Cairo - Mubasher: The Information and Decision Support Center of the Cabinet stated that Cairo Governorate accounts for about 14% of the total number of industrial zones, with about 25 industrial zones, noting that the number of industrial zones in Egypt amounts to 177 zones in 26 governorates, according to the database of the General Authority for Industrial Development.

This came in the issue issued by the Information Center of its periodic series “Information Reports”, which was titled “Industrial Cities and Zones... A Catalyst for Investment and Industrial Development.”

The center explained that the governorates of (Sohag - Beni Suef - Assiut) are among the governorates with the highest number of industrial zones, which is a target to open job opportunities for the people of Upper Egypt governorates. Industrial zones are also found in the border governorates, as there are five zones in each of Aswan and the Red Sea, three zones in each of the New Valley and Matrouh, and there are two zones in the governorates of North and South Sinai.

He added that the geographical proximity between the industrial zones and the export outlets was taken into consideration, as there are 10 zones in Alexandria, 11 in Port Said, 5 in the Red Sea and 2 in Damietta, and there are about 18 commercial seaports on the Red and Mediterranean Seas.
He pointed out the authorities responsible for managing industrial zones, as their management affiliation is distributed among the governorates, the New Urban Communities Authority, the Ministry of Industry, the General Authority for Industrial Development, and the General Authority for Investment and Free Zones, and the governorates account for the largest proportion of the number of industrial zones.

He pointed out that the General Authority for Industrial Development has set a weekly meeting for the governorates to meet with investors in industrial zones within the governorate in the presence of the governor, to study the problems facing investors and the obstacles present in the industrial zones therein.

The report explained the efforts to enhance the role of industrial cities and zones as a catalyst for industrial investment. In the context of targeting the stimulation of local manufacturing through industrial zones, the state has taken a number of measures, most notably preparing the legislative environment, setting institutional and executive frameworks, including the establishment of an investment unit headed by the Council of Ministers and forming a ministerial group in July 2024 for industrial development, in addition to expanding the scope of industrial investment incentives, expanding the thinking of the industrial developer, enhancing the thinking of sustainable industrial zones, adopting integrated industrial cities and zones, developing infrastructure and logistics, and enhancing the availability of mineral raw materials.

He added that Egyptian efforts are still accelerating to enhance industrial investment and deepen local manufacturing by strengthening the role of industrial cities and zones. Recently, it was approved to oblige investors in all industrial zones across the country to establish an investors association for each industrial zone, formed by investors in the zone, to manage the industrial zone and supervise all its internal affairs, in addition to targeting investors on large areas to establish a new and renewable energy station such as wind or solar energy; to reduce dependence on the main networks of traditional energy provided by the state to industrial facilities, which contributes to the sustainability of energy for factories.

He pointed out the trends to enhance the role of industrial cities and zones in Egypt, as the industrial sector in Egypt is distinguished from other economic sectors by its high contribution to achieving the general goals of sustainable development; due to its role in developing the production base, diversifying sources of income, creating sustainable job opportunities, and creating a basic foundation for economic growth due to its interconnected relationship and strong forward and backward links with many production and service sectors, in addition to its role in developing foreign trade and improving the Egyptian balance of payments.

He pointed out that the importance of the industrial sector in Egypt is highlighted by several indicators, including the percentage of contribution of the manufacturing industry activity to the gross domestic product, as the percentage of contribution of the manufacturing industry activity (oil refining - other manufacturing industries) amounts to about 16.4% of the gross domestic product on average during the period (2014/2015 - 2023/2024), according to the Ministry of Planning database.

He noted that manufacturing industries other than petroleum refining constitute the largest share of the total added value of the industrial sector in the year (2023-2024) at 81.2% compared to 18.8% for petroleum refining.

The value of investments directed to the industrial sector amounted to 74.5 billion pounds in the fiscal year (2022-2023), thus constituting 6.4% of total investments in that year, compared to about 96.1 billion pounds in the year (2021-2022).

He added that public investments accounted for about 52.3% of the sector's investments, compared to 47.7% of private sector investments in the year (2022-2023), according to the Economic and Social Performance Follow-up Report (2022-2023) issued by the Ministry of Planning.

He pointed out the share of manufactured goods in commodity exports, as industrial exports (manufactured goods and finished goods) accounted for about 68% of total commodity exports in the fiscal year (2023-2024) with a value of about $22.2 billion according to the monthly statistical bulletin of the Central Bank of Egypt, November 2024. Gold, phosphate and mineral fertilizers are among the highest manufactured commodity exports during the fiscal year (2023-2024), which amounted to about $3.6 billion, followed by exports of wires, cables, organic and inorganic compounds and electrical appliances for home use, as the value of each of them exceeded one billion dollars.

The report pointed to the size of establishments and employment in the industrial sector, as the total number of private sector establishments operating in the manufacturing industries activity reached 430.11 thousand establishments in Egypt in 2021, with a total number of workers of about 4.6 million workers. The largest number of these establishments work in the furniture and wood products industry, at 32.1% of the total establishments, followed by the food products industry at 18.4%, according to the annual bulletin of industrial production statistics for private sector establishments for the year 2021 issued by the Central Agency for Public Mobilization and Statistics.

The report stated that Egypt ranked 67th out of 153 countries in the Industrial Competitiveness Index issued by the United Nations Industrial Development Organization, which aims to evaluate and measure the industrial competitiveness of economies through three main dimensions: the ability to produce and export manufactured goods, technological advancement and global influence. The results of the sub-indicators of the Industrial Competitiveness Index showed that Egypt is one of the best performing countries in the manufacturing value added index as well as the industrial export index.

He pointed to the industrial cities and zones and industrial development in light of Egypt's Vision 2030, as the state aims to transform local economic structures into more modern and diversified industries with a focus on horizontal expansion of industry by developing existing industrial zones and completing the establishment of industrial complexes alongside vertical expansion, in addition to localizing industrial activities for main products and expanding the establishment and development of industrial zones and complexes and supporting the development of supply chains in a way that provides great opportunities to meet local needs and increase exports, and establish industrial complexes in governorates with the least share of investments and provide additional incentives for investment in those areas.

The report explained that the state adopted the economic and social development plan for the fiscal year (2024-2025) with targets for manufacturing industries with three orientations. The first is based on stimulating local manufacturing of imported components to replace imports. The second orientation aims to develop industries with high competitiveness in promising markets while enhancing the role of the agencies concerned with supporting export activity. This strategic approach seeks to achieve annual growth in industrial exports by no less than 20%. The third orientation is based on giving priority to green, environmentally friendly industries to ensure sustainable development.

He pointed out that the fiscal year plan (2024-2025) aims to accelerate work on projects currently being implemented to complete them and maximize the return on what has been invested in construction and infrastructure works, such as: completing the facilities of the Rubiki Leather City and the industrial zones in Sohag Governorate, completing the projects of the programs and technology centers, which number 13 centers, and others.

He stated that 37% of government investments in the fiscal year (2024-2025) were allocated to industrial development, infrastructure, and industrial zone facilities, in a way that enhances the state's efforts to increase exports and achieve sustainable economic growth, according to the Ministry of Planning.