Egypt plans to develop existing free zones, introduce more starting from Alexandria

CAIRO – 30 July 2023: Chairman of the General Authority for Investment and Free Zones (GAFI) Hossam Heiba held Saturday a meeting with members of the Investors Association of Alexandria Public Free Zone to discuss ways of developing work in the area.

Heiba noted that GAFI had begun implementing the decisions of the Supreme Council of Investment chaired by President Abdel Fatah al-Sisi. The most prominent of which is banning any entity from issuing regulatory decisions that would add more financial or procedural burdens to the establishment or operation of projects, or that set more fees. That is because such decisions need to be first approved by GAFI, the Cabinet, and the council itself.

The authority's chairman pointed out that the target is supporting investors by reducing the cost of founding enterprises, the number of permits, and the duration to acquire them. That is in addition to facilitating access to land plots, issuing more Golden Licenses, and easing import of production inputs.

The two sides held talks on plans to develop the Alexandria Public Free Zone's infrastructure to keep up with the increasing needs of factories. Those plans are within the government's goal to develop existing free zones and introducing more of them nationwide.

The association's members demanded establishing a new free zone near Alexandria, given that the existing one reached full capacity. They also urged not setting a maximum for surface area, labor or capital per investor.

According to a press statement by GAFI, Egypt has nine free zones that are located in Alexandria's Amreya, Cairo's Nasr City, Port Said, Suez, Ismailiyah, Damietta, Menoufeya's Shebin El Kom, Qena's Qeft, and Media Production City (MPC) at Giza's 6th of October City.

Alexandria's free zone is the biggest as it comprises 342 enterprises, in addition to 67 affiliated projects. The total value of the enterprises and projects is $11.5 billion, and they provide 84,000 jobs.

Heiba stated that incentives tailored for each industrial sector will be approved soon by the Cabinet, stipulating the government's openness to learn about investors' suggestions.