Egypt allocates over 300,000 sqm of industrial land under rent-to-own scheme
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Egypt's Industrial Development Authority has allocated more than 300,000 square metres of industrial land to investors under a rent-to-own model designed to cut the upfront cost of building factories.
Egypt's Industrial Development Authority (IDA) has allocated over 300,000 square metres of industrial land to investors under a rent-to-own scheme, part of a push to lower the upfront financial burden on companies setting up factories.
The allocated plots are located in New Borg El Arab in Alexandria, Wadi El Natrun in Beheira, Katameya in Cairo, 10th of Ramadan in Sharqeya, New 6th of October in Giza, Sadat in Menoufeya, New Tiba in Luxor and New Akhmim in Sohag.
Nahid Youssef, chairperson of the IDA, said the offering was launched under Industry Minister Khaled Hashem's directives to introduce alternative investment mechanisms that encourage private-sector investment and reduce investors' upfront financial burden. Applications were submitted through the Egypt Industrial Hub digital platform between 15 and 31 August and reviewed after the deadline through a fully automated electronic system.
Under the mechanism, investors can move to full ownership once they demonstrate seriousness and begin actual operations, with all rent payments deducted from the total purchase price of the land. The IDA tied the plots to targeted industrial activities, including engineering industries, pharmaceuticals and biotechnology, food industries, chemicals, building materials, automotive and components, electronics, textiles and ready-made garments.
Successful investors must comply with a 24-month implementation schedule from the date they receive the land, obtaining a building permit within six months, completing all of the industrial facility's foundations within 12 months, completing construction covered by the permit within 18 months and delivering the project within the 24-month schedule. Youssef said the IDA will cancel allocations and withdraw land where investors fail to meet any stage of the schedule.