New October City Case Study: Egypt’s Emerging Hub for Industrial Growth and Investment Opportunities

New October City is one of the 4^th generation cities constructed to align with the Egypt’s new direction of Urban Development. It was built to be an extension of the existing 6^th of October City. It spans an area of about 90,000 acres, which makes it one of the biggest expansions since the development of the city.   New October City is located behind the industrial zone, where its boarder begins. The boarders extend along Al Wahat road, covering an area of about 60 thousand feddans. It is approximately 45 kilometers from the Pyramids area and around 59 kilometers from the center of Cairo. This location positions New October City as a vital hub for economic and industrial activities, enhancing its significance within Egypt’s broader economic landscape, which is characterized by a diverse array of manufacturing and service sectors. The New 6th of October area contributes 31% of Egypt's GDP. The closest geographical industrial zones to the new 6th October Industrial Zone are as follows:  

• 6th October Industrial Zone (25 Km away)
• El Fayoum Industrial Zone (169 Km away)
• El Sadat Industrial Zone (111 Km away)
• Tarboul Industrial City (166 Km away)

 

Infrastructure:

New October City boasts a well-planned infrastructure designed to support both current needs and future growth    1. Road Network:

• Road networks with a length of 1146.5 km have been implemented.
• The city is connected via key highways, including the Cairo-Alexandria Desert Road, facilitating smooth access to major cities like Cairo and Alexandria.
• The city is easily accessible via the July 26 Corridor, connecting it to downtown Cairo.
• It is also accessible through main roads, including the Central Axis Road, Dabaa Axis, the Wahat Road and the Middle Ring Road.

 2. Utilities: The city has a well-established network of utilities, including electricity, water, and sewage systems. Water:

• It has a purification plant with a capacity of 268 thousand m³ / day
• Water networks are implemented with a length of 1887.5 km. Water networks of different diameters with a length of 782.5 km are under implementation.
• A water line from Sheikh Zayed station (1000 mm) with a capacity of 125 thousand m³/ day.

Electricity:

• 3 transformers stations with a capacity of 640 MVA are implemented. The implementation of two 400-MVA station stations is in progress.
• Electricity networks with a length of 12,865 km are implemented

 

Public Transportation:

The city is investing heavily in public transportation systems, including bus networks. It will also benefit greatly from the metro line 4 as well as Cairo Monorail project that will swiftly connect it to Giza and Greater Cairo. The city is strategically located minutes away from Sphinx International Airport, providing excellent connectivity for both domestic and international transportation. In addition, The October Dry Port is located in the industrial and logistical zone of the New 6th of October City, which further enhances the vitality of the city and its role as a logistic hub, not only residential or commercial.  

Industries and Sectors in New October City

The Total number of factories in 6^th October Industrial Zone is 1853. The Top Industries are as follows:  

1. Manufacturing

New October City is home to a thriving manufacturing sector, with a strong focus on textiles, automotive, and chemicals. Companies in these sectors benefit from access to skilled labor, modern facilities, and also industrial parks designed to support large-scale operations. Chemical sector takes up 25% of the total number of factories in the city. In addition, textile manufacturers will make use of October Dry Port as an opportunity to export and explore international markets.

2. Logistics and Warehousing

The proximity to the October Dry Port and road networks and airports makes New October City a key player in logistics and warehousing. The city provides an ideal location for supply chain management and distribution.

3. Food Processing:

New October City has seen significant growth in the food processing sector. With a powerful infrastructure and the presence of industrial zones, it supports food manufacturing to a great extent. This industry takes up to 16% of the total number of factories in 6th October Industrial Zone.

4. Pharmaceutical Industry

The city hosts pharmaceutical manufacturing facilities, research and development centers, and distribution hubs, serving both the local and regional markets. All while complying to the highest standards of quality and safety.

5. Engineering

Engineering is one of the leading industries in the New October City, as it takes up to 32% of the total number of factories in 6th October Industrial Zone. With 584 factories, the city offers a sound infrastructure that supports large-scale operations.  

Types of Projects

The city has seen the development of various projects, including industrial developments, residential and commercial complexes, educational institutions, and healthcare facilities. Investment Opportunities:

1. Industrial development such as Industria October, a major industrial city that covers 2.6 million square meters.
2. Residential and Commercial: Badya Palm Hills, which has cooperated with the Ministry of Housing and Sakan Misr.
3. Educational Institutions: Badya University and Misr University for Science and Technology

 

Investment Opportunities

Total capital investments in 6^th October Industrial Zone have reached approximately EGP 72 billion. Where the food sector takes the lead with a capital investment of almost EGP 19 billion in the old 6^th October Industrial Zone. Following is the engineering sector with EGP 18 billion and then the chemical sector with EGP 17 billion. Potential Sectors The most promising sectors for investment in New October City include:

• Manufacturing
• Real Estate Development
• Logistics
• Chemicals and Pharmaceuticals
• Food and beverages

 

Incentives Offered by The Government:

Golden Licenses

• The government granted 44 golden licenses that aim to facilitate and expedite investment processes, providing a streamlined approach for businesses looking to enter the market.

Tax Incentives (Decree No. 77)

• The government has introduced attractive tax incentives under Decree No. 77, especially targeting foreign investors. This includes exemptions and reductions.

Startup Tax Incentives

• As of February 2025, Egypt has implemented a series of tax incentives aimed at fostering the growth of startups and small to medium-sized enterprises (SMEs). Key provisions include:
• Simplified Tax System; A new framework has bee introduced for startups, SMEs, freelancers, and professionals with annual revenues up to EGP 20 million (approximately $400,000). This system offers proportional tax rates ranging from 0.4% to 1.5%, eliminating the need to calculate net profits.
• Participants benefit from exemptions across various tax categories, including income tax, value-added tax (VAT), stamp duty, and state resource development fees.
• Notably, they are exempt from capital gains tax, divided tax, stamp duty, and registration fees. Additionally, VAT filings have been shifted from a monthly to a quarterly schedule.

Target Investors New October City appeals to a diverse range of investors:

• Local Manufacturers: Local businesses looking to expand operations can benefit from the city's infrastructure.
• International Investors: Foreign companies interested in entering the Egyptian market may find favorable conditions here, especially with the streamlined establishment cycle.
• Real Estate Developers: Opportunities exist for those focusing on urban housing or commercial projects such as malls.

  Future Outlook: The long-term vision for New October City is to establish it as a regional or global industrial hub. This aligns with Egypt's broader economic strategy and 2030 Vision aimed at enhancing its manufacturing base and integrating into global supply chains. Continued investments in infrastructure and technology will be crucial for realizing this vision. Investors looking to profit from Egypt's economic expansion will find New October City to be a viable prospect. Given the area's prime location, strong infrastructure, wide range of sectors, and encouraging government initiatives, prospective investors are urged to investigate the numerous opportunities in this rapidly developing urban area.  

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