Egypt will nearly double the budget for its export rebate programme to 45 billion Egyptian pounds in the 2025/2026 fiscal year, aiming to boost competitiveness and tailor support to the needs of individual sectors, the investment and finance ministries said on Tuesday. The revised scheme follows months of consultations with Egypt's 13 export councils and major industrial chambers and is designed to align with global best practices. The move marks a significant shift toward a more flexible and targeted support model, said Investment and Foreign Trade Minister Hassan El-Khatib. "We are introducing a results-oriented, sector-specific approach that reflects the diverse priorities of each industry," Minister El-Khatib said. Finance Minister Ahmed Kouchouk said the programme is part of a broader government strategy to anchor exports as a key driver of economic growth and fiscal resilience. New Model Prioritises Value-Added, Growth and Jobs Of the total 45 billion pounds, 38 billion pounds will be allocated based on a new economic model, while 7 billion pounds will be reserved for high-potential products, infrastructure upgrades, and incentives tied to product complexity—initially focusing on the engineering and chemical sectors. The distribution model applies four weighted criteria: value-added (50 per cent), export growth (30 per cent), production capacity (10 per cent), and employment levels (10 per cent). Additional factors include shipping costs, branding, trade fair participation, new market access, geographic diversification, and adherence to environmental and energy standards. Sectors will be able to adjust the weightings to better reflect their specific growth priorities. Faster Payouts, Settlement of Legacy Dues Minister Kouchouk also announced a payment plan for 60 billion pounds in outstanding rebates for shipments made before July 2024. Half will be paid in cash over four years, while the remainder will be cleared through a set-off mechanism against obligations to Egypt's Tax Authority (ETA), Customs Authority, energy companies, and social insurance funds. For the current fiscal year (2024/2025), the government retained a 23 billion pound allocation for rebates, which is now being disbursed within 90 days—marking the first time payments are made without deductions for outstanding tax debts. Part of Broader Reform Agenda Officials said the programme complements broader structural reforms including a flexible exchange rate, simplified customs procedures, and tax policy improvements. Minister Kouchouk noted that from 2019 to 2024, Egypt disbursed 70 billion pounds in export incentives to more than 2,800 exporters. "The goal is to provide fast, transparent, and efficient support that promotes innovation, diversification, and sustainable export growth," he added. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
