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Arab Finance: The Egyptian cabinet has approved granting the golden license to MAC for Mobility Manufacturing for a project to establish and operate an integrated factory for the production and assembly of cars, passenger vehicles, buses, and transport vehicles, as per a statement issued on December 17th.
The project will be implemented on around 30 feddans adjacent to the 6th of October Dry Port in the industrial and logistics zone of New October City.
The project includes factories for producing and assembling passenger cars, light and medium transport vehicles, microbuses and midbuses with capacities of up to 25 seats, and buses with capacities of up to 50 seats.
It also covers the production and assembly of vehicle components and spare parts, including tires and interior entertainment systems, in addition to an integrated modern painting facility and all complementary activities.
With an estimated investment cost of EGP 6.3 billion, the project aims to deepen and localize the automotive industry, meet domestic demand, boost exports, and support the shift toward electric vehicles through environmentally friendly manufacturing technologies.
The project is expected to create around 1,000 jobs and export at least 50% of its output.
Scheduled for completion by early 2027, it targets the production of 50,000 vehicles over five years, with a local component starting at 42%, contributing to reduced import rates.
Also, the cabinet approved granting the golden license to Deli to establish and operate a factory producing office supplies, school supplies, children’s sports equipment, and related products.
The factory will be located on approximately 160,000 square meters in the industrial zone southwest of the 10th of Ramadan City in Sharqia Governorate.
This marks the first investment in Egypt by Deli, a global group with more than 44 years of experience, 10 regional centers, and 54 branches worldwide.
The group operates multiple international e-commerce platforms and manages 10 independent brands across 24 product categories.
The project, with an investment of about EGP 8.8 billion, is expected to create roughly 2,200 jobs, rely on local suppliers for more than 50% of production, and export at least half of its output.
Completion is expected by mid-February 2027.
In the energy sector, the cabinet approved a draft law for a petroleum exploration, development, and exploitation agreement in the Badr El-Din area in the Western Desert.
The agreement, involving the Egyptian General Petroleum Corporation (EGPC), Cheiron, and Capricorn Egypt Limited, includes a minimum investment of about $208 million and the drilling of around 44 wells.
The project targets monthly production of approximately 105,000 barrels of oil and 1.2 billion cubic feet of gas, with expected savings on the import bill of about $25 million per month within six to 12 months of signing.
Furthermore, the cabinet also approved a draft presidential decree for a $10 million grant agreement between Egypt and the Abu Dhabi Fund for Development to implement development projects in Nag'a al-Asirat village in Sohag.
The projects aim to improve social, educational, economic, and environmental conditions and include renovating mosques, restoring an Al-Azhar school, establishing primary and preparatory schools, creating community classrooms, building a children’s park, and implementing community market projects.
Another approved draft presidential decree covers a $4.3 million grant agreement with South Korea to establish green energy infrastructure in the Suez Canal.
The project supports the canal’s green transformation by developing liquefied natural gas refueling infrastructure, establishing an LNG training center, and integrating the Suez Canal Authority’s (SCA) low-carbon development strategy, with the goal of making the canal a sustainable waterway by 2030.
In addition, the cabinet further approved a draft presidential decree for Egypt’s accession to the preferential trade arrangements (PTAs) among the eight developing countries and its dispute settlement protocol.
The agreement aims to strengthen economic relations among member states by increasing intra-regional trade, with expected positive impacts on Egypt’s trade ties with participating countries.
