Freehold, Usufruct or Rent-to-Own?
The Industrial Development Authority (IDA) regularly offers serviced industrial land through the Egypt Industrial Digital Platform, under more than one system. The system you choose affects how much cash you need up front and your obligations for years to come.
1. Freehold (تمليك)
You buy the land and it becomes yours once the price and conditions are met. Land is offered at the actual cost of utilities. In the March 2026 offering, the booking deposit was cut to 10% of the land value.
Suits you if: you have enough liquidity and want an asset you own and can later dispose of within the rules.
2. Usufruct (حق انتفاع)
You use the land for a set period for an annual fee, without owning it. In IDA offerings, the annual usufruct fee is 5% of the freehold price per m².
Suits you if: you want to limit investment in land and direct capital to machinery and production lines.
3. Rent-to-own (الإيجار المنتهي بالتملك)
A system the IDA offered for the first time in August 2026. As announced:
- Lease term of up to 21 years.
- Annual rent of 5% of the land price per m², rising 10% a year, and re-assessed every 7 years.
- The investor may apply to buy the land after proving commitment by starting actual operation and obtaining an operating license and industrial register.
- On purchase, rent already paid is deducted from the total price; the investor pays 25% of the remaining value, and the balance in 3 annual installments with the set interest.
Suits you if: you are a new investor who wants to start at the lowest cost, with the option to own once the project is stable.
Quick comparison
| Freehold | Usufruct | Rent-to-own | |
|---|---|---|---|
| Land ownership | Yes | No | After proving commitment and buying |
| Up-front cash | Highest | Lower | Lowest |
| Annual commitment | Price installments, if any | 5% of freehold price per m² | 5% of price per m², +10% a year |
Before you decide
Detailed terms vary from one offering to the next and are set out in each offering’s tender booklet. Read it carefully and calculate the total cost over the life of the project, not just the first year.
Figures as announced by the Industrial Development Authority in 2026; they may change in future offerings.
