Egypt signed on Sunday a $120 million agreement with Abu Dhabi's AD Ports Group to develop a 20-square-kilometre industrial and logistics zone in East Port Said. The move is designed to bolster trade and investment at the northern entrance of the Suez Canal, according to a Cabinet statement. The agreement, signed in the presence of Egyptian Prime Minister Moustafa Madbouly, grants Abu Dhabi Ports 50-year usufruct rights—renewable—to finance, build, operate and manage the new zone, dubbed "KIZAD East Port Said." Construction of the first 2.8-square-kilometre phase is slated to begin by the end of 2025. The project is positioned to become a regional trade and logistics hub, leveraging Egypt's strategic location at the crossroads of three continents and a key point along global shipping routes. It also integrates directly with East Port Said port, one of the most advanced Mediterranean ports, boosting its appeal to international investors. "This is a strategic milestone that reflects the deepening partnership between Egypt and the UAE," said Waleid Gamal El-Dien, Chairman of the Suez Canal Economic Zone (SCZone), highlighting its role in enhancing supply chain resilience and industrial growth. The project includes plans for a 1.5-kilometre quay and potential multipurpose cargo terminal. Abu Dhabi Ports has committed $120 million to early development and technical studies over the next three years. Ahmed Al Mutawa, Regional CEO of AD Ports, said the East Port Said development would be a significant driver of investment and economic growth. "The KIZAD East Port Said Zone will play a critical role in attracting investment, accelerating industrial and logistics growth, expanding exports, and creating job opportunities," "By leveraging the natural assets of the Suez Canal region, the project will bolster Abu Dhabi Ports' growing presence in Egypt and support Egypt's positioning as a strategic global trade gateway." Al Mutawa added. The deal also follows a memorandum of understanding between Abu Dhabi Ports and Egypt's Hassan Allam Holding to explore further logistics and industrial opportunities in East Port Said and beyond. In 2024, Hassan Allam Construction was tasked with developing infrastructure for the $200 million Safaga multipurpose terminal on the Red Sea. The Suez Canal Economic Zone, created in 2015, includes four industrial zones and six seaports across 455 km2, and is a key part of Egypt's vision to become a global manufacturing and logistics centre. Attribution: Amwal Al Ghad English
