"Ministers’ information" It provides an analytical vision on the role of industrial zones in achieving sustainable development
The Information and Decision Support Center of the Council of Ministers issued the twelfth issue of its periodical magazine “Industrial Horizons” Under the title “Industrial zones and their role in promoting development,” he pointed out that industrial zones constitute an effective strategic tool for achieving economic and social development in Egypt, with the integrated production and logistical platforms they represent, capable of localizing industries, attracting investments, creating sustainable job opportunities, and enhancing the competitiveness of national industries. In light of the state’s move towards building a more diversified and sustainable economy, the importance of developing these areas has emerged. The zones are considered a national priority supported by a clear vision and ambitious implementation plans in line with the goals of Egypt’s Vision 2030, and the national strategies for industry, exports, and small and medium enterprise development.
The issue highlighted various dimensions related to the role of industrial zones in driving growth, through a group of articles and analyzes that address local and international experiences, And field assessments of the existing reality, as well as a review of promising opportunities and existing challenges. The issue also addressed in particular the importance of industrial zones in attracting foreign direct investment by providing an attractive investment environment supported by incentives, facilities and advanced infrastructure, which makes it a major tool in promoting sustainable development and improving the quality of life in the surrounding communities.
The center presented an in-depth analytical vision on the role of industrial zones in achieving balanced and sustainable development, and made an explicit call for the need to enhance integration between public policies and private initiatives to accelerate the pace of industrial development and achieve a real shift towards a flexible and comprehensive productive economy. The issue also highlighted the growing role of specialized industrial zones, especially in the fields Advanced technology, such as the semiconductor industry, is considered a necessary pillar for achieving digital sovereignty and comprehensive economic renaissance.
The center explained that special economic zones differ from industrial zones in terms of purpose, scope, and privileges. Special economic zones are established to attract local and foreign investments and are characterized by exceptional incentives such as tax facilities and regulatory procedures. Simplified, industrial zones focus mainly on grouping industries in designated locations to provide appropriate infrastructure and reduce production costs without necessarily enjoying the same privileges or diversity of activities.
Among the opinion articles reviewed in the issue is an article entitled “The Role of Industrial Zones in Attracting Foreign Direct Investment and Achieving Development.” Sustainable" By Professor Dr. Saad Ibrahim Al-Kalawi, Professor of Economics at the College of Business Administration, King Faisal University, where the article shed light on the most prominent achievements of the Egyptian state in the industrial sector since July 2014, including:
1- The Ministry of Industry established about 17 industrial complexes in about 15 governorates across the Republic at a total investment cost of about 10 billion pounds, with a total number of units scheduled to reach 5046 units, providing about 48 thousand direct job opportunities.
2- The construction and allocation of a number of industrial complexes has been completed, and the factories have actually begun work in them, which is the industrial complex in Sadat City in Menoufia with a total of 296 units of different areas, and the industrial complex in Port Said Governorate (south of Al-Ruswa) with a total number of units estimated at about 118 units of different areas. And the industrial complex in Badr City in Cairo, with a total number of units estimated at about 87 units of different sizes, targeting productive activities in the food, engineering, and chemical industries.
3- In continuation of the plan to establish industrial complexes, the Ministry in 2020 launched 7 complexes in the governorates of Alexandria, the Red Sea, Gharbia, Beni Suef, Minya, Sohag, and Luxor, and in In 2022, the launch of 5 industrial complexes was completed, namely: (Qena – Arab Al-Awamer – El-Geneina and El-Shebbak, Aswan, the Fayoum Metal Complex, and the Fayoum Concrete Complex), and in 2024, the launch of an industrial complex, Housh Issa El-Beheira, was completed.
4- A group of major industrial projects have been implemented in recent years, including the establishment and development of cities. An industrial city specializing in a number of production sectors, including a specialized city for the leather industry and a city for furniture in Damietta Governorate, and a city for the pharmaceutical industry in the Khanka region, in addition to a city for marble industries in the Galala region. The first phase of the textile industries complex was also opened, in addition to the launch of an integrated project for food industries in Sadat City, in addition to the establishment of new industrial zones under the industrial developer system in a number of cities, including Sadat City. And the 10th of Ramadan, which contributes to strengthening the industrial infrastructure, supporting productive activities and providing various job opportunities.
5- Establishing 100 factories for the leather industry and feeding industries in the third phase in the Leather City in Rubiki, provided that it is an integrated area that includes an exhibition ground, an administrative building, a technology center, a training center, commercial shops and warehouses. And workshops.
The article explained in its conclusion that there is an important role for industrial zones in attracting foreign direct investment and sustainable development. Industrial zones work to attract investments, localize industries, and provide job opportunities, which contribute to achieving sustainable economic growth. Industrial zones are also considered a major engine for providing job opportunities, whether directly in factories or indirectly in support services. They encourage the use of modern technology and the adoption of innovation in industrial processes, which enhances competitiveness, advances the wheel of development, achieves optimal exploitation of resources, reduces waste, and recycles waste. It contributes to preserving the environment and achieving integration with local communities by providing job opportunities for their children, developing infrastructure, and improving the standard of living.
In light of the above, the article recommended the following: (1- Strengthening the private sector’s participation in industrial development, 2- Localizing and deepening the manufacturing of raw materials and supplies for promising priority sectors, while designing incentives according to priorities. And the goals: 3- Paying attention to training and raising the efficiency of human resources to keep pace with technological development in industry and the labor market, 4- Establishing incentives for investors to achieve specific goals, according to the national priority matrix). Industrial and semiconductor industry in Egypt: Towards a comprehensive technological and economic renaissance.” It is proposed to establish an industrial zone specializing in semiconductors in a strategic location such as the Suez Canal Economic Zone or Burj Al Arab, so that this zone includes nano-laboratories, research and development centers, business incubators, and integrated logistical services, while linking it to modern ports and airports. Partnerships between the industrial zone should be strengthened. And universities through joint training programs, supporting applied research, encouraging patents, providing scholarships for distinguished students in the fields of microelectronics, and also encouraging emerging companies in the fields of integrated circuit design, embedded software, and artificial intelligence applications, by providing seed funding, joint work spaces, guidance and guidance programs, in addition to providing tax exemptions and financial support for research and development, and facilities in… Licensing and programs to support the export of electronic products to attract international and regional companies.
The article also explained that the importance of the semiconductor industry is not limited to economic aspects only, but extends to include social and humanitarian dimensions, as an industry capable of creating thousands of quality jobs for young people, raising the level of income, stimulating innovation, and enhancing the position of women in the labor market, especially in the fields of research. And the localization of this industry reduces dependence on the outside, enhances technological security, and opens new horizons for entrepreneurs and emerging companies.
The article presented a set of recommendations so that Egypt can achieve a qualitative leap in the digital economy and become a regional and international player in the semiconductor industry, which will reflect positively on growth. economic, creating quality job opportunities and enhancing national technological sovereignty, which were represented in: (1- Strengthening the partnership between the government, the private sector and universities to develop the innovation system, 2- Developing advanced educational and training programs in the fields of microelectronics, 3- Providing investment and legislative incentives to attract international companies, 4- Supporting emerging companies and business incubators in the field of electronic chips, 5- Investing in research and development, and simplifying procedures, and facilitating technology transfer).
The issue included an article by Dr. Taghreed Badr El-Din Mohamed, assistant lecturer at the Faculty of Politics and Economics, Beni Suef University, which came under the title “The Role of Specialized Industrial Zones in Promoting Economic Growth in Egypt.” Where specialized industrial zones have emerged as a vital tool for promoting economic growth and economic development in Egypt, as they lead A pivotal role in stimulating industrial development, increasing productivity, and attracting foreign direct investment. These zones were specifically designed to create a conducive environment for industrial activity by providing a set of incentives, including tax exemptions, simplifying customs procedures, and providing a strong and efficient infrastructure.
She pointed out that the specialized industrial zones They are established with the aim of raising the efficiency of industrial activity and attracting investments through clear regulatory frameworks. These zones serve as platforms for organizing industrial operations, developing economic structures, and supporting development at the regional level. Private industrial zones are often established by government decisions seeking to stimulate the local economy and facilitate attracting foreign investment.
The zones are spread out. Industrial areas in Egypt are located in most governorates and include many types of areas, including traditional areas that focus on industries such as chemicals and food industries, and specialized areas that rely on advanced industrial chains such as electronics and modern infrastructure. These areas also vary geographically, as there are areas concerned with car assembly in 6th of October City, and others concerned with marine and oil industries near the Suez Canal, in addition to areas focusing on agricultural and small industries in Upper Egypt governorates.
These areas accommodate a wide range of industries, starting from the food, engineering, and chemical industries, through the building materials, spinning, and textile industries, all the way to the technological and new energy industries. The state has been keen to provide basic infrastructure within these areas, including roads, electricity, water, and industrial sewage, in addition to providing multiple incentives and facilitating measures to attract local investors. and foreigners, and this strategic deployment reflects the government’s desire to achieve balanced development, reduce industrial concentration in the capital, and provide sustainable job opportunities in the various regions.
The article explained in its conclusion that the specialized industrial zones represent a multi-functional development lever in the Egyptian context, as they are not limited to being only production units, but rather work as spaces. A strategy to generate jobs, attract investment, support technological progress, and achieve sustainable development. Despite the expansion achieved in the establishment of private industrial zones and their geographical and sectoral diversity, maximizing their impact on Egyptian economic growth remains dependent on a set of strategic measures, foremost of which is the necessity of developing the model of leased industrial zones – industrial zones that investors are allowed to use in exchange for rent, instead of obliging them to buy land or land. Creating infrastructure from scratch – because it has a direct impact on reducing entry costs for investors, especially small producers and local investors, which enhances the dynamism of the industrial sector and reduces barriers to innovation.
Enhancing integration between industrial zones and the national infrastructure of ports and highways is also a prerequisite for improving the efficiency of distribution and export. And linking production centers to local and global markets. In addition, activating the partnership between the public and private sectors in managing and operating these areas represents an opportunity to raise administrative efficiency and ensure the sustainability of technological and financial development in them. It is also important to link these areas to plans for technical education and vocational training in a way that allows for the qualification of human resources and the provision of trained workers in line with manufacturing requirements. Through the magazine, the Information and Decision Support Center reviewed some international experiences about industrial zones and their role in promoting development in the countries of China, Singapore, the Emirates, and Finland. The magazine also reviewed a number of research presentations by a group of researchers about African industrial zones and their role as a pillar of industrial transformation and promoting economic development in the countries of the continent and regions. The private economy and its role as a driver of sustainable industrial transformation. The magazine also presented the most prominent articles in foreign newspapers and magazines about industrial zones and their role in promoting development.
