Egypt: Breaking Down the SCZone-AD Ports Deal
The SCZone: Egypt's Gateway to Investment and Growth
Recently, the Egyptian Cabinet announced a landmark agreement between the General Authority for the Suez Canal Economic Zone (SCZone) and Abu Dhabi Ports (AD Ports) to develop and manage the KEZAD logistics and industrial zone within East Port Said. However, the announcement sparked confusion among some of the Egyptian public, who mistakenly believed that AD Ports would be managing the Suez Canal itself.
The agreement grants AD Ports a renewable 50-year usufruct to develop an integrated economic and logistics model within the proposed industrial zone in East Port Said on an area of 20 square kilometers (km 2).
AD Ports will develop, construct, finance, operate, and manage the industrial and logistics zone of KEZAD in multiple phases. The focus in the near term will be on completing the first phase, which will cover an area of 2.8 km 2.
A total investment of $120 million will be allocated for relevant market and technical studies, as well as for the development of the first phase over the next three years. Construction of the first phase is scheduled to begin by the end of 2025.
The Egyptian state has prioritized the SCZone as a key driver of economic development, working to enhance its appeal to local and foreign investors by improving infrastructure, digital services, and creating a competitive, eco-friendly business environment.
Established by presidential decree issued in August 2015, the SCZone, spans 455 million m 2, including six seaports and four industrial zones. As of December 2024, the zone hosts 14 industrial developers and provides 100,000 job opportunities.
Revenues from the SCZone have nearly tripled, compared to fiscal year (FY) 2016/2017, reaching EGP 8.2 billion in FY2023/2024, 72% of which were dollar-denominated.
Between 2022 and January 2025, the total investments in approved industrial, service, logistics projects amounted to approximately $8.081 billion across 255 projects. Moreover, the total number of companies established within the SCZone has reached 366.
During the past three years, 130 factories have been established in the SCZone. Moreover, 120 factories are under construction in 2025.
© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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