Egypt’s government has unveiled the full details of its restructured export rebate program for fiscal year 2025/2026, allocating EGP 45 billion in what officials describe as a landmark move to accelerate non-oil exports, enhance competitiveness, and integrate domestic industries into global value chains.
The announcement was made jointly by Investment and Foreign Trade Minister Hassan El-Khatib and Finance Minister Ahmed Kouchouk, who emphasized that the new scheme is the product of a comprehensive consultation process, incorporating feedback from 13 export councils, industry experts, and private sector stakeholders.
“This program represents a pivotal shift toward a performance-driven, inclusive, and transparent support system,” said Minister Kouchouk. “It reinforces our fiscal strategy and reaffirms our commitment to export-led growth.”
International Standards, Local Priorities
The redesigned rebate framework is modeled on international best practices and tailored to Egypt’s unique sectoral landscape. The government conducted economic modeling and technical assessments to identify priority sectors and align fund allocation with export potential, added value, and employment intensity.
Key sectors consulted include chemicals and fertilizers, agriculture, furniture, textiles, pharmaceuticals, food products, building materials, and engineering—reflecting a cross-section of Egypt’s industrial base.
Strategic Investment in Export Growth
The EGP 45 billion budget—nearly double the previous year’s allocation—will be divided as follows:
- EGP 38 billion in direct subsidies to targeted sectors
- EGP 7 billion in flexible funding to support high-impact products and attract foreign investment
Sectoral allocations are guided by a performance-based formula:
- 50% weight on added value
- 30% on export growth rates
- 10% on production capacity
- 10% on employment generation
This marks a strategic pivot toward value-added exports and global market expansion, with the flexible fund initially prioritizing engineering and chemicals, two sectors identified via economic complexity analysis.
Fast-Tracked, Inclusive, and Transparent
One of the program’s defining features is its streamlined disbursement mechanism. For the first time, all subsidy payments will be:
- Disbursed within 90 days
- Exempt from retroactive tax deductions
- Accessible to businesses of all sizes—from SMEs to large exporters
Eligibility standards have also been revised to include not only export volume but also participation in international trade fairs, strategic market access, branding, logistics efficiency, and sustainability metrics such as energy use and environmental compliance.
Building Investor Confidence
To resolve EGP 60 billion in outstanding export arrears from before July 2024, the Ministry of Finance announced a two-part settlement plan:
- EGP 30 billion to be paid in cash over four years
- EGP 30 billion to be settled via a clearing mechanism offsetting exporters’ dues with obligations to government entities including the Tax Authority, Customs, utility providers, and Social Insurance
This marks the first comprehensive approach to legacy arrears and is expected to boost liquidity, restore exporter confidence, and revitalize investment in export-oriented production.
Export Reforms & Economic Transformation
The rebate program forms part of a wider policy package aimed at transforming Egypt’s investment climate. Recent reforms include:
- A flexible exchange rate regime
- Targeted tax incentives
- Streamlined customs procedures
- Reduction of non-tax financial burdens
- Adoption of 29 policy measures to boost trade efficiency
These steps position Egypt to play a greater role in regional and global trade while reinforcing fiscal discipline and enabling the private sector to take the lead in economic growth.
A New Chapter in Export Policy
Between 2019 and 2024, Egypt disbursed EGP 70 billion in export support to over 2,800 companies. With this year’s allocations and the FY 2025/2026 strategy, the government is moving decisively toward a performance-based, transparent, and equitable support framework.
“This isn’t just a subsidy,” Kouchouk concluded. “It’s an investment in Egypt’s future as a competitive, export-driven economy.”
