Egypt's PM meets Samsung, stresses importance of localising advanced tech industries
Egyptian Prime Minister Mostafa Madbouly met with a delegation from Samsung Electronics on Tuesday, stressing the Egyptian government's significant emphasis on localising advanced technology industries and its openness to offering exceptional incentives for such sectors.
The meeting, held at the government headquarters in the New Administrative Capital, was attended by Hassan El-Khatib, Minister of Investment and Foreign Trade. The Samsung delegation was headed by Juhan Yoon, Chief Financial Officer for Samsung's Middle East regional headquarters, and included Won Keun Kim, Chairperson of Samsung Electronics Egypt, and Siham Atta, Head of Government Relations at Samsung Electronics Egypt, along with other company officials.
The Prime Minister began the meeting by welcoming the Samsung Electronics delegation. He expressed his appreciation for the strategic partnership between the government and the South Korean company, which he noted has resulted in the localisation of many advanced technological industries in Egypt.
Madbouly stated, 'I was keen to hold this important meeting with the Samsung Electronics delegation, especially in light of my continuous monitoring of the company's activity in the Egyptian market. Since I assumed my responsibilities as Prime Minister, we have witnessed many important developments and achievements together, as the company began during this period to localise many of its products such as mobiles and tablets.'
The Prime Minister affirmed that the Egyptian government places great importance on localising advanced technological industries. He added that the government is open to providing exceptional incentives for these types of industries, particularly those that produce large quantities with a high local component and significant export rates.
Madbouly directed El-Khatib to hold intensive discussions with Samsung Electronics. These discussions are to explain the aspects related to the mechanism for granting exceptional incentives for localising advanced technological industries in Egypt, within the 7 billion Egyptian pound facility included in the new export rebate programme.
During the meeting, El-Khatib reviewed the status of settling outstanding dues to exporters under the current export rebate programme, noting that an agreement had been reached on mechanisms for settling the company's arrears.
El-Khatib explained that the new export rebate programme is highly ambitious and was approved last week during a cabinet meeting, following discussions with representatives of export councils. He indicated that the financial allocations for export support for the fiscal year 2025-2026, according to the new programme, amount to EGP 45bn.
The Minister pointed out that the new export rebate programme includes dedicated schemes to support exports from projects located in Upper Egypt. He added that the programme, expected to be announced within days, features a significant increase in the basic percentages for all sectors and considers the specificity of each export council. Furthermore, the new programme links actual allocations to the needs of each export council instead of applying uniform rates across all sectors.
The Minister of Investment and Foreign Trade confirmed that the new programme includes a new mechanism allowing for the direction of 7 billion Egyptian pounds according to specific objectives and criteria, among them supporting the localisation of advanced technology industries. 'This makes us open to the possibility of providing exceptional incentives for such industries,' he stated.
Juhan Yoon, CFO for Samsung's Middle East regional headquarters, stated that Samsung Electronics is a leading global company in the manufacturing of televisions, screens, mobile phones, semiconductors, and advanced digital technologies, owning 14 factories worldwide.
Won Keun Kim, Chairperson of Samsung Electronics Egypt, noted that Samsung Electronics' factory in Beni Suef is the company's first in the Middle East and Africa. The current production capacity of the factory is 6 million units annually, and it exports 85% of its television screen production to over 55 countries.
Kim added that total investments in the Samsung Beni Suef factory amount to $700m, with an additional $30m invested in tablet manufacturing. The factory produces 702,000 tablets annually, which are supplied to the Ministry of Education. The facility provides 5,000 direct and indirect job opportunities.
Regarding Samsung's mobile phone factory, Kim explained that mobile production began in 2023 with 1.2 million units. He pointed out that new expansions at the factory have been completed, enabling it to produce approximately 6 million mobile phones annually.
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