Egypt aims mining industry to be fastest growing and most strategic industry of the country. In line of its long term goal, the country implemented a series of legislations and regulatory reforms to attract investment
The country issued executive regulations for a new mining law in January 2020. With this regulations the country aims to transition mining industry away from a framework based on the petroleum industry to a framework better suited to the investment requirements and production cycle of mining with regards to tax, rents and royalties.
İmplementing legislation and regulatory reforms in line with international norms, The country expects this implementations to result in the country attracting greater investment in infrastructure and human capital development.
With expected investments, the country aims to tap into its significant deposits of metals and minerals and increase the mining sector’s contribution to gross domestic product (GDP) to a targeted 5% by 2025. The country’s GDP had recorded as 0.6% in early 2021
According to Oxford Business Group’s report, titled ‘Egypt Petroleum & Mining’, the country working towards to carve a niche as a regional energy hub and develop its mining industry by capitalizing on its abundant untapped resources.
Noting that Egypt is also “well placed” to act as a key supplier of energy for the continent, OBG regional editor Harry Van Schaick stated that “Several recent large-scale discoveries and efficient discovery-to-production timelines have boosted interest in Egypt’s important oil and gas sector which accounted for 27% of GDP in 2019,” he points out.”
In addition to the expected emergence of regional opportunities, Schaick emphasized that: “Domestic demand for energy is also set to rise, as Egypt’s broader industrial plan gathers momentum, led in part by the country’s multi-pronged strategy to transform its mining industry by rolling out infrastructure and encouraging the development of supportive industries.”
