The minister confirmed that 50% of the outstanding dues to eligible exporters will be paid in cash over a four-year period. The remaining 50% will be settled through a clearing mechanism that offsets exporters’ entitlements against their past and future liabilities.
Minister of Investment and Foreign Trade, Hassan El-Khatib, presented the new Export Subsidy Rebate Program for FY2025/2026, 2026/2027, and 2027/2028, during Cabinet meeting chaired by Prime Minister, Mostafa Madbouly.
The minister confirmed that 50% of the outstanding dues to eligible exporters will be paid in cash over a four-year period. The remaining 50% will be settled through a clearing mechanism that offsets exporters’ entitlements against their past and future liabilities.
El-Khatib noted that the current program is aligned with the budget approved by the Ministry of Finance and includes an increase in the local content requirement to 35% for eligible exports. Importantly, the new program will not be applied retroactively.
For the first time, the program introduces a sector-specific and complexity-based subsidy model. The total annual allocation is projected at EGP 45 billion—EGP 38 billion earmarked for direct sectoral support and EGP 7 billion for strategic, flexible allocations.
Additionally, the exporters will receive their full entitlements within a maximum of 90 days, without any deductions related to outstanding tax liabilities.
The new framework is being designed in coordination with export councils to reflect each sector’s unique needs and priorities.
It also incorporates insights from consultations with experts, stakeholders, and over 500 exporting companies through surveys, in addition to studying international best practices.
El-Khatib reiterated that the new program forms part of a broader strategy to enhance Egypt’s investment climate and global competitiveness.
It supports export growth through complementary measures such as flexible exchange rate policies, tax relief packages, reduced non-tax financial burdens, improved customs procedures, and streamlined trade facilitation processes.
Initial implementation will focus on engineering and chemical industries, targeting products with higher economic complexity and added value.
A major shift in the new program is that disbursements will be based on the actual needs of each export council rather than a one-size-fits-all approach. This new mechanism has been developed collaboratively with the councils to ensure fairness and relevance.
