Unlocking the Potential of Egypt’s Industrial Zones and Clusters Ecosystem
Egypt’s economy is powered by two dynamic types of business clusters: Industrial Zones and Organic Clusters.
- Industrial Zones are government-planned and span over 275 areas focused on furniture, food processing, apparel, and metalworks. Despite tax incentives, they often lack coordination and synergy.
- Over 145 Organic Clusters, on the other hand, emerge naturally, especially in textiles, agriculture, mining, and woodwork. Though largely informal, they show strong potential for collaboration and innovation.
Understanding and strengthening these clusters is key to unlocking inclusive economic growth.
What’s Holding Clusters Back?
Despite their contribution to the national economy, Egypt’s clusters face major obstacles: No legal recognition or institutional support, lack of operational guidelines and lack of targeted incentives or alignment with national strategies. Without a clear framework, clusters struggle to scale, attract investment, or contribute meaningfully to national development.
A Roadmap for Change
The EuroMed Clusters Forward project — funded by the European Union and led by ANIMA Investment Network, in collaboration with ICEAlex and Berytech outlines a bold roadmap to:
- Establish a formal legal and institutional framework
- Align clusters with Egypt’s economic priorities
- Boost access to finance and build local capacity
Why It Matters
By implementing these recommendations, Egypt can transform its clusters into engines of innovation, job creation, and export growth—benefiting both local communities and the national economy.
Explore the full report: Enabling the Clusters Regulatory Framework in Egypt – a blueprint for a more competitive, connected, and sustainable cluster ecosystem.
