Minister of Industry Discusses Potential Expansions with Mercedes and Leoni in Egypt

Egypt's Minister of Industry Khaled Hashem met with a delegation from the German-Arab Chamber of Industry and Commerce in recent hours to discuss attracting German automotive companies to Egypt or expanding the investments of those already operating locally. The meeting included German Ambassador Jürgen Schulz and Chamber President Mustafa El-Bagoury, with separate sessions held with Mercedes, Siemens, Leoni — a specialist in automotive wiring harnesses — and Cube for bicycles. The goal is clear. The ministry is working to turn Egypt into a regional industrial base for vehicles and components by drawing global brands and medium-sized companies with advanced technologies.

National Automotive Program as a Key Pillar for Major Brands

Hashem said the National Program for the Development of the Automotive Industry (AIDP) is a cornerstone for attracting major global brands through a large incentive package aimed at localizing this vital industry, developing feeder industries. Building an integrated industrial base. The program offers investment incentives closely tied to reliance on local feeder industries, meaning benefits double for investors as local content and supply chain localization increase for both traditional and electric vehicles. He noted that recent months saw several global companies inject new investments in Egypt in tire manufacturing, EV batteries, and production lines. This direction strengthens Egypt's position as a regional hub for vehicle and component manufacturing.

Escalating Incentives to Boost Local Content in Vehicles

The national program links investment incentives to the level of reliance on local feeder industries, meaning benefits multiply as local content rises and supply chain localization deepens. This covers both conventional and electric vehicle manufacturing. Recent months have seen global companies inject fresh investments in Egypt in tire production, EV batteries. Their production lines, reflecting growing confidence in the Egyptian market and its capacity to absorb major industrial projects.

Targeting Small and Medium-Sized German Companies

Hashem explained that the ministry aims to attract more German companies to the Egyptian market, particularly small and medium-sized enterprises specializing in advanced technologies. This aligns with Egypt's efforts to diversify its industrial investor base and increase local content in the automotive sector. Germany is a key industrial partner for Egypt, with its companies possessing long expertise in vehicle and component manufacturing. Expanding investments from companies like Mercedes and Leoni in Egypt would create new jobs and transfer advanced technology to the local market.

Prospects for Egyptian-German Cooperation in the Automotive Sector

The latest meeting underscores the importance of Egyptian-German cooperation in the automotive sector, especially amid the global shift toward electric vehicles. Egypt possesses manufacturing and legislative fundamentals that make it an attractive destination for German companies seeking production sites near African and Middle Eastern markets. With ongoing infrastructure development and incentive offerings, Egypt appears to be steadily enhancing its position as a regional hub for vehicle and component manufacturing.