Egypt expands free zones with 152 new projects in 2025

Egypt's Cabinet has highlighted the expanding role of free zones in boosting investments, with 152 new projects added in 2025 bringing the total to 1,243. Investments and exports have risen sharply, employing more than 248,000 workers.

Egypt's Cabinet announced notable growth in its free zones, which now include 231 public and private zones that are operational or under development. In 2025, 152 new projects were established, raising the total to 1,243 from 1,091 in 2014, according to government data. Invested capital increased by 30.3% to $14.2 billion, including $2.8 billion in foreign direct investment, compared to $10.9 billion in 2014. Total investment costs rose 66.5% to $38.3 billion, while exports more than doubled to $9.3 billion, accounting for nearly 20% of Egypt's total exports. These projects employ more than 248,000 workers nationwide. The zones offer tax incentives, simplified procedures, and legal protections, attracting local and foreign investments. International bodies such as the Organisation for Economic Co-operation and Development (OECD) and the United Nations Conference on Trade and Development (UNCTAD) have praised them; UNCTAD ranked Egypt first in Africa for foreign direct investment inflows for the fourth consecutive year in January 2026. Notable projects include Leoni Egypt, producing 45,000 automotive cables daily across three zones with 15 factories and about 6,000 employees; Gid Textile with investments over $250 million and 300 production lines; and Yazaki Egypt, which invested around €30 million and exports 100% of its output. The Cabinet stated these indicators reflect the success of efforts to strengthen the investment climate, accelerate industrial growth, and expand Egypt's export base.

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The Ministry of Investment and Foreign Trade has launched a promotional and awareness campaign highlighting investment zones under Investment Law No. 72 of 2017. The three-month initiative aims to inform businesses of their advantages and performance, including EGP 66.3bn in attracted investments and over 77,500 jobs created.

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Walid Gamal El-Din, chairperson of the Suez Canal Economic Zone (SCZONE), announced that the zone has attracted investments worth about $15bn, with 70% foreign and 30% domestic from investors in 28 countries. He stated that these figures reflect growing international confidence in the zone's investment climate. The remarks came during the fifth session of the Tuesday Seminar for the 2025–2026 academic year.

Waleid Gamal El-Din, Chairperson of the Suez Canal Economic Zone, witnessed the signing of contracts for three new projects by Sakr for Electronics and Energy in the Sokhna Industrial Area. The projects involve $18m in investments and are expected to create 500 direct jobs. Operations are set to begin in early 2027.

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Mohamed El Gawsaky, CEO of the General Authority for Investment and Free Zones (GAFI), met with French Ambassador to Cairo Eric Chevallier to strengthen bilateral investment ties. El Gawsaky highlighted the depth of Egyptian-French relations, noting investments from around 200 French companies totaling about $8 billion. Chevallier praised Egypt's efforts to improve the business climate.

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