Egypt’s IDA streamlines rules for changing, expanding industrial activities

“Egypt’s Industrial Development Authority (IDA) has introduced a new set of streamlined regulations allowing manufacturers to change or add industrial activities within approved industrial zones, in a move aimed at reducing administrative burdens and accelerating licensing procedures. Under the updated framework, factories can change their activity within the same industrial sector without the need for prior environmental approvals or referral to activity-change committees. The decision covers several key sectors, including engineering, food industries (excluding organic fertilisers and animal feed), leather, textiles, and chemicals. The authority clarified that high-risk activities will continue to require prior approvals, as will projects falling under priority initiatives, such as the state’s subsidised financing programme for machinery and equipment. In parallel, the IDA has simplified procedures for adding new activities to existing facilities. Investors are now only required to submit a request for a technical amendment to their operating licence through the authority or its regional branches, provided the new activity falls within the same industrial sector. The revised process removes the need for lengthy environmental approvals or additional studies, as long as the expansion does not significantly increase operational risks or exceed a 25% rise in the facility’s approved power capacity. Previously, such modifications required multiple approvals and technical assessments, often causing delays. The new framework is expected to significantly reduce processing times and improve the ease of doing business for manufacturers. IDA Chairperson Nahed Youssef said the measures align with directives from Industry Minister Khaled Hashem to ease investor burdens and enhance operational flexibility across industrial facilities. She added that the reforms are designed to enable factories to expand, integrate activities, and increase production capacity, supporting Egypt’s broader industrial development strategy. “The new regulations strike a balance between simplifying procedures and maintaining environmental compliance and occupational safety standards,” Youssef said. Under the updated rules, environmental approval will only be required if a facility increases its power capacity by more than 25% beyond its licensed limit, or if it seeks to introduce an activity outside its original industrial sector. The IDA emphasised that the changes will give existing factories greater flexibility to upgrade operations and scale production without unnecessary delays, contributing to deeper local manufacturing and enhancing the competitiveness of Egypt’s industrial sector. The post Egypt’s IDA streamlines rules for changing, expanding industrial activities first appeared on Dailynewsegypt .

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