Egypt Extends Lifeline to Struggling Factories: Industry Minister Issues Decree 107/2026 with New Grace Periods
In a strategic move to stabilize the industrial sector, Eng. Khaled Hashem, Minister of Industry, has issued Decree 107 of 2026, extending and expanding the support package for stalled industrial projects. The new regulations provide flexible grace periods ranging from 6 to 18 months, depending on the project's completion rate. Factories that have achieved 75% or more of their construction will receive a 6-month extension with a 100% waiver on delay fines, allowing them to finalize equipment procurement and secure operating licenses.
Minister Hashem emphasized that the decree strikes a crucial balance between supporting "serious investors" and maintaining state discipline over industrial land management. For projects with lower completion rates (under 50%), an 18-month grace period is granted to allow for comprehensive restructuring. Furthermore, the decree introduces a "final opportunity" clause—a 3-month ultimate deadline for those previously granted extensions—warning that failure to prove seriousness within this window will lead to immediate legal action and land repossession.