New Industrial Investment Amendments in Egypt: Operating Condition Scrapped and Relief for Stalled Projects

Decisive moves came today. Egypt's Minister of Industry, Khaled Hashem, issued Decree No. 171 of 2026, introducing substantive amendments to Decree No. 107 of 2026. These changes abolish several restrictions on dealing with industrial land, and offer new facilities for stalled projects based on actual execution rates, giving investors the flexibility they need to restructure their ventures within industrial zones.

Three-Year Operating Condition Removed

The most notable change is the cancellation of the three-year actual operation requirement before any disposal of industrial land is allowed. The one-year waiting period for leasing has also been scrapped, removing an obstacle that previously hampered investment restructuring.

Under the new rules, investors can dispose of or lease land once they meet several conditions: paying the full land value and all financial dues, obtaining an operating license and industrial registry, starting actual project operations, and paying the standard costs set by the authority.

Observers believe this move grants investors greater flexibility in restructuring their holdings, which should improve how industrial land is used and accelerate capital turnover within the sector.

New Relief Measures for Delayed Projects

The decree also reorganizes the grace periods given to incomplete industrial projects, tying them directly to the percentage of physical completion for each project. The breakdown is as follows:

Projects surpassing 75% completion receive up to 6 months, with a full waiver of all delay fines to finish and launch operations.

Projects between 50% and 75% completion are allowed up to 12 months, but fines are waived only for the first 6 months.

Projects below 50% completion, or those where construction never started, get up to 18 months, again with fine waivers limited to the first 6 months.

Projects previously granted extensions that failed to show seriousness get one final 3-month ultimatum — after that, the land is withdrawn and allocation canceled if compliance continues to be absent.

Temporary Suspension of Prior Rules

The amendments follow the ministry's recent decision to temporarily suspend parts of Decree No. 107 of 2026, effective from mid-August through end of December this year. This suspension period supports a broader review of the regulations governing industrial land transactions, ensuring a balance between investor flexibility and the seriousness of project execution.