Egypt offers exceptional incentives to attract global automakers and boost domestic production

Prime Minister Mostafa Madbouly announced that Egypt is prepared to offer exceptional incentives to international car manufacturers willing to localize production within the country. This initiative is part of a broader government effort to strengthen the domestic automotive industry. Madbouly stated that discussions with several carmakers are in advanced stages, with the goal of moving towards large-scale vehicle production in Egypt. The government places strategic importance on localizing the automotive sector, with particular attention given to electric vehicles as part of a push for cleaner energy. Industry Minister Khaled Hashem detailed the national program, developed in cooperation with manufacturers, which includes a working group comprising members from the Supreme Council for the Automotive Industry, private sector representatives, the Ministry of Finance, the Ministry of Investment and Foreign Trade, and the Automotive Industry Unit. Alaa Salah, head of the Automotive Industry Unit, outlined key program requirements such as minimum annual production volumes, target local content ratios, maximum engine capacity, and value-added share from manufacturing processes for both conventional and electric vehicles. The program also offers incentives tied to environmental compliance, new investments, and export expansion. The Ministry of Investment and Foreign Trade is exploring activating incentives under Investment Law No. 72 of 2017 for the automotive sector and related in