Egypt introduces lease-to-own system for industrial land

The Egyptian Industrial Development Authority has introduced a new lease-to-own system for industrial land, aimed at reducing the financial burden on investors. The initiative involves 540 plots of land totaling approximately 5.7 million square meters, distributed across 20 industrial zones in 15 governorates.

Under this system, investors pay an annual rent equivalent to 5% of the land value, allowing them to redirect capital toward production lines, technology, and raw materials. To prevent land speculation, the program includes a 24-month implementation deadline, with mechanisms to reclaim land if construction and operation schedules are not met. All paid rent can be deducted from the total land value when the investor requests full ownership after the project is operational.

The Small and Medium Enterprises Investors Union has welcomed the move as a strategic step to support liquidity for smaller investors. However, the Union has called for government guarantees to ensure policy stability and prevent sudden legislative changes. They also requested a cap on annual rent increases—suggesting a limit below 10%—and a fairer valuation mechanism for land ownership to ensure investors are not penalized for the value they add through development.