Egypt Launches LE 45 Billion Export Rebate Program
CAIRO - 22 May 2025: During a Cabinet meeting led by Prime Minister Mostafa Madbouly, Minister of Investment and Foreign Trade Hassan El-Khatib unveiled Egypt's new Export Subsidy Rebate Program for the fiscal years 2025/2026 through 2027/2028. The program represents a strategic overhaul of the export incentive framework, aimed at fostering sustainable growth and strengthening the country's global trade position.
As part of the program, 50 percent of outstanding dues owed to eligible exporters will be disbursed in cash over a four-year period, while the remaining 50 percent will be cleared through a mechanism that offsets these entitlements against current and future financial obligations.
El-Khatib confirmed that the existing program remains in line with the Ministry of Finance's budget, with a key update: the local content requirement for qualifying exports has been raised to 35 percent. He also clarified that the new rebate system will not apply retroactively.
In a significant departure from previous models, the new initiative adopts a targeted, sector-specific approach based on economic complexity and added value. The program is backed by a projected annual budget of LE 45 billion—LE 38 billion allocated directly to key sectors and LE 7 billion reserved for strategic, flexible deployment.
For the first time, exporters will receive full payments within a maximum of 90 days, with no deductions for tax liabilities—signaling a more responsive and business-friendly environment.
The revamped program has been developed in close collaboration with Egypt's export councils to reflect the specific needs and priorities of each industry. It draws from extensive consultations with experts, international best practices, and feedback gathered from more than 500 exporting companies.
El-Khatib emphasized that this initiative is part of a broader national effort to create a more competitive investment landscape. The program is supported by wider economic reforms, including exchange rate flexibility, tax relief initiatives, reduced financial burdens, and enhancements in customs clearance and trade facilitation procedures.
The initial rollout will prioritize the engineering and chemical sectors, focusing on products with high added value and economic complexity. Moreover, the disbursement model has been redesigned to allocate funds based on the actual needs of each export council—replacing the previous uniform approach and ensuring greater fairness and impact.
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