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East Port Said getting a new industrial zone: Abu Dhabi-based port operator AD Ports has inked an MoU with Egypt’s Suez Canal Economic Zone (SCZone) to establish an industrial zone in East Port Said, according to a statement. AD Ports and SCZone will operate and manage the 20 sqkm industrial zone, which will operate under a usufruct agreement.
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The focus: The zone will specialize in several industries, including renewable energy and tech products. A feasibility study will be conducted to assess the possibility of linking the zone with docks, yards, and logistics areas in East Port Said.
What is AD Ports handling? The UAE port operator will help develop the infrastructure for the industrial zone, which should contribute to providing an attractive environment for investors in Egypt’s economy.
AD Ports has footprints in Egypt: AD Ports subsidiary Noatum Maritime acquired a majority stake back in August in Egyptian cargo services and maritime agency Safina BV — the agreement is set to close in 3Q 2024. AD Ports reportedly submitted an initial offer in March 2023 to acquire a controlling stake in state-owned Port Said Container Handling (PSCCHC) and Damietta Container Handling (DCHC). AD Ports previously inked a definitive 30-year concession agreement with Egypt’s Red Sea Ports Authority (RSPA) for the development and operation of a multi-purpose terminal at Safaga Port. The Safaga 2 terminal is set to kick off operations in 2Q 2025.
AND OVER IN SADAT CITY- Egypt greenlights USD 10 mn garment freezone in Sadat City: Egypt’s cabinet has approved the establishment of a USD 10 mn special freezone — under the name LT Jeans Service LLC — in the fourth industrial zone in Sadat City, according to a statement. The freezone — which will cover 22.8k sqm — will manufacture ready-made garments.
What we know: The project aims to produce 2.8 mn pieces of clothing per year using 75% local components, and will export 100% of its output, leveraging Egypt’s proximity to international markets. Egypt’s growing garment industry accounts for nearly 7% of Egypt’s exports and employs more than 1.5 mn workers.
The industry is a roll: Chinese textile and garment manufacturer Jiangsu Lianfa Textile wants to set up a USD 500 mn integrated complex for textile and ready-made garment production in Egypt. Egyptian garment manufacturer Alex Apparels will build a USD 100 mn weaving and dyeing factory in the Alexandria freezone. Turkish ready-made garment maker Şirikcioglu has obtained approval from Egypt’s government to establish a denim factory in Port Said with an estimated investment cost of USD 700 mn. Local ready-made garment maker Eroglu Egypt — the local arm of the Turkish Eroglu Holding — will invest over USD 150 mn to build a ready-made clothing factory in Qantara West Industrial Zone, under an usufruct agreement.
