Port operator signs deal with Suez Canal Economic Zone
Dubai’s DP World has signed an agreement to jointly develop an economic zone in the Suez Canal region of Egypt.
Admiral Mohab Mamish, Chairman of the Suez Canal Authority and Chairman of the Suez Canal Economic Zone (SCZone), and Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, signed a partnership agreement to develop an integrated industrial and residential zone at Sokhna, according to a statement.
The signing took place at a ceremony in Sharm el-Sheikh at the World Youth Forum. The agreement will establish a joint venture between SCZone (51%) and DP World (49%) with DP World managing the zone, which is projected to start in the first quarter of 2018.
The zone will cover 95 square kilometres and include industrial and residential areas coupled with the development of Sokhna Port, increasing its capacity and linking it to the industrial zone.
The industrial zone will comprise business sectors including light and medium-sized industries, logistics, and service utilities. Targeted industries include medical, electronics and communications, construction materials, logistics, textiles, automotive parts, food processing, energy production components and petrochemicals.
A residential zone spanning 20 square kilometres will include coastal villas, residential units, shopping and administrative centers, entertainment facilities, mosques, schools, hospitals, clubs and green spaces
More than 400,000 jobs estimated to be created, and the residential area will be able to accommodate 500,000 people, DP World said in a statement.
The zone will be developed in line with the Egyptian government’s plans to develop the Suez Canal Corridor and the new administrative capital.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “This partnership demonstrates the commitment of DP World to support the growth of Egypt’s economy and reflects the trust we place in the determination of the government to make the project a success. The development of the zone will support the sustainable growth of the country and help it attract more business investment. It will also help transform the Suez Canal into a major trade and business hub in the region, given its strategic location and role as an artery for global trade.
“We are looking forward to working with the SCZone through this joint venture to develop the project using our international expertise and know-how of trade and logistics across six continents, to add value to the Egyptian economy and leave a legacy for future generations.”