2026 Report Calls for Industrial Sandbox to Close Digital Policy Gap
The 2026 Annual Entrepreneurship Sector Report, issued by Intilaq for Entrepreneurship, has identified a policy gap in Egypt’s industrial sector, citing the absence of a dedicated regulatory sandbox for manufacturing and a comprehensive framework for industrial digitalization. The report recommends launching a limited sandbox targeting small and medium-sized industrial companies.
Digitalization and Regulatory Gaps
The report said the Ministry of Industry’s Digital Industry Platform remains under development, with no confirmed launch date. This leaves the manufacturing sector without a digital policy tool comparable to regulatory sandboxes available in other sectors.
As a short-term solution, the report recommended announcing a clear and confirmed timetable for launching the Digital Industry Platform while simultaneously conducting a dedicated manufacturing regulatory sandbox involving a selected group of companies, with 50 small and medium-sized enterprises cited as an example.
The proposed pilot would give industrial companies a defined pathway to test programs supporting the adoption of digital technologies, rather than waiting for a platform whose operating date remains uncertain. Its results could then be assessed before expanding the initiative.
Industrial Laws and Incentives
The report also reviewed the legislative and regulatory framework governing the sector. It noted that Investment Law No. 72 of 2017 provides several incentives, including tax exemptions, customs reductions and the “Golden License” mechanism.
It also pointed to Industrial Development Law No. 95 of 1992, administered by the Industrial Development Authority, as the main framework for licensing industrial activities. Meanwhile, Law No. 152 of 2020 on the Development of Medium, Small and Micro Enterprises provides reduced tax rates for small businesses.
The report further highlighted the expansion of tax incentives under Tax Incentives Law No. 6 of 2025.
Intellectual Property and Startup Support
The report said the Supreme Council for Intellectual Property was established in late 2025 to align intellectual property rights. It also highlighted the launch of the Egyptian Startup Charter on February 7, 2026, aimed at coordinating support for startups operating in manufacturing as they enter the market.
The charter runs for five years and targets support for 5,000 projects while seeking to attract $1 billion in financing.
The report concluded that strengthening manufacturing requires more than increased investment. It also calls for a clear digital industrial policy and an experimental environment where companies can test new technologies and solutions, helping improve productivity and narrow the gap with international standards.