Egypt's Minister of Investment and Foreign Trade, Dr. Mohamed Farid, has issued a decree (No. 340 of 2026) that repeals previous decisions (Nos. 190, 203, and 258 of 2026) regulating export fees on nitrogenous fertilizers and ammonium nitrate. The decree, effective August 1, aims to boost Egyptian exports. The initial decision (No. 190 of 2026) imposed an export fee on all types of nitrogenous fertilizers.
The subsequent decision (No. 203 of 2026) exempted pure ammonium nitrate with a nitrogen concentration above 34.2% from the export fee. Another decision (No. 258 of 2026) set the export fee at 10% of the Free on Board (FOB) value for all types of nitrogenous fertilizers. These decisions were made to regulate and monitor Egypt's fertilizer exports.
The recent decree was made in accordance with a Cabinet decision (No. 104, dated July 30) and a proposal by the Head of the External Trade Agreements Sector. This move is expected to enhance Egypt's competitiveness in the global fertilizer market. Egypt has a significant production capacity for nitrogenous fertilizers, accounting for 8-10% of global production.
According to Mohamed El-Khoshin, head of the Egyptian Fertilizer Distributors Association and a member of the Arab Fertilizer Union, the cancellation of these fees will improve Egyptian companies' ability to access foreign markets and increase the competitiveness of Egyptian products. El-Khoshin noted that Egyptian fertilizers are in demand in several global markets, particularly in Europe and East Asia.
El-Khoshin highlighted that the Arab region has a substantial production capacity for nitrogenous fertilizers, accounting for 25-30% of global production. He emphasized that restoring Egypt's export competitiveness requires reducing production and shipping costs, as well as opening new markets to increase foreign currency earnings.
The Egyptian fertilizer industry is a significant contributor to the country's economy, and this decision is expected to support the sector's growth. The move is also likely to benefit farmers, who rely on fertilizers for their crops. By increasing exports, Egypt can earn more foreign currency, which is essential for the country's economy.
The decision to scrap export fees on nitrogenous fertilizers is a positive step towards promoting Egyptian exports and supporting the country's fertilizer industry. The industry is expected to benefit from increased competitiveness and access to foreign markets.
Key points
- Egypt's Ministry of Investment cancels export fees on nitrogenous fertilizers and ammonium nitrate to boost exports.
- The decision aims to enhance Egypt's competitiveness in the global fertilizer market.
- Egyptian fertilizers are in demand in several global markets, particularly in Europe and East Asia.
