Egypt’s IDA streamlines rules for changing industrial activities amid licensing reforms

Building on recent Industrial Licensing Committee discussions, Egypt’s Industrial Development Authority (IDA) has introduced streamlined regulations allowing manufacturers to change or add industrial activities within approved zones, aiming to reduce administrative burdens and speed up licensing. The framework covers key sectors including engineering, food industries, leather, textiles, and chemicals.

Following directives from Industry Minister Khaled Hashem and recent deliberations at the inaugural Industrial Licensing Committee meeting, Egypt’s Industrial Development Authority (IDA) has rolled out new regulations enabling factories to switch activities within the same industrial sector without prior environmental approvals or referrals to change committees.

High-risk activities and projects under priority initiatives, such as the state’s subsidised financing programme for machinery and equipment, will still need prior approvals. For adding new activities, investors now submit a technical amendment request to their operating licence via the IDA or its branches, if within the same sector and not exceeding a 25% increase in approved power capacity.

IDA Chairperson Nahed Youssef stated that the measures strike a balance between simplifying procedures—echoing the committee's focus on cutting costs and delays—and maintaining environmental compliance and occupational safety standards.

Previously, such changes required multiple approvals and technical assessments. The reforms aim to allow factories to expand, integrate activities, and scale production, supporting Egypt’s industrial strategy and enhancing sector competitiveness.

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