Egypt Expands Permissible Urban Industrial Activities Fourfold to Boost Manufacturing
Egypt’s Minister of Industry, Eng. Khaled Hashem, has issued a landmark decree reorganizing the licensing for industrial activities located outside designated industrial zones. The new regulation significantly eases restrictions for investors by increasing the number of industrial activities permitted within urban perimeters and residential clusters from 17 to 65 sectors. These activities are specifically selected for having a minimal environmental impact, allowing for more dynamic growth in small and medium enterprises (SMEs).
The decree prohibits new industrial operations outside specialized zones unless they fall under a predefined "White List" of safe activities or require a non-urban environment due to their operational nature. Minister Hashem emphasized that this move is designed to streamline procedures and provide flexibility for the private sector while maintaining strict environmental and safety standards set by the Industrial Development Authority (IDA). Existing facilities will retain their licenses and are permitted to expand their operations, provided they comply with the updated safety requirements.