Wadi El Natrun, El Qatamiya, El Tenth of Ramadan, New October 6th, El Sadat, New Taiba, and New Akhmim.
The allocation process was carried out through the Egypt Industrial Digital Platform from August 15 to 31. The platform allowed investors to submit their applications, which were then evaluated using an electronic system with objective and transparent criteria. The evaluation process aimed to ensure fairness and equal opportunities among applicants. The authority received significant interest in this allocation, reflecting investors' enthusiasm for the new lease-to-own system.
The lease-to-own system is designed to provide an alternative investment mechanism that stimulates the private sector while reducing the initial financial burden on investors. The system allows investors to start their projects with minimal costs and allocate their resources towards construction and equipment purchases. Investors can also transition to ownership after demonstrating seriousness and starting production, with the option to deduct rental payments from the total land price.
The allocated lands are intended for various strategic industries, including engineering, pharmaceuticals, food, chemicals, construction materials, automotive, electronics, and textiles. The authority aimed to link the offered opportunities with targeted industries to promote local manufacturing, reduce import gaps, and enhance project feasibility and sustainability.
Investors who have been allocated land can now check their application status and allocation results through the Egypt Industrial Digital Platform. The authority will also send SMS and email notifications to successful investors to inform them of the results and guide them through the next steps. The allocated lands are located in 8 industrial zones, including New Borg El Arab, Wadi El Natrun, and El Tenth of Ramadan.
The Industrial Development Authority emphasized that successful investors must adhere to the specified timeline for project implementation, which spans 24 months from the date of land handover. The timeline includes specific milestones, such as obtaining a building permit within 6 months, completing 100% of the industrial foundation within 12 months, and finishing 100% of the construction within 18 months.
Failure to meet any of the specified milestones may result in the cancellation of the land allocation and retrieval of the land. This ensures the seriousness of the investment and optimal utilization of industrial lands. The authority's efforts aim to stimulate industrial growth and provide opportunities for investors to establish and expand their projects in Egypt.
Key points
- The Egyptian Industrial Development Authority allocated 300,000 sqm of land in 8 industrial zones through a lease-to-own system.
- The allocation process was carried out through the Egypt Industrial Digital Platform, ensuring transparency and fairness.
- The lease-to-own system aims to reduce the initial financial burden on investors and stimulate industrial growth in Egypt.
