Egypt's Cabinet Details Support for Auto Industry Among 7 Priority Sectors
Egypt's Cabinet Media Center has revealed a comprehensive package of incentives and investments aimed at industrial expansion, with a sharp focus on the automotive sector. The numbers speak for themselves.
The Egyptian Industry Strategy 2030 identifies seven priority sectors, topping the list is automotive manufacturing and its components. These moves come as part of a broader plan to slash import bills, boost industrial exports. Sharpen the competitiveness of locally made products. The state is betting big on this sector.
Sumitomo Plant: 15 Million Wiring Harnesses a Year
Among the models highlighted in the report, Sumitomo's wiring harness plant stands out with an annual production capacity of 15 million units. The facility's total investments in Egypt reach $155 million.
El Nasr Automotive: Dual Production Capacity
The report also detailed El Nasr Automotive Manufacturing, which boasts an annual capacity of 600 buses and minibuses, alongside 20,000 passenger cars. Investments in this plant amount to approximately 3.5 billion Egyptian pounds.
State incentives for industrial projects include tax deductions on investment costs ranging from 30% to 50%. A flat 2% tax on equipment applies, along with cash investment incentives of 35-55% of the tax paid, provided the project uses foreign currency for at least 50% of its capital. More enticingly, projects that meet production deadlines receive a 50% refund on land costs.
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