Egypt - Minister of Industry Khaled Hashem has issued a new decision regulating the licensing framework for establishing, managing, and operating industrial activities outside officially designated industrial zones.

The decision, which will be published in the Egyptian Gazette and enters into force the day following publication, introduces a revised framework aimed at strengthening oversight while streamlining procedures for investors.

Under the new rules, the general prohibition on conducting industrial activities outside industrial zones remains in place. However, specific exceptions have been introduced, including a defined list of permitted activities within urban areas and built-up zones, as outlined in an attached annex.

The decision also allows certain industrial activities to be established outside urban boundaries where their nature necessitates such locations, subject to approval from the relevant administrative authority and compliance with requirements set by the Industrial Development Authority.

At the same time, the regulation prohibits the establishment or operation of specific industrial activities, listed in a separate annex, even within designated industrial zones.

Hashem said the updated framework expands the number of industrial activities permitted within urban areas from 17 to 65, particularly those that do not pose significant environmental risks. These activities may be set up in standalone buildings within approved urban boundaries and residential clusters.

The decision further stipulates that licences issued to existing industrial facilities prior to its implementation will remain valid. These facilities may also expand their operations or add new permitted activities within their premises, provided they comply with the applicable regulatory conditions.

In cases of non-compliance, licences may be revoked, with the provisions of the new framework applied accordingly.

The regulation also cancels Ministerial Decree No. 16 of 2025, along with any provisions that contradict the new rules.

The Industrial Development Authority will be responsible for issuing detailed executive procedures and requirements for implementation. It will also periodically review the annexed lists of permitted and restricted activities and submit proposed updates to the Minister of Industry.

The move is expected to enhance regulatory clarity, streamline licensing procedures, and broaden investment opportunities for industrial operators across Egypt.

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