Cairo: Kamel El-Wazir, the Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, recently convened an extensive meeting with Hassan El-Khatib, Minister of Investment and Foreign Trade, to deliberate over the criteria needed for the approval of establishing new free zones.

According to State Information Service Egypt, the meeting was attended by Hossam Heiba, Chairman of the General Authority for Investment and Free Zones, along with several leaders from the Ministries of Industry, and Investment and Foreign Trade. During the discussions, they reviewed the criteria for approving special free zones, which include targeted activities, geographical location, employment opportunities, export potential, foreign funding sources, technology used, project area, capital, investment costs, and reliance on local components.

Each criterion is assigned a score, and only projects achieving a score of 70 or above are accepted to operate under the special free zone system. Those that do no
t meet this threshold are directed to other investment systems. El-Wazir emphasized the Ministry of Industry’s commitment to enhancing investment free zones, which appeal to investors through streamlined procedures and a single authority for licenses.

He stressed the need to consider amendments to the requirements for establishing new investment zones, suggesting increased local component percentages and investment costs, designating these areas for significant industrial projects prioritised for the Egyptian market. The ministry has pinpointed 23 promising industries to encourage investor capital in Egypt, aiming to localize these industries and reduce import bills.

El-Wazir also highlighted the importance of including these industries in the targeted activities list for establishment under the free zone system, with the potential for periodic modifications based on Egypt’s economic needs. Furthermore, he underscored the necessity of determining the electrical capacities of industrial units in these zones
and ensuring investors are informed about these capacities and technical requirements before contracting.

He instructed the General Authority for Investment and Free Zones to coordinate with the National Accreditation Council to accredit advanced offices involved in examining technical matters and documents related to licenses within the investment zones.