Egypt’s Ambitious 2025/26 Industrial Expansion Plan: What Investors Should Know

Egypt’s FY 2025/26 plan puts industry at the center of growth, with a concrete investment target and policy moves designed to speed land access, localize production, and expand export capacity. 

1) Clear investment target for manufacturing

The government is targeting EGP 252.8 billion of investments in manufacturing during FY 2025/26, a ~154% year-on-year increase, of which >83% is expected from the private sector.

2) Four new public free zones coming online by end-2026

Authorities plan to establish four new public free zones in 10th of Ramadan, New October, New Borg El-Arab, and New Alamein, expanding capacity beyond the nine existing public free zones. Timelines communicated by officials point to operations by end-2026. 

3) Industrial localization is being widened to priority sectors

Egypt is expanding its industrial localization drive, identifying high-priority sectors (e.g., renewable-energy components, automotive, green hydrogen inputs, software/robotics) to deepen local supply chains and substitute imports where feasible. 

4) Land allocation and pricing reforms are underway

A 2025 ministerial decree (No. 36/2025) introduced a standardized framework for industrial land disposal, ownership, and usufruct, aiming to improve transparency and speed allocation across governorates and new urban communities. The Industrial Development Authority (IDA) continues to lead on land policy and licensing facilitation. 

5) Macro backdrop: budget and growth context

The FY 2025/26 state budget, approved March 26, 2025, supports production and exports within broader fiscal targets under Egypt’s IMF-backed reform program. Separately, Egypt’s real GDP grew ~4.5% in 2024/25, with manufacturing cited as a contributor, and rating agencies have recently acknowledged reform progress.

6) Ongoing activation of zones and projects

Recent months have seen new projects inaugurated (e.g., Qantara West Industrial Zone) as part of the broader activation push—useful indicators of on-the-ground momentum while the new free zones progress toward 2026.

Polaris Parks’ perspective

For investors seeking ready land for industrial development, reliable utilities, and cluster advantages near major corridors, private industrial communities like Polaris Parks are positioned to help manufacturers capture these policy-driven opportunities, especially where localization and export readiness are decisive to ROI.