The Industrial Development Authority (IDA) has launched its first offering of industrial land under a rent-to-own system, comprising 540 plots with a combined area exceeding 5.7 million square meters across 20 industrial zones in 15 governorates. The offering is part of the government’s efforts to introduce more flexible mechanisms for allocating industrial land and support investors.
IDA Chairperson Nahed Youssef said applications for the new offering will be submitted entirely online through the Egypt Industrial Digital Platform from Aug. 15 to 31. Applications will be reviewed and decisions announced within 15 days of the application deadline, helping accelerate the allocation process.
Youssef said the rent-to-own system was introduced in line with directives from Industry Minister Khaled Hashem to develop innovative mechanisms to support investors and improve the industrial investment climate. She added that the available plots vary in size to accommodate projects ranging from small and medium-sized enterprises to large-scale investments, with priority given to key sectors including pharmaceuticals and biotechnology, engineering industries, automotive manufacturing and components, electronics and precision equipment, chemicals, building materials, food processing, textiles and ready-made garments.
The offering aims to channel investment toward priority sectors, enhance the economic viability and sustainability of industrial projects, deepen local manufacturing and boost Egyptian exports. Under the rent-to-own system, lease terms may extend for up to 21 years, with annual rent set at 5% of the land’s per-square-meter price, subject to a 10% annual increase.
The rental value will be reviewed every seven years in accordance with applicable regulations. Investors may apply to purchase the land after demonstrating the seriousness of their investment by commencing actual operations and obtaining the required operating license and industrial registration.
Upon purchase, all previously paid rent will be deducted from the total land value based on the approved price at the time of submitting the purchase application. The investor will then pay 25% of the remaining amount, with the balance payable in three annual installments subject to applicable interest rates.
Youssef said the system is designed to ease investors’ initial financial burden by eliminating the need to pay the full land value upfront, allowing them to direct more capital toward factory construction, machinery and equipment, production lines and other operational requirements.
She noted that the rent-to-own system complements the existing industrial land allocation mechanisms, including ownership and usufruct rights, which are periodically offered through the Egypt Industrial Digital Platform.