On Tuesday, Egypt’s House of Representatives approved a draft law to establish the Supreme Council for Automotive Industry and the Environmentally Friendly Automobile Industry Fund. The bill, which had been referred to a joint committee of the industry, economic affairs, energy, environment, and the plan and budget committees on July 5, aims to support the localization of the automotive industry and promote the development of environmentally friendly vehicles.
The draft law is part of Egypt’s broader strategy to transform the country into a regional hub for the environmentally friendly car industry. It seeks to boost the local content in automobile production, reduce dependence on imported cars—which currently cost Egypt about $4 billion annually—and help alleviate pressure on the country’s foreign exchange reserves. The law also aims to mitigate environmental risks by encouraging the production of cars that reduce carbon emissions, aligning with Egypt’s sustainability goals.
Additionally, the bill emphasizes the need to address environmental concerns, aiming to lower carbon emissions and their negative impact on sustainable development and public health. It also supports the constitutional principles laid out in Articles 27 and 28, which call for an economic system that fosters balanced growth, investment, and protection of productive industries while improving competitiveness and reducing the environmental footprint.
The approval of this draft law marks a significant step in Egypt’s efforts to foster domestic car manufacturing, encourage green technologies, and ensure economic growth that is environmentally and geographically balanced.
