Cairo - Mubasher: Lieutenant General Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, said that based on the Egyptian state's keenness to facilitate trade exchange and strengthen economic partnership with the United States, a number of important measures have been taken to support and open markets for American investments in the automotive sector. All restrictions on the entry of American auto parts into the Egyptian market have been lifted.

This comes to enhance the flow of supply chains and support operations and manufacturing, according to a statement from the Egyptian Ministry of Industry on Sunday.

Ministerial Resolution No. 102 of 2022 was amended by Ministerial Resolution No. 160 of 2025, making the US Federal Motor Vehicle Safety Standards (FMVSS) among the approved technical specifications permitted to enter the Arab Republic of Egypt. This represents a qualitative step towards standardizing and facilitating compliance and accreditation processes. Furthermore, all procedures have been facilitated to ensure the entry of complete vehicles produced in the United States into the Egyptian market, and to create the necessary environment for their local manufacturing. This will contribute to localizing the automotive industry, transferring expertise and technology, and providing more job opportunities.

This came during the participation of Lieutenant General Engineer Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, in the opening of the Egyptian-American Investment Forum.

The Minister stressed that these achievements are closely linked to the integration of national efforts at various levels, particularly in the areas of promoting investment, marketing Egyptian products, and opening new markets for them.

In this context, the current phase requires intensifying efforts to promote investment opportunities in the transportation sector, including railways (investment in the reconstruction, operation, maintenance and exploitation of the Abu Tartour-Qena railway line - investment in the management and operation of the distinguished railway transportation sector), the subway and electric traction: investment in (the high-speed electric train network - the East/West Nile monorail lines), and seaports through investment in projects in the Grand Alexandria Port (establishing the superstructure and managing and operating the Mex Port - establishing, managing and operating two logistics zones in the Grand Alexandria Port in two phases).

Investment in projects at Damietta Port (construction of the superstructure, management and operation of the multi-purpose terminal “Long Live Egypt 2” - construction of the superstructure, management and operation of a grain and cereal terminal), investment in construction of the superstructure, management and operation of multi-purpose terminals at Sokhna Port, as well as investment in construction of the superstructure, management and operation of seaports in (Abu Qir - East Port Said - Arish), investment in construction, management and operation of seaports in (Taba - Berenice - Gergoub), dry ports and logistics areas in (Sadat - Borg El Arab - Sohag - Kom Abu Rady in Beni Suef - Abu Simbel - Toshka - Salloum - Matrouh - Qena).

In addition to seven dry ports and logistics zones in the Sinai Peninsula, the plan also aims to promote industrial investment opportunities and facilitate the registration of Egyptian products in foreign markets.

Monitoring global industrial and technological trends, facilitating communication with research centers, and transferring modern technology are all part of the strategy to serve 28 industries identified as priorities within the National Industrial Strategy, due to their potential to achieve high added value, create job opportunities, and boost exports. These industries include pharmaceuticals, food, engineering, car tires, batteries, electric cars, textiles, chemicals, leather goods, petrochemicals, aluminum, and pumps.

According to the statement, the opening session of the forum was attended by Dr. Mostafa Madbouly, Prime Minister; Eng. Hassan Al-Khatib, Minister of Investment and Foreign Trade; Ahmed Kujuk, Minister of Finance; Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation; and Omar Mehanna, Chairman of the Egyptian-American Business Council and President-Elect of the American Chamber of Commerce.

Also in attendance were Ambassador Hiro Mustafa, US Ambassador to Cairo; Susan Clark, President and CEO of the US Chamber of Commerce in Washington; John J. Christman, CEO of Apache Corporation and President of the US-Egypt Business Council; representatives of several US companies; members of the US Chamber of Commerce and the US-Egypt Business Council; and representatives of the government and private sectors from both countries.

The Minister pointed out that Egypt's transportation networks, including the national road network, the high-speed electric train network, and railway lines, contribute to serving industrial regions and complexes across the country. This is evident in the planning of seven integrated international development logistics corridors, namely: Sokhna/Alexandria Corridor - Arish/Taba Corridor - Cairo/Alexandria Corridor - Tanta/Mansoura/Damietta Corridor - Gergoub/Salloum Corridor - Cairo/Aswan/Abu Simbel Corridor - Safaga/Qena/Abu Tartour Corridor. Localizing the industry also contributes to providing the requirements of railways, subways, and electric traction, including moving units, sleepers, signaling systems, level crossing equipment, and spare parts, thus saving the state a significant cost incurred in importing them.

The Minister reviewed the implementation of the comprehensive plan to develop and modernize the transportation system, with investments exceeding EGP 2 trillion.

The Minister explained that, as part of the National Roads Project, plans are underway to construct new roads totaling 7,000 km in length, with 6,500 km already completed. Plans are also underway to develop, duplicate, and upgrade 10,000 km of the existing road network, with 8,500 km already completed.

According to the Minister, in the context of establishing integrated developmental transverse axes on the Nile, and not just a bridge to cross the Nile and reduce the distances between the axes to 25 km, plans have been made to establish 35 new axes on the Nile, bringing the total number of Nile axes/bridges to 73 instead of 38 axes/bridges before June 2014, and 18 axes have been completed.

It is also planned to construct 1,000 new overpasses/tunnels to solve traffic congestion and eliminate surface intersections on roads and intersections with railway lines, bringing the total to 2,500 overpasses/tunnels.

The construction of 945 bridges/tunnels has been completed, in addition to the paving and upgrading of local roads within the governorates and the Decent Life Initiative, with a total length of 125,000 km, using the latest technologies to recycle asphalt layers, according to the minister.

The minister noted that in the field of sustainable, environmentally friendly mass transit, the state has implemented the Bus Rapid Transit (BRT) project on the Ring Road, one of the most important traffic arteries in Greater Cairo. The pilot operation of the first phase, without passengers, was conducted with 14 stations from the Police Academy to the Alexandria Agricultural Road. He revealed that it is planned to operate for the public starting June 1, 2025.

The Minister explained that a comprehensive plan has been developed to develop the railway system's components, based on five main axes, including the development of rolling stock, infrastructure, signaling and control systems, production workshops, and human resource development. The plan aims to increase transport capacity, maximize passenger and freight transport on the network's lines, raise safety and security levels, and reduce carbon emissions from truck transport.

The target is to increase passenger transport capacity from 700,000 passengers per day in 2014 to 1.2 million passengers per day in 2024 and 2 million passengers per day in 2030, and to increase freight transport capacity from approximately 4.5 million tons per year in 2014 to 6 million tons per year in 2024 and 13 million tons per year in 2030.

The most important work being done in these axes is the development of the mobile units through the supply of 210 new locomotives, the rehabilitation of approximately 220 GE locomotives, the supply and operation of 7 Talgo trains, 1,350 new passenger cars, and 1,215 freight cars of various models. This is in addition to the development of the infrastructure, which includes the renewal and maintenance of the railway network, which has a total length of 10,000 km, the development of the level crossings and stations located on the network, and the development of the signaling systems with the aim of converting the network lines from the mechanical system to the electronic system, to increase safety and security rates.

According to the Minister, the signaling systems on the main network lines, totaling 2,000 km, have been and are currently being developed. Production workshops are also being developed, with plans to develop 33 main and subsidiary workshops in cooperation with specialized international supplier companies such as General Electric, Talgo, and Transmashholding.

The first phase of workshop development has been completed, with 10 new workshops being built out of a planned 11. Attention is also being paid to the human element through the implementation of a comprehensive plan to qualify the human element, as the basic pillar of the railway system. This plan is based on establishing new standards and methodology for selecting the human element scheduled to join the railway sector workforce through qualification and training at the Military College, the Military Technological College, and the Higher Institute of Transportation Technology.

The Minister pointed out that in order to achieve Egypt's Vision 2030 and build the new republic, the foundations of which were laid by the President of the Republic, which include expanding the establishment of a sustainable, green, and environmentally friendly urban transportation network, the Ministry of Transport is implementing a comprehensive plan to complete the metro network in parallel with the establishment of a network of rapid mass electric traction means to keep pace with the extensive strides taken by the state in the field of urban expansion, stimulating economic, commercial, and tourism activity, serving industrial zones, accommodating the increase in demand for transportation, and providing advanced, safe, and distinguished mass transportation services to citizens throughout the Republic, the most important of which are the high-speed electric train network with a length of 2,000 km, the light electric train with a length of 113 km, the two monorail lines east and west of the Nile with a length of 100 km, and the fourth metro line with a length of 46.5 km. The third metro line with a length of 42 km was recently completed.

He pointed out that in light of the President's directives to work on localizing the Egyptian railway industries, the Ministry of Transport has communicated with a group of international companies to invest in the field of manufacturing railway transportation, with the aim of providing foreign currency, transferring expertise to Egyptian workers, and exporting the surplus to African and Arab countries. In this context, coordination was made through (memoranda of understanding / agreements of terms and conditions / contracts) with a number of international companies to establish factories specialized in various railway fields, such as (the French company Alstom - the Spanish company Talgo - the Spanish company Coolway - the South Korean company Hyundai Rotem - the company Nerk - the Austrian company Vost Alpine - the Suez Steel Company), in addition to the SEMAF factory affiliated with the Arab Organization for Industrialization.

The Minister added that the Ministry of Transport has implemented a set of strategic objectives in several axes, the first of which is the development of seaports, which includes the construction of new quays with a total length of 67 km with depths ranging between (18-22) meters, bringing the total length of quays in seaports to 100 km, in addition to the construction of 3 new ports to bring the number of Egyptian ports to 18 ports, raising the ports’ capacity to 400 million tons, 40 million TEUs, 10 million transit containers, 30,000 ships annually, constructing 15 km of breakwaters and deepening navigation channels, and simplifying customs clearance procedures.

The second axis is to develop the Egyptian maritime fleet to reach 36 vessels by 2030, fully owned by companies affiliated with the Ministry of Transport (the National Navigation Company, the Arab Bridge Maritime Company, the Cairo Ferries Company, and the Egyptian Oil Tankers Company), so that the Egyptian fleet will be capable of transporting 25 million tons of various goods annually.

The third axis includes establishing strategic partnerships with major international container terminal management and operation companies and international shipping lines to ensure the arrival and frequency of the largest possible number of international ships to Egyptian ports, double the ports' operating capacity, and expand transit trade. He pointed out that the Ministry of Transport is currently implementing a comprehensive plan to establish 33 dry ports and logistics zones across the country, as a key component of the logistics corridors that will serve industrial zones and integrate them with the associated means of transportation.

Supporting Egyptian investment

The Minister affirmed that the state is keen to launch competitive tax and customs incentives to encourage investment in high-value-added sectors.

The partnership with the private sector has also been strengthened as a genuine partner in development, alongside support for technology localization, local manufacturing of components and machinery, linking scientific research to industrial needs, and enhancing human resource efficiency through vocational and technical training programs that respond to market requirements.

The state has launched a number of qualitative financing initiatives, most notably the initiative to support productive sectors with loans amounting to EGP 120 billion at a 15% interest rate, the initiative to finance struggling factories and increase exports in cooperation with the Central Bank, the initiative to finance production lines and equipment worth EGP 30 billion at a 15% interest rate, in addition to the initiative to support small and medium enterprises at a 5% interest rate, and the export support initiative. The total disbursements amounted to approximately EGP 190 billion until June 2024, with an additional EGP 23 billion approved to be disbursed within 90 days of submitting documents, starting next July.

He pointed out that a package of legislative measures has been taken to support investment, most notably the activation of Local Product Preference Law No. 5 of 2015, and Investment Law No. 72 of 2017, which grants tax exemptions and discounts of up to 50% in the most needy areas, and granting investors who transfer their funds from abroad new investment incentives under Prime Ministerial Resolution No. 77 of 2023, amounting to 55% of the investment value. This is within the framework of the state's efforts to attract foreign cash flows, stimulate direct investment, and provide a supportive climate for the growth of productive and export projects, thus contributing to supporting the national economy and enhancing its competitiveness at the regional and international levels.

The Automotive Production Incentives Program was also launched as part of the national strategy to advance the Egyptian automotive industry. The program includes a production incentive program, stipulating that it starts with a 30% local added value, reaching 60%, with a local component percentage of no less than 30%, reaching more than 35% by the end of the program, and that production is no less than 10,000 cars per year, reaching 100,000 cars of each model, with an investment of no less than $4 million.

He explained that the program provided incentives to exporting companies to encourage exports, and these incentives are disbursed in addition to the incentives disbursed for investment under various laws.