Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, convened a detailed meeting with Hassan El-Khatib, Minister of Investment and Foreign Trade, to discuss proposed amendments to the criteria for approving the establishment of new private free zones. The meeting also included Hossam Heiba, Chairperson of the General Authority for Investment and Free Zones (GAFI), and senior officials from the ministries of industry and investment. The meeting reviewed the key criteria for approving private free zone projects, including the type of activities to be targeted, geographic location, job creation, export potential, foreign financing sources, as well as factors like the technology used, project size, capital, investment costs, and reliance on local resources. A weighted ratio was agreed upon for each of these criteria, with projects scoring 70 points or more eligible for approval. Projects that do not meet this threshold will be directed to other investment systems. Al-Wazir emphasized the Ministry's commitment to expanding Egypt's free investment zones, which have garnered increasing interest from investors. He highlighted the necessity of revising certain requirements to better align with the goal of attracting major industrial projects. Among the proposed changes are increasing the local component percentage in new projects and raising the investment cost to ensure the focus remains on priority industries that are vital for Egypt's market. The Minister outlined that 23 key industries have been identified to encourage rapid localization in the Egyptian market, reduce import dependency, and support domestic production. He suggested that these industries should be prioritized for inclusion in either the public or private free zone system. Al-Wazir also noted that the list of promising industries might be updated periodically to reflect evolving economic needs and opportunities. Furthermore, he stressed the importance of determining the required electrical capacity for industrial units in free zones and ensuring that investors are fully aware of these requirements before committing to projects. Finally, the Minister directed GAFI to coordinate with the National Accreditation Council to ensure proper accreditation of offices responsible for evaluating technical aspects and documentation for licenses within the investment zones.
