Egypt Unveils New Incentive Package to Attract Investment in the Mining Sector
Egypt’s Ministry of Petroleum and Mineral Resources has announced a new set of reforms and incentives designed to enhance the country’s appeal for investment in the mining sector, as part of a broader strategy to position Egypt as a regional hub for mineral industries.
According to Minister Karim Badawi, the incentives include reducing annual licensing fees to make early-stage exploration more economically viable and lessen the initial financial burden on companies, particularly during the exploratory phases. The announcement came in an official statement issued by the ministry on Friday.
Badawi added that a series of tax and customs exemptions will be granted on exploration equipment, supplies, and related services. Additionally, new licensing options will allow companies to explore multiple minerals under a single permit, reflecting the diverse geological profile of Egypt’s mining regions.
The minister explained that the reforms also introduce fast-track, low-cost reconnaissance permits aimed at startups, enabling them to assess initial prospects before committing fully to exploration and drilling activities.
Badawi noted that Egypt’s new mining agreement model has been developed through consultations with investors and aligns with international best practices. Its financial terms prioritize transparency and competitiveness, while regulatory procedures have been streamlined through a unified licensing system managed by the Egyptian Mineral Resources Authority. This is expected to accelerate permit issuance and reduce bureaucracy.
During his visit to Perth, Australia — one of the world’s leading mining hubs — the minister revealed that Egypt is preparing to launch an extensive airborne survey covering several regions across the country. The initiative aims to identify promising mining zones, with a particular focus on critical minerals essential for renewable energy technologies.
The minister emphasized that these measures are part of a broader national effort to minimize investor risk, encourage the entry of emerging and mid-sized companies into the Egyptian mining market, and elevate Egypt’s standing as a leading mining destination in Africa and the Middle East.
Egypt is intensifying efforts to attract greater investment into the mining sector, especially gold. The government aims to draw an additional 1 billion dollars in mining investments by 2030. To achieve this, legislative reforms have been enacted, investment frameworks have been improved, and competitiveness has been strengthened to increase the sector’s contribution to GDP to between 5 and 6 percent over the next decade, in line with international standards for risk reduction and exploration facilitation.