What Foreign Investors Should Know Before Setting Up a Factory in Egypt

Start with the investment model

Separate the proposed product, target customers, expected output, export intent and manufacturing steps. Establish which activities will be performed in Egypt and which parts will be imported or outsourced.

Verify the official pathway

Confirm current requirements directly with GAFI, the Industrial Development Authority and any relevant industrial-zone authority. Incorporation, land allocation, industrial licensing and environmental conditions are distinct questions; do not assume an incentive or permit applies automatically.

Build a factory-ready technical brief

Document drawings, materials, volumes, tolerances, utilities, labor skills, installation sequence, maintenance, acceptance tests and spare-parts strategy. Request technical proposals against the same scope.

Investment risks and due diligence

Test exchange-rate exposure, customs classification, shipping lead times, local service capability, working capital, supply continuity, safety and realistic ramp-up. Validate all figures with dated quotations and qualified advisers.

FAQs and next step

Can a foreign investor start with machinery purchase? It is safer to establish the activity, site feasibility and approvals first. Does a published incentive automatically apply? No; eligibility and conditions require official confirmation.