The Egyptian Cabinet, chaired by Prime Minister Mostafa Madbouly, approved golden licenses for two strategic projects worth EGP 15.1 billion to localize industry and attract foreign investment. The decisions were made during its 71st meeting, focusing on an automotive manufacturing complex and a factory for office supplies and school tools. The initiatives are expected to create thousands of jobs and boost exports.
During its 71st meeting chaired by Prime Minister Mostafa Madbouly, the Egyptian Cabinet approved a package of major decisions to localize industry, attract foreign investment, expand clean energy, and support regional development.
Among the key approvals were golden licenses for two strategic projects totaling EGP 15.1 billion.
The first, awarded to MAC for Light Transport Manufacturing, involves establishing an integrated automotive complex in New October City, adjacent to the 6th of October Dry Port, valued at EGP 6.3 billion. It will cover production and assembly of passenger cars, light and medium transport vehicles, buses, components, spare parts, tyres, and painting facilities. The project is expected to generate 1,000 jobs, achieve a local component share starting at 42%, export at least half of its output, and commence operations by early 2027, supporting the localization of automotive manufacturing and electric mobility.
The second golden license went to Deli Egypt for Industry to build a factory for office supplies, school tools, and children's sports products in 10th of Ramadan City, worth EGP 8.8 billion. This marks the global Deli Group's first investment in Egypt and is projected to create 2,200 jobs, sourcing more than 50% of inputs locally and exporting at least 50% of production, with completion in February 2027.
In the energy sector, the Cabinet approved a draft presidential decree for a petroleum exploration and production agreement in the Integrated Badr El-Din area in the Western Desert, with minimum investments of $208 million. It includes drilling 44 wells to target monthly output of 105,000 barrels of oil and 1.2 billion cubic feet of gas, reducing Egypt's import bill by an estimated $25 million per month. The meeting also endorsed a $10 million grant from the Abu Dhabi Fund for Development for projects in Sohag, and a $4.3 million grant from South Korea to support green-energy infrastructure in the Suez Canal, including LNG bunkering and training facilities, aligned with developing a sustainable canal corridor by 2030.
Further approvals included Egypt hosting the 24th Conference of the Parties to the Barcelona Convention, accession to the D-8 Preferential Trade Agreement, land allocation in Sadat City for logistics development, authorization of commemorative gold and silver coins for the 150th anniversary of the State Lawsuits Authority, and updated compensation rates for public contracts. The Cabinet agreed to allocate approximately 5,837 feddans in Qena for a 1-gigawatt solar power plant with battery storage, reinforcing renewable-energy goals.