The surge in Chinese investment demand has been a key driver behind the expansion of Egypt's free zones, which are now nearing full capacity, according to Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI). Heiba said the influx of Chinese capital also spurred the establishment of four new free zones in 10th of Ramadan, New October, New Borg El Arab, and New Alamein, all of which are scheduled to begin operations by the end of 2026. He made the remarks during the inaugural Egypt–China Investment Forum, which gathered representatives from around 200 Egyptian and Chinese companies, including major players such as BYD (electric vehicles), Longi (solar energy manufacturing and management), and Inspur (AI and data centre solutions). The event also brought together leading firms from the textiles, infrastructure, and technology sectors—areas prioritized by both governments for expanded cooperation. Heiba noted that China ranks as Egypt's top global trading and investment partner, with more than 2,000 Chinese companies currently operating in the country and investments exceeding $8 billion. Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI) Despite this strong presence, he said Egypt continues to seek additional Chinese investment in strategic sectors where it holds competitive advantages—such as automotive manufacturing, pharmaceuticals, home appliances, textiles, ICT, healthcare, education, logistics, tourism, renewable energy, and agriculture. To attract further investment, Heiba highlighted Egypt's comprehensive incentive packages, including refunds of up to 50% of investment costs through tax deductions over seven years, as well as simplified regulatory procedures and access to major regional markets. Meanwhile, Ahmed El-Gendy, General Manager of Haier Egypt, praised the country's streamlined registration and licensing processes, noting that Haier completed the first phase of its Egyptian factory in just 13 months—making it the fastest-established plant in the company's global network. The facility has already begun exporting to international markets. Haier, the world's largest home appliance manufacturer, operates production sites in China, the United States, South Africa, and the Philippines, with products sold in more than 200 countries. Its Egyptian subsidiary holds the Golden License, which consolidates all necessary permits into a single authorization. The forum also featured business-to-business (B2B) sessions between Egyptian and Chinese companies to explore joint ventures targeting both the domestic market and international markets connected to Egypt through its network of trade agreements.
