Golden Triangle Project: Establishing Industry in Safaga

Among the most important economic activities in the Red Sea Governorate is mining and industrial activity, with available raw material including metallic and non-metallic materials, building materials, cement manufacturing, iron, phosphate, gold, ornamental stones, and feldspar as well as raw materials for energy and renewable energy.

An important sector in the governorate fish canning and fish oils industry, and the city of Hurghada is distinguished by the manufacture of refractory and sand bricks, hotel equipment and furniture, and ready-made clothing. Safaga is also home to phosphate purification, granite polishing, and chemical industries, wood and paper industry.

The cities of Marsa Alam and Qusayr are known for mining-related industries, while the city of Ras Gharib is home to the manufacture of paints, crystal, glass, marble, and granite, in addition to chemical industries.

The real growth rate of the governorate reached about 4.9%, and it contributes about 1.17% of the country’s GDP.

This opportunity is located in the Golden Triangle area and has a usufruct right for a period of 50 years. A company is established in accordance with the law of the Golden Triangle Economic Zone to draw up a detailed plan for the establishment of the Safaga Industrial Zone and related activities in accordance with the development company’s plan.

Financial incentives for the Golden Triangle Economic Zone:

• 0% customs tax: All materials and tools required for the project (construction to operation) are imported. In the case of exporting to the local market, customs tax is paid on foreign components only.
• 0% VAT: It is applied within the economic zone, when importing from the local market or from abroad, into the zone. This includes all purchasing needs for manufacturing, production and operation of raw materials, components, spare parts, etc. 
• 14% VAT: It is applied to products exported from the economic zone to the local market.
• Investment incentives on income tax: Investment projects are granted an investment incentive as a deduction from the net taxable profits at a rate of 50% of the total investment costs. So the investment incentive does not exceed 80% of the paid-up capital and the discount period does not exceed seven years from the date of carrying out the activity.

The Golden Triangle Economic Zone offers a unique value proposition to investors to maximize profits and qualifies them to benefit from the free trade agreements signed by Egypt, including GAFTA, COMESA, Agadir, European Association Agreement, Mercosur, and the African Continental Free Trade Agreement.
For more investment incentives for the Golden Triangle region, please see the link: Investment incentives of the Golden Triangle.pdf

Project Location:

Safaga – Red Sea

Lead Agency/ Project Promoter:

General Authority of the Golden Triangle Economic Zone

Current Status/ Stage of Project:

Available land area: 63,87km2
Utilities are not available

Actions Required/ Implementation Arrangements/ Contract Type:

Land allocation method: Usufruct

Documents required: An application in the name of the Chairman of the Golden Triangle Authority, a feasibility study, a source of financing, a commercial register for the activity and a tax card.

Remarks:

For more information: https://www.investinegypt.gov.eg/English/Pages/exploreMap.aspx?oppId=21793