Industry minister issues new rules for licensing outside designated zones

Egypt's Minister of Industry Khaled Hashem has issued a new decision regulating the licensing of industrial activities outside officially designated zones. The rules aim to strengthen oversight while streamlining procedures for investors and will be published in the Egyptian Gazette, taking effect the day after.

The decision maintains the general ban on industrial activities outside designated zones but introduces exceptions. It permits a list of activities in urban and built-up areas, as detailed in an attached annex, expanding the number from 17 to 65—focusing on those with low environmental risks. These can be established in standalone buildings within approved urban boundaries and residential clusters.

It also allows certain activities outside urban boundaries if their nature requires it, subject to approval from the relevant administrative authority and compliance with Industrial Development Authority requirements. Meanwhile, it prohibits specific activities listed in another annex, even within designated zones.

Hashem stated that the framework expands permitted urban activities. Licenses for existing facilities remain valid, allowing expansions or additions if compliant; non-compliance may lead to revocation.

The decision cancels Ministerial Decree No. 16 of 2025. The Industrial Development Authority will issue executive procedures and periodically review the lists, proposing updates to the minister.

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