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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Following his recent meeting with export councils, Prime Minister Mostafa Madbouly projected Egypt's non-oil exports to reach $48-50 billion by year-end—a 20% rise from 2024—while confirming the $145 billion total exports target by 2030 is achievable amid the lowest trade deficit in a decade.

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Egypt is seeking to attract major global automakers to localize the production of electric vehicles and components as part of a national strategy to meet domestic demand and expand exports, Prime Minister Mostafa Madbouly said on Tuesday. The government is prioritizing the National Automotive Manufacturing Programme to transition toward clean energy and reduce reliance on traditional fuels. During a meeting with the ministers of industry, finance, and investment, Madbouly emphasized building a major industrial base capable of enhancing regional and international competitiveness.

Prime Minister Mostafa Madbouly urged business leaders to double their investments in Egypt, citing the country's lowest trade deficit in a decade and record non-oil exports as signs of a promising economic climate. Speaking at a meeting with export council heads and Investment Minister Hassan El-Khatib, Madbouly called on local and foreign investors to seize current opportunities.

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Deputy Prime Minister Kamel Al-Wazir chaired a ministerial meeting that approved three new licences for cement factories, alongside two industrial projects in the Suez Canal Economic Zone worth $1.29bn. The decisions aim to boost production capacity, meet domestic demand, and prepare for regional reconstruction efforts. The projects are set to enter commercial production within one year.

 

 

 

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