Promoting Industrial Growth and Encouraging Foreign Direct Investment in Egypt
Provision of Industrial Land
- The lack of objectivity and transparency in the allocation and pricing of land, as well as the absence of comprehensive information on the availability of land, prices, and acquisition procedures.
- Land policies are developed in the absence of an updated integrated land information system.
- Lack of standardized procedures for land allocation across the various government entities, and lengthy and cumbersome allocation procedures.
- The Prime Minister should promptly issue a decree to clarify jurisdictional issues related to industrial land; the decree should also clearly outline the role and function of the New Urban Communities Authority and IDA; the former should have jurisdiction over the land, infrastructure, and the provision of utilities, while the latter should have sole jurisdiction over land administration and allocation.
- Resolve the legal conflict regarding the jurisdiction of IDA over industrial land, as stipulated in the law regulating IDA. If needed, issue a new law that clearly delineates the jurisdictional authority of different government entitles over industrial land and the responsibility for providing utilities and allocation of land to the final beneficiary.
- Create a well-integrated and accessible information system for industrial lands; ensure that it remains updated.
- Replace the numerous laws governing state land with a single unified and simplified law to administer it.
- IDA should be designated as the sole entity for interacting with investors.
- Create a land bank to serve as a database, listing all available industrial land, the price of each plot of land, and information regarding the current status of utilities and infrastructure.
- A coordinating council, affiliated with the Cabinet, has been established to study the challenges facing investors in industrial zones.
- The Cabinet contracted a consultancy firm (MegaCom) to examine the challenges and barriers facing investors in industrial zones and develop solutions. The firm was to consult with investors and seek their feedback and views on the barriers and solutions. The consultancy contract is funded by the Ministry of Finance.
- FEI and MegaCom discussed the recommendations included in the study. It was agreed that investors should be able to lease the land plot for ten years; the plot may be purchased if the investor demonstrates seriousness about the investment.
- Investors can acquire industrial land by accessing the investment map posted on the website of GAFI and, according to the type of projects to be established in each region. That said, many users find it difficult to deal with this online map.