Egypt's Prime Minister Moustafa Madbouly downplayed on Wednesday concerns over a newly signed deal with UAE's AD Ports Group to develop an industrial zone in East Port Said, saying the agreement will not affect Suez Canal sovereignty. At a press briefing in Cairo, Prime Minister Madbouly said the agreement falls under the government's long-term strategy to expand the Suez Canal Economic Zone (SCZone) by attracting foreign direct investment into underutilized areas adjacent to the canal. The project, he stressed, is legally and operationally separate from the Suez Canal Authority, which maintains full control over the strategic waterway. "We are not selling land. We are leasing it under usufruct agreements, and all revenues are structured with minimum guaranteed returns," Prime Minister Madbouly said. Under the deal, Abu Dhabi Ports will operate as a master industrial developer, tasked with building out infrastructure and facilities to host manufacturing and logistics firms. The arrangement mirrors existing models used in Ain Sokhna and East Port Said, where 14 developers are already active, including China's TEDA. The government expects the Abu Dhabi Ports project to generate a minimum return of 15 per cent, with upside potential based on performance. All contracts in the SCZone, the prime minister emphasised, include fixed base payments pegged to land valuation, protecting state revenues regardless of investor profitability. The agreement drew online criticism and speculation that it could give foreign firms operational influence over the Suez Canal corridor. Prime Minister Madbouly called such claims "deliberate misinformation," pointing out that the zone's mandate is economic development—not maritime navigation. "Egypt's role in global trade shouldn't stop at collecting canal transit fees," he said. "We aim to localise industry, create jobs, and increase value-added exports." The SCZone, covering 461 square kilometres, is a cornerstone of Egypt's industrial policy. He said the AD Ports project will be customised to attract specific high-value sectors and expects to host multinational companies in logistics, manufacturing, and supply chain services. Attribution: Amwal Al Ghad English
