Industrial Ministerial Group reviews free zone, golden licence requests prior to Egypt's cabinet consideration

Zawya

13-05-2025

Egypt - The 23rd meeting of the Industrial Development Ministerial Group was chaired by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel Al-Wazir.
The meeting was attended by Minister of State for Military Production Mohamed Salah El-Din, Minister of Electricity and Renewable Energy Mahmoud Ismat, Minister of Public Enterprises Sector Mohamed El-Shimy, Minister of Environment Yasmine Fouad, Minister of Investment and Foreign Trade Hassan Al-Khatib, President of the Federation of Egyptian Industries Mohamed El-Sweidy, Head of the Industrial Development Authority Nahed Youssef, as well as representatives from various ministries, authorities, and senior leaders from the Ministries of Industry and Transport.
At the outset, Al-Wazir clarified that, in alignment with the directives of President Abdel Fattah Al-Sisi and Prime Minister Mostafa Madbouly, the Industrial Development Ministerial Group is tasked with reviewing all requests submitted to the Cabinet regarding the establishment of free zones or the issuance of golden licences. These requests must first be evaluated and approved by the Group before being presented to the Cabinet.
He stressed that all the relevant ministers and authorities involved in the evaluation and approval process are represented within the Ministerial Group to ensure efficient coordination and decision-making.
Al-Wazir also highlighted the government's commitment—under the direction of the political leadership and the Prime Minister—to attracting foreign and Arab private investment. This includes encouraging partnerships with public sector factories, optimizing the use of available resources, and maximizing the return on underutilized state-owned assets. The overarching goal is to benefit the Egyptian economy while creating attractive investment opportunities.
During the meeting, the committee reviewed a request from a private sector company seeking to partner with the Misr Helwan Spinning and Weaving Company, a subsidiary of the Holding Company for Cotton, Spinning, Weaving, and Clothing. The proposed partnership would allow the private entity to utilize a portion of the factory to produce its goods.
The committee approved the request, with the Minister reaffirming the Ministry of Industry's firm commitment to the political leadership's directives to safeguard state-owned assets—especially industrial infrastructure. He emphasized that metal structures and concrete buildings in public sector factories and facilities should be preserved and maintained rather than demolished, to make full use of existing infrastructure and reduce the capital cost of establishing new production facilities.
'This approach,' Al-Wazir stated, 'will significantly reduce the financial burden of building new plants and launching industrial projects from scratch.' He added that the Ministry is working closely with relevant stakeholders to develop clear technical and engineering standards for assessing the current condition of industrial facilities, determining the most effective methods for maintenance and modernization.
He further explained that underutilized or adjoining land will be developed either internally or through partnerships with the private sector, via leasing agreements or by selling land at its fair market value. This strategy aims to enhance the value of existing assets and make them a cornerstone of the country's sustainable industrial development plans.
The group also reviewed a request from a company applying for a golden licence to establish a soda ash production facility in New Alamein, with an estimated investment of $640 million. The project's economic indicators and environmental assessment were presented during the meeting. The committee agreed on the necessity of conducting a comprehensive study covering key aspects such as electricity consumption, operational costs, environmental mitigation measures, and sludge management systems.
Al-Wazir announced that a subcommittee would be formed from within the Ministerial Group to evaluate the project in detail and ensure it complies with environmental regulations. He emphasized that no industrial waste would be permitted to be discharged into the sea or injected underground—regardless of the project's economic benefits—in order to protect groundwater, soil quality, and ecological balance. Compliance with environmental standards, he noted, is a non-negotiable prerequisite for licensing and operating any industrial project. The Ministry of Industry, he added, adheres to a clear policy that balances economic development with environmental sustainability.
The Minister also highlighted a study prepared by the Arab Organization for Industrialization proposing the establishment of an MDF (medium-density fiberboard) production plant using palm fronds. The proposed facility, which would have an annual capacity of 100,000 cubic meters, is to be built in partnership with German investors in the South Valley Governorate, home to more than 4 million palm trees. The initiative aims to convert palm waste into industrial raw materials, instead of burning or burying it.
Al-Wazir underscored the importance of developing an integrated industry around palm waste, suggesting that the existing Qena facility be used as a pilot site for six months to test production processes. If successful, the pilot would pave the way for a full-scale manufacturing plant.
Additionally, the meeting reviewed a golden licence request for an agricultural processing project in Sadat City. The request was approved, contingent on the completion of necessary industrial permits. The Minister reaffirmed that golden licences are reserved for strategic projects, and emphasized the need for expedited issuance of all required approvals to facilitate timely implementation.
A separate study on Egypt's mining resources was also presented, highlighting their critical role in supporting the country's industrial development. Al-Wazir stressed the importance of maximizing value-added production and increasing the export of processed minerals—particularly calcined kaolin—after satisfying domestic demand.
The study recommended measures to raise the concentration of phosphate ore to above 25% in order to produce higher-value products and support the local manufacturing of fertilizers and chemicals. It also addressed challenges related to the availability of strategic raw materials, especially given the global increase in demand. The Minister emphasized the necessity of minimizing waste in the use of high-quality limestone and promoted alternative uses such as producing concrete bricks from recycled materials.
The meeting concluded with a discussion on the potential for expanding the white sand sector and associated mineral industries. The committee recommended upgrading existing mining infrastructure, expanding production of rock wool, and enhancing connectivity between industrial zones and mining areas to ensure efficient resource utilization. These efforts aim to boost the national economy and strengthen the competitiveness of local industries.