What to check before you buy or lease a factory in Egypt
SANAD, a broker of ready-built factories and warehouses in 10th of Ramadan City, checks the operating licence, the land payment with the IDA, the contracted power and latest electricity bill, the industrial register, the building permit and any mortgage before it shows a factory. This page explains those checks and adds two more that a buyer or tenant should ask about, the civil defence approval and the title or lease chain, so you can run the same review yourself.
Does the factory hold a valid operating licence, and for which activity?
Ask for the original licence and check its date and the activity written on it. If your activity is different, changing it needs IDA approval, a feasibility study and land suitable for the new activity. An operating licence is also a condition of Decision 171 of 2026 for a sale or lease.
Ask for: The original operating licence (رخصة التشغيل)
Is the land allocated and fully paid to the IDA?
Ask for the allocation notice, the handover record, the payment receipts and a statement from the IDA that all dues are paid. These are among the documents the IDA transfer-of-industrial-unit service asks for. Without full payment the IDA will not approve a transfer, and since October 2024 the Real Estate Publicity Authority does not register a sale of industrial land without written IDA approval.
Ask for: Allocation notice (إخطار التخصيص), handover record (محضر الاستلام), statement that dues are paid
How much power is contracted, in kVA, and what does the latest bill show?
Ask for the electricity company contract and the latest bill, and compare the contracted capacity with your machines' load. Capacity is written in kVA. The power your machines can actually draw, in kW, is lower: roughly the kVA multiplied by the power factor of your load. Raising capacity after a purchase can take months.
Ask for: Electricity contract and latest bill
Is the factory on the industrial register?
Ask for a valid industrial registration certificate. Without it the project is not recorded as an operating factory, and Decision 171 of 2026 requires it for a sale or lease during the window that ends on 31 December 2026.
Ask for: Industrial registration certificate (السجل الصناعي)
Does the building have a civil defence approval?
Ask whether a civil defence (fire protection) approval is on file for the building, and whether the current layout and activity still match it. If the owner cannot show one, ask the licensing authority what your activity needs before you sign, because changing a building after handover costs time and money.
Ask for: Civil defence approval, if one exists (موافقة الحماية المدنية)
Who owns the factory, and is the title or lease chain clean?
Ask for the allocation or ownership contract, a recent commercial register extract for the owning company (the IDA transfer service asks for one dated within the last 3 months), the building permit with approved drawings, and a Real Estate Publicity Authority search for mortgages and seizures. If the unit is already leased, the IDA transfer file asks for a copy of the lease, so ask for it too.
Ask for: Ownership contract, commercial register, building permit, Real Estate Publicity search
The sheet SANAD fills in for every factory
This is the sheet we fill in for every factory before we show it. If anything on it is missing, we tell you before you travel.
- Land price paid
- Checked against: Payment receipts and an IDA letter
- Without full payment the authority will not approve a transfer.
- Operating licence
- Checked against: The original licence and its date
- Required by Decision 171 of 2026 for a sale or lease.
- Industrial register
- Checked against: A valid registration certificate
- Without it the project is not recorded as an operating factory.
- Power capacity
- Checked against: The utility contract and latest bill
- Raising capacity after purchase can take months.
- Building permit
- Checked against: The permit and approved drawings
- Violations delay registration or need a settlement.
- Mortgages and cases
- Checked against: A Real Estate Publicity Authority search
- So the factory transfers free of any mortgage or seizure.
Want SANAD to check a specific factory?
Send us the zone, the area and the activity, and we will reply with factories whose papers have been checked.
Questions before you buy or lease
What documents should I ask for before buying a factory in Egypt?
SANAD asks for six before any visit: the operating licence, the IDA allocation notice with land payment receipts, the electricity contract and latest bill, the industrial register, the building permit with approved drawings, and a Real Estate Publicity search for mortgages. If one is missing, we say so before you travel.
What is the difference between kVA and kW on an electricity contract?
In SANAD's checks the contracted capacity is read in kVA, which is apparent power. The power your machines actually use, in kW, is the kVA multiplied by the power factor, so for example 1,000 kVA at a power factor of 0.9 gives about 900 kW.
Can I lease a factory that has no operating licence?
As SANAD reads Decision 171 of 2026, a lease before 31 December 2026 needs the land fully paid, operation started, an operating licence and industrial registration. A factory without a licence does not meet those conditions.
Who checks the building's structure and wiring?
An independent engineer you choose. SANAD checks the papers, and the structural and electrical survey is done by your own engineer, as our process states from the start.
How long does the IDA take to approve a factory transfer?
According to the IDA service page SANAD cites, the committee decides within 7 working days, notice follows within 3 days, and after approval you have 60 days to activate the transfer with the land authority.
This page is a general checklist, not legal or engineering advice. Confirm with the IDA, your lawyer and your engineer before signing. Last updated: 25 October 2026.