Where is Egypt Heading? (4)

New Industrial Initiative: Egypt Turns a New Page for Investors

In my first three articles, I tried to discuss Egypt's economic transformation, industrialization process, and Vision 2030. This time, I would like to evaluate the recently announced new industrial incentives and how these decisions might reflect on the investment environment.

As a Turkish businessperson and investor who not only visits Egypt but has lived, produced, invested, and been part of the business world here for many years, I have had the opportunity to evaluate economic relations between Turkey and Egypt based on realities on the ground. At the point we have reached today, I believe Egypt is undergoing an important transformation process to strengthen its production economy.

The new incentive package announced by Minister of Industry Engineer Kamel El-Wazir (Note: Halit Haşim as written in original text) is, in my view, not merely composed of administrative regulations; it demonstrates the emergence of a new, investor-focused industrial approach.

In particular, the lease-to-own system introduced for industrial land is of a nature that can significantly reduce investors' initial investment costs. The ability of investors to lease land for 7 to 21 years, obtain the right to purchase it after starting production, and have their paid rents offset from the sale price provides a striking convenience, especially for companies just starting production.

Another important development is the digitalization of investment processes. Thanks to the Unified Digital Platform Supporting Producers, investors will be able to access many services from land applications to permit processes, from feasibility studies to export supports through a single system.

The presentation of artificial intelligence-supported pre-feasibility services on the platform, bringing together local machinery and raw material suppliers in a digital environment, establishing a B2B trade infrastructure for industrial products, and targeting the resolution of investor complaints within specified timeframes show that Egypt has placed digital transformation at the center of its industrial policies.

The announced incentives cover not only large industrial enterprises but also rural development. Within the scope of the "Producer Villages" project, 100 small factories planned to be established over the next three years aim to reduce agricultural product losses, create added value, and generate new employment areas in rural regions.

In addition, reducing official construction unit costs based on industrial structures by approximately 90% stands out as a step that can significantly lower the costs investors face during licensing and other official procedures.

Of course, no incentive package alone guarantees success. The ultimate determining factor is the rapid, transparent, and predictable implementation of announced policies on the ground. The greatest incentive for an investor is a reliable investment environment, stable rules, and a solution-oriented public administration.

At this point, the establishment of a new commission to evaluate investor complaints on a weekly basis is also a striking development. Because a management approach that listens to the voice of the investor and produces rapid solutions to problems is one of the elements directly affecting long-term investment decisions.

From Turkey's perspective, these developments can open the door to new opportunities. Especially for Turkish companies engaged in food processing, agro-industry, machinery manufacturing, packaging, logistics, and production for export, Egypt is becoming an increasingly attractive production center.

My observation in the field is this: Egypt is no longer just a country calling for investment; it is adopting a new approach that tries to reduce obstacles to investment, encourages production, and aims to make its industry more competitive.

I believe that if these reforms are implemented with determination in the coming years, Egypt will come even closer to its goal of becoming not only a regional market but a strategic production and export base between Europe, Africa, and the Middle East.

Because industrialization is not merely building factories.

Industrialization means giving confidence to the investor, facilitating production, supporting technology, and paving the way for the private sector.

The new incentives announced today will, in my opinion, go down in history as one of Egypt's most important steps in this direction.