Egypt Golden License Boosts Automotive Manufacturing Investment

Egypt Golden License approvals continued to position the country as a competitive automotive manufacturing hub, as the Egyptian Cabinet cleared a strategic license for MAC for Light Transport Manufacturing LLC. The approval supports the establishment of a fully integrated automotive manufacturing facility covering vehicle assembly and key component production, strengthening Egypt’s industrial base and export ambitions.
Egypt Golden License supports large-scale vehicle production
Under the Egypt Golden License, the approved project enables the production and assembly of a wide range of vehicles, including passenger cars, buses, and mid-sized buses with capacities of up to 25 seats, alongside larger buses accommodating up to 50 passengers.

• The facility is also planned to manufacture critical automotive components, supporting localization and supply chain development.

The project timeline targets completion by early 2027, aligning with Egypt’s broader push to attract foreign and domestic manufacturing investments while reducing reliance on vehicle imports.
Strategic location strengthens logistics and exports
The manufacturing complex will be developed on a 30-acre site adjacent to the Sixth of October Dry Port, located within the industrial and logistics zone of New October City in the Giza Governorate.

• This location offers direct access to logistics infrastructure, reducing transportation costs and improving export efficiency for finished vehicles and components.

By leveraging proximity to the dry port, the project is expected to enhance outbound shipments and support the company’s export-oriented strategy under the Egypt Golden License framework.
Investment scale, employment, and production targets
The total investment for the project stands at EGP 6.3 billion, reflecting strong confidence in Egypt’s automotive growth potential.

• Once operational, the facility is expected to generate around 1,000 direct jobs, contributing to skilled employment and industrial capability development.

Production plans include manufacturing approximately 50,000 vehicles over a five-year period. At least 50 percent of total output is earmarked for export markets, reinforcing Egypt’s role as a regional automotive production and export base.
Local component integration as a core objective
A key pillar of the project is localization. The targeted local component rate will begin at 42 percent, with scope for gradual increases as supplier ecosystems mature.

• By producing automotive components alongside vehicle assembly, the project supports domestic suppliers and enhances value addition within the country.

This localization-driven approach under the Egypt Golden License aligns with national objectives to strengthen manufacturing resilience, improve trade balances, and develop a sustainable automotive ecosystem capable of long-term growth.