Egypt’s free zones recorded strong growth in 2025, with 152 new projects established, bringing the total number of ventures operating in these zones to 1,243, according to government data.
The figures, highlighted by the Egyptian Cabinet, underscore the growing importance of free zones as a pillar of the country’s investment and trade strategy, helping to attract both domestic and foreign investors.
Egypt currently has 231 public and private free zones either operational or under development, operating under special fiscal, customs and monetary frameworks while remaining under state oversight. Authorities say these zones provide a flexible and business-friendly environment that supports industrial production, logistics and international trade.
International institutions have also pointed to their significance. The Organisation for Economic Co-operation and Development has identified Egypt’s free zones as a key driver of foreign direct investment, while the United Nations Conference on Trade and Development reported earlier this year that Egypt ranked first in Africa for FDI inflows for the fourth consecutive year.
Officials attribute this performance to a combination of tax incentives, streamlined administrative procedures and improved investment facilitation measures, including electronic company registration services provided by the General Authority for Investment and Free Zones.
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Free zone projects benefit from wide-ranging incentives, including exemptions from customs duties and taxes on capital goods, production inputs, imports and exports, as well as value-added tax exemptions on domestic inputs and transit goods. Legal protections also safeguard investors against expropriation or administrative seizure except through judicial processes.
According to the data, invested capital in public free zones rose by 30.3% to $14.2 billion in 2025, including $2.8 billion in foreign direct investment. Total investment costs increased by 66.5% to $38.3 billion, while exports more than doubled to $9.3 billion, accounting for nearly 20% of Egypt’s total exports.
Employment in free zones has also expanded, with more than 248,000 workers now engaged in projects nationwide, reflecting the sector’s contribution to job creation and industrial growth.
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Several major industrial players are driving activity within the zones. Leoni Egypt produces approximately 45,000 automotive cables daily across multiple sites, employing around 6,000 workers. Gid Textile operates five factories with more than $250 million in investments and 300 production lines, while Yazaki Egypt exports 100% of its production from a private free zone, supported by investments of about €30 million.
Analysts say Egypt’s strategic location—linking Africa, Europe and the Middle East—combined with investor-friendly policies, continues to make its free zones attractive for manufacturing and export-oriented industries.
Credit rating agency Fitch Ratings has also highlighted the advantages of these zones, citing tax exemptions, simplified procedures and unrestricted trade flows as key factors drawing investor interest.
The government says the strong performance of free zones reflects broader efforts to improve the business environment, accelerate industrialisation and expand export capacity.
As Egypt seeks to position itself as a regional hub for trade and logistics, authorities are expected to continue expanding free zone infrastructure and enhancing incentives to sustain investment inflows and economic growth.
