RIYADH: Egypt plans to produce 100,000 vehicles annually under its Automotive Industry Development Program, as the country continues to attract significant investment into its vehicle manufacturing sector. 

In a Facebook post, the Egyptian Cabinet said the AIDP also aims to steer the country’s automotive industry toward electric vehicles and support the establishment of vehicle development and manufacturing facilities in priority locations. 

The push is part of Egypt’s broader effort to diversify industry, cut import dependence and boost local content, as competition for automotive investment intensifies across the Middle East and North Africa. 

This comes as Egypt led the MENA region in automotive investments in 2025, with 27 projects, followed by Morocco with 23 and the UAE with 15, according to a Fitch Solutions report published earlier this month. 

In its Facebook post, the Cabinet stated: “This milestone reflects the government’s pioneering efforts in developing the automotive industry, driven by the state’s AIDP, which aims to increase local value-added to 60 percent and the local component to over 35 percent.” 

The Cabinet added that some of the most prominent car manufacturing and assembly projects in Egypt include Geely’s assembly plant and El Nasr Automotive. 

Fitch Solutions said that 28 automotive projects were announced or inaugurated across the MENA region during the fourth quarter of 2025, with Egypt accounting for the largest share. 

Egypt secured eight projects during the quarter, followed by the UAE with six, Morocco and Saudi Arabia with four each, and Iran with three, according to the report. 

Fitch said nearly one quarter of the targeted 100,000 vehicles under the AIDP are expected to be exported, supported by incentives aimed at manufacturers that scale up production. 

Under the seven-year program, companies must produce more than 10,000 vehicles a year to qualify for incentives, with a minimum output of 5,000 units per model. 

Fitch said the growing momentum of the AIDP has largely supported sustained investment interest in Egypt’s automotive sector, with capital flowing into both vehicle assembly and component manufacturing in line with the government’s localization strategy. 

The investment trend is expected to extend into 2026, as incentives under the AIDP continue to encourage automakers to expand production capacity and increase local content.