Egypt: Breaking Down the SCZone-AD Ports Deal
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).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
4 hours ago
- Zawya
SEWA to enhance water security in Sharjah via strategic projects worth $1.09bln
The Sharjah Electricity, Water, and Gas Authority (SEWA) is actively working on several key projects, including the Al Hamriyah Independent Water Desalination Plant, which can produce up to 90 million gallons of water daily. Engineer Faisal Al Serkal, who leads the Water Department at SEWA, stated that the authority is developing several key projects. These include three pumping stations and nine water storage reservoirs that will hold a total of 180 million gallons. These facilities will be located in the areas of Al Zubair, Al Badi', and Al Burair. Additionally, SEWA is constructing main water pipelines that stretch approximately 245 kilometres. Altogether, these projects will cost around AED4 billion and will help improve the water supply system in Sharjah, ensuring that treated water can be effectively delivered to Sharjah and the Central Region. One specific project that has already begun is the construction of a major water pipeline connecting Al Houma to Al Falaj station. This pipeline will be 1,600 mm in diameter and 8 km long, with an estimated cost of around AED105.5 million. It is expected to be finished by the end of this year. This pipeline is part of a larger network of transmission lines that, when completed, will stretch 77 km from Al Hamriyah plant to Al Falaj station, costing around AED645 million. Contractors are already on board to carry out the work for the reservoirs and pumping stations. The individual costs for the projects at Al Zubair, Al Badi', and Al Burair are estimated at AED505 million, AED460 million, and AED446.85 million, respectively. The entire project is set to be completed by the third quarter of 2027.
Zawya
6 hours ago
- Zawya
Egypt plans new submarine power cable to Jordan: report
Egypt is planning to build another submarine power cable to Jordan with a capacity of 2,000 megawatts (MW) to supply electricity to Syria, Iraq and Lebanon, a Saudi news network reported on Tuesday. The project will be completed in 2029 and will quadruple the present power supply to Jordan, Asharq Business said, quoting an Egyptian government source. 'Egypt is planning to export electricity to Iraq, Syria and Lebanon via a submarine cable to Jordan with a capacity of 2,000 project is still under study,' the report said. It added that the new cable would start from Taba town in South Sinai and stretch to the Gulf of Aqaba on the Red Sea. The project is expected to be completed within 30 months, the report said, noting that Egypt is preparing to invite consultancy bids for the project. According to the report, Egypt is already linked to Jordan via a 500 MW capacity submarine cable which was built in 1999. Construction is underway on a 3GW interconnection project between Egypt and Saudi Arabia at an estimated cost of $1.8 billion (Writing by Nadim Kawach; Editing by Anoop Menon) (
Zawya
6 hours ago
- Zawya
Kuwait eyes China for new petrochemical projects: report
Kuwait is considering investing in new petrochemical projects in China as part of a drive to expand its overseas hydrocarbon assets and diversify sources of income, a Kuwaiti newspaper has reported. The Kuwait Petroleum Corporation (KPC), which manages the OPEC member's hydrocarbon sector, has presented proposals for such projects to China, the Arabic language daily Alseyassah said, citing KPC sources. 'The offer submitted by KPC for a large petrochemical project in China has been accepted by the Chinese authorities…it has also been approved by KPC board of directors,' the paper said. It did not provide details of that project but said KPC is also considering similar investment opportunities in Brazil and Latin America. (Writing by Nadim Kawach; Editing by Anoop Menon) (
