The Ministries of Investment and Foreign Trade, in cooperation with the Ministry of Finance, have announced the launch of a new Export Burden Rebate Program for the fiscal year 2025–2026.

The new program doubled the total budget to reach EGP 45 billion.

Of this amount, EGP 38 billion will be allocated across priority export sectors, while EGP 7 billion has been set aside as a flexible reserve to address emerging needs and opportunities.

To ensure a fair and effective distribution of funds, a comprehensive economic model has been developed to guide allocations to the various export councils.

This model takes into account four main factors: the value added by exports (50%), the growth rate of exports (30%), production capacity (10%), and employment levels (10%).

The new program introduces a tiered system of eligibility based on both core and additional criteria.

Core criteria include the total export value and the added value generated by the products. The additional criteria reflect a broader vision for export development, covering aspects such as participation in international exhibitions, penetration of strategic markets, support for branding, logistical improvements, geographic incentives, environmental compliance, and energy efficiency.

 These additional factors will be weighted flexibly, allowing each sector to benefit in ways that match its specific needs and challenges.

The flexible fund, valued at EGP 7 billion, is designed to target products with strong export potential and introduce incentive schemes based on the economic complexity of goods, particularly within the engineering and chemical industries as a transitional phase.

 This portion of the program also aims to attract global companies to the Egyptian market, support leading exporters, and invest in the infrastructure needed to boost long-term export capacity.

Key advantages of the new program include its expanded funding, enhanced flexibility, and inclusive nature. It caters to companies of all sizes and across diverse sectors, with clear eligibility standards and fast-tracked disbursement timelines.

 Crucially, the program guarantees payment of dues within a maximum of 90 days without deducting any outstanding tax liabilities, marking a notable improvement in transparency and exporter trust.

As for the ongoing 2024–2025 program, which operates with a budget of EGP 23 billion, the government has committed to fully honoring the approved allocations without applying the program retroactively.

For the first time, disbursements under this cycle have been made within 90 days, and payments for the first batch of eligible exporters have been issued in full, free from any tax-related deductions.

Regarding longstanding arrears amounting to EGP 60 billion for shipments made before July 2024, a settlement mechanism has been put in place. Half of the outstanding dues—around EGP 30 billion—will be paid in cash to exporting companies over a four-year period.

The remaining half will be cleared through a set-off system, matching the exporters’ receivables with their obligations to state entities such as the tax authority, customs, electricity and gas providers, and social insurance funds.

In their joint statement, Minister of Investment Hassan El-Khatib and Minister of Finance Ahmed Kouchouk emphasized that the new rebate program was formulated through extensive consultations with export councils.

The government held multiple meetings with 13 sectoral councils to incorporate their feedback and understand the unique challenges faced under previous versions of the program.

As a result, the 2025–2026 framework reflects a more tailored, responsive design that adapts to the specific priorities and realities of each sector.

Both ministers underscored that this program is not a standalone measure, but part of a wider package to enhance Egypt’s investment climate and boost economic competitiveness.

 The state has adopted a supportive monetary policy, introduced a flexible exchange rate, offered tax breaks, reduced non-tax financial burdens, streamlined customs procedures, and implemented 29 trade facilitation reforms to strengthen the country’s export capacity.

Finally, Minister Kouchouk confirmed that EGP 45 billion has been allocated in the upcoming fiscal year’s budget to fund this ambitious export subsidy plan, reaffirming the state’s commitment to a deep and effective partnership with the business community.

Between 2019 and 2024, more than EGP 70 billion was paid to over 2,800 exporting companies, and for the first time, exporters’ dues for the current fiscal year have been settled within the promised 90-day window.