Latest news with #freezones
Arabian Business
2 days ago
- Business
- Arabian Business
Egypt eyes doubling public free zones to 16 as GAFI targets $140bn exports by 2030
Egypt plans to expand its public free zones to help deliver a $140 billion export target by 2030, with its investment authority saying it could nearly double the number of such hubs to 16. The General Authority for Investment and Free Zones (GAFI) said on Sunday it is preparing to establish four new public free zones after receiving approval from the Ministerial Group for Industrial Development. The new projects will be located in 10th of Ramadan, New October, New Borg El-Arab and New Alamein. Occupancy across Egypt's nine existing public free zones has reached 95 per cent, prompting the need for additional capacity, GAFI said. Export-oriented production GAFI Chief Executive Hossam Heiba said the new zones will be 'entirely export-oriented' in order to support the government's long-term trade goals. 'The objective is to achieve $140 billion in exports by 2030, avoid competing with domestic investment entities in the local market, uphold fair investment principles, maximise the benefits of incentive policies, focus on green transformation and environmental compliance, and ensure the success of strategies targeting foreign markets with Egyptian products,' Heiba said. Heiba added that GAFI is working with the New Urban Communities Authority to speed up infrastructure development so the new zones can begin operations by the end of 2026. Heiba also said discussions are underway to establish three more public free zones beyond the four already approved. If implemented, the plan would raise the number of zones to 16. 'The decision to activate additional public free zones comes following the success of this system in achieving sustainable growth in Egyptian exports,' he said. Investor committee At Sunday's meeting, GAFI and investors also agreed to form a working group made up of representatives from all industrial sectors. The group will propose mechanisms for the operation of public free zones and recommend steps to meet the government's export targets, the authority said. The meeting was attended by investors from existing zones and followed the approval of the expansion plan by the ministerial group, chaired by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel El-Wazir. 'Investment for Export' strategy The free zone expansion is aligned with the Ministry of Investment and Foreign Trade's 'Investment for Export' plan, which seeks to direct more industrial investment toward international markets. GAFI said the export-only focus will ensure that production in new zones complements local industry rather than competing with it, while maximising foreign currency earnings and encouraging compliance with environmental standards. Egypt's free zones offer investors exemptions and incentives aimed at attracting foreign capital and boosting trade flows. GAFI said the system's performance so far – with near full occupancy of existing sites – demonstrates strong demand for export-focused industrial platforms.
The National
7 days ago
- Business
- The National
AD Ports first-half profit up despite trade tariffs and global uncertainty
AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, reported growth in net profit for the first half of 2025 despite increasing international trade tariffs and geopolitical uncertainty, on the back of rising revenue. Net profit attributable to owners of the company for the January to June period rose more than 3 per cent annually to Dh668 million ($182 million), the company said on Wednesday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue for the six months ending in June rose nearly 17 per cent to Dh9.4 billion, driven by growth in its ports, economic cities and free zones, maritime and shipping clusters. "As global cargo flows continued to shift against a backdrop of regional conflicts and tariff volatility, the strategic flexibility of AD Ports Group's synergistic business structure kept our ... international expansion on course, allowing us to mitigate adverse external factors, while capitalising on opportunities in dynamic regions such as the Red Sea, and along emerging alternative trade corridors we are developing such as in Central Asia," said Capt Mohamed Al Shamsi, managing director and group chief executive of AD Ports. For the second quarter of 2025, AD Ports group reported a 15 per cent increase in revenue to Dh4.82 billion, driven by the five main clusters in its business. Net profit attributable to owners of the company for the three-month period dropped 3.5 per cent year-on-year to Dh321 million. The global shipping industry has been buffeted by headwinds arising from economic uncertainties, supply chain bottlenecks, Houthi attacks on vessels in the Red Sea and shifts in global trade flows due to the on-again, off-again US tariffs imposed by President Donald Trump on the country's key trading partners. Global trade expanded by an estimated $300 billion in the first half of 2025, despite a slower pace of growth, said the latest Global Trade Update by the UN Trade and Development (Unctad) last month. Trade rose about 1.5 per cent in the first quarter and projections are for 2 per cent growth in the second quarter, it said. Trade in services remained the main driver of annual growth, rising 9 per cent over the last four quarters, while developed economies outpaced developing countries in the first quarter of 2025, reversing recent trends that had favoured the Global South, the report found. AD Ports Group said that as supply chains "continue to recalibrate", the company's five-cluster business "continues to demonstrate both resilience and adaptability in volatile and disruptive times". This has allowed the group to respond swiftly to shifting cargo flows and to capitalise on new trade opportunities in its key focus regions including the Middle East, Red Sea, Europe, Africa, Indian subcontinent, Central Asia and South-east Asia, it said. Red Sea attacks and US tariffs While the Red Sea attacks continue to pose a risk to global trade, AD Ports has been able to mitigate its negative impact and has capitalised on increased demand for both reliable passage through the Red Sea and alternative trade routes, the company said. "Recent commercial progress in markets like Egypt and Central Asia shows the group's commitment to investing along existing and emerging trade routes," it said. Last December, the company awarded a contract to Egypt's Hassan Allam Construction to build the infrastructure for Noatum Ports-Safaga Terminal on the country's Red Sea coast. The first internationally operated port terminal in the Upper Egypt region, it will span 810,000 square metres, with capacity to handle 450,000 20-foot equivalent units (TEUs) of container cargo. AD Ports also said policy shifts such as the new US tariffs have added further complexity to global trade flows. "The potential impact of US tariffs remains under close watch, though current announcements have not resulted in material effects as disclosed in the strong set of operational performance delivered year-to-date," it said. Earnings before interest, taxes, depreciation and amortisation increased 9 per cent on an annual basis in the second quarter to Dh1.17 billion, while operating cash flowreached Dh1.14 billion, almost doubling from the same period a year earlier. Capital expenditure in the three-month period reached Dh928 million, with most of the outlay going into maritime and shipping, economic cities and free zones and port assets. Looking ahead, the company acknowledged the clouded outlook arising from geopolitical tension and economic uncertainty, but remained confident in the long-term potential of the industry. "While reduced geopolitical and macroeconomic visibility is expected to continue in the second half of the year, so too is the long-term profitable nature of our value-enhancing internationalisation," Mr Al Shamsi said. Profit performance is expected to improve in the second half of the year, the company said without elaborating.
Zawya
7 days ago
- Business
- Zawya
UAE's AD Ports Group Q2 profit flat despite 15% revenue surge; beats estimate
AD Ports Group, the UAE-based maritime logistics and free zones operator, said Q2 2025 net profit edged 1% higher year-on-year (YoY to 445 million dirhams ($121 million) as higher income tax weighed on earnings. The result, however, beat analysts' estimate of AED334.32 million, according to LSEG data. Revenues surged 15% YoY to AED 4.83 billion driven by strong performance across ports, economic cities and free zones (EC&FZ), as well as maritime and shipping clusters. Net profit for H1 rose 8% on year to AED 908 million, while revenue jumped 17% to AED 9.4 billion. Capital expenditure reached AED 928 million, with the majority of cash outlays going into maritime and shipping and EC&FZ clusters. However, capex intensity declined, reaching 19% of Q2 revenue, compared with 28% in Q2 2024.
Al Arabiya
23-05-2025
- Business
- Al Arabiya
Syria and Chinese company sign memorandum on investment
Syria said Thursday it had signed a memorandum of understanding with a Chinese company to invest in free zones for 20 years. The General Authority for Land and Maritime Ports said on X that it had signed a 'strategic agreement' with the Chinese company Fidi. The deal gives Fidi full operation rights over the Hessia free zone in the central province of Homs where an industrial zone would be developed on 850,000 square metres (210 acres) of land. It also grants Fidi rights to invest in 300,000 square metres of the Adra free zone on Damascus' outskirts, where the focus would be on commercial and service products for the local and regional markets. Syria has numerous free zones offering foreign investors benefits including full tax exemptions, the freedom to hire local or foreign labor and unrestricted transfer of foreign capital. The country's new rulers hope the imminent lifting of US and European sanctions will kickstart an economic recovery, after 14 years of devastating war. China was a major backer of former president Bashar al-Assad alongside Russia and Iran before his overthrow in December. Along with Russia, it repeatedly used its UN Security Council veto to support the Assad government and block Syria-related resolutions during the conflict.
Zawya
12-05-2025
- Business
- Zawya
Egypt: GAFI to allow free zones to host services startup HQs for export purposes
Arab Finance: Free zones will allow hosting headquarters of startups operating in the services sector for export purposes for the first time, Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), announced. Heiba's remarks came on the sidelines of RiseUp Summit 2025, which was held under the theme "Boosting Startups: Policy, Progress, and Governmental Support." These companies will operate business within free zones, leveraging the advantages of smooth procedures and full customs and tax exemptions. Heiba noted that the total area available for administrative and operational startup headquarters is approximately 9,000 square meters. The CEO said the authority aims to attract investments from companies operating in the field of software exports and AI applications, while ensuring the presence of institutions that support startups, such as consulting, marketing, and legal services firms. The GAFI secured a fast track for entrepreneurs to establish and operate their companies. The electronic incorporation of a one-person company takes only two hours. Also, entrepreneurs will receive premium VIP service at investor service centers without any additional fees. Furthermore, the CEO addressed the authority's coordination with the European Union (EU), Saudi Arabia, and Morocco to facilitate the expansion of Egyptian companies in these markets without facing the challenges of double taxation or any protectionist policies. He also affirmed the administrative and promotional support to Egyptian companies in these markets, particularly in the initial phases following market entry, in addition to attracting new investments from these markets. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
