Egypt has approved more than US$1.29 billion in new industrial investments, including large-scale chemical and tyre manufacturing projects in the Suez Canal Economic Zone (SCZone), as the government steps up efforts to boost domestic production and non-oil exports.
The approvals were granted by the Ministerial Group for Industrial Development during its 37th meeting on Tuesday, according to a statement from the Ministry of Trade and Industry. The session was chaired by Deputy Prime Minister and Minister of Industry and Transport Kamel al-Wazir.
Officials said the two manufacturing projects will be developed under the SCZone framework, which has emerged as a central pillar of Egypt’s industrial and export-led growth strategy.
The largest project involves a US$1 billion chemical manufacturing complex that will produce pesticides, chlorine-based products and alkalis. The facility will be built on a site covering about 320,000 square metres, the ministry said.
Chemical products and fertilisers are among Egypt’s most important non-oil exports. Government data shows exports from the sector rose 8 percent year-on-year to US$8.6 billion in the first 11 months of 2025, as the country’s non-oil private sector showed signs of sustained recovery.
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The cabinet has urged state export councils to draw up plans to increase non-oil exports by between 15 percent and 20 percent annually through to 2030, part of broader efforts to reduce reliance on energy revenues and foreign borrowing.
The second project approved on Tuesday is a tyre manufacturing plant with planned investments of $291 million. The facility will be developed on a 380,000-square-metre site within the SCZone. Authorities did not disclose production capacity details or timelines for either project.
The SCZone, which stretches along the Suez Canal, has attracted roughly $13 billion in foreign investment over the past three years, according to official figures. It has become a magnet for multinational manufacturers seeking access to Middle Eastern, African and European markets.
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In recent weeks, Egypt has signed a series of industrial agreements with Norwegian, Chinese and Qatari companies for projects in the zone, with combined investments exceeding US$3.15 billion. Officials say the concentration of logistics infrastructure, ports and incentives has helped position the SCZone as a regional manufacturing hub.
Beyond the SCZone projects, the Ministerial Group for Industrial Development also issued three licences for the construction of new cement plants. Each licence allows for the establishment of a single production line, with provisions for future expansion at several existing plants.
The ministry did not disclose the locations of the new cement factories, but said they are expected to be completed within one year from the start of production. The approvals come as Egypt seeks to balance supply and demand in a sector that has faced periods of overcapacity and price pressure in recent years.
Authorities said the new cement capacity is intended to meet domestic market needs and prepare for potential increases in demand linked to large-scale reconstruction projects. Egyptian officials have previously said they expect rising cement consumption as part of regional rebuilding efforts, including plans related to the reconstruction of the Gaza Strip.
Egypt has been pursuing an industrial policy aimed at increasing local value addition, reducing imports and strengthening foreign currency inflows through exports. The strategy includes incentives for manufacturers, expanded industrial zones and efforts to improve access to financing for priority sectors.
Economic reforms supported by international lenders have pushed the government to focus on private-sector-led growth, while state-led investments continue in infrastructure and logistics. Analysts say industrial zones such as the SCZone are likely to play a key role in that transition, particularly as Egypt seeks to leverage its geographic position and trade agreements.
While officials highlight rising investment commitments, challenges remain, including foreign currency shortages, high financing costs and regional instability. Still, the government says new manufacturing projects will support job creation, export growth and long-term industrial resilience.
The latest approvals underscore Cairo’s push to position Egypt as a competitive manufacturing base at a time when global supply chains are being reshaped and investors are seeking alternatives across emerging markets.
