Suez Canal Region to Invest $3 Billion for Expansion
Egypt's Suez Canal Economic Zone (SCEZ) is preparing for a significant expansion with plans to invest an additional $3 billion in infrastructure to attract more investors. The SCEZ, which includes six ports and four industrial zones near this critical waterway, benefits from special legal and tax incentives designed to take advantage of the extensive international maritime traffic.
The region has already shown significant growth; $3 billion has been invested in recent years, drawing over $6.3 billion in various sectors. This encompasses 164 projects, seven of which are in ports, while the rest are in factories and logistics within the area. SCEZ Chairman Gamal El-Dein reported an increase in new projects over the last 24 months, stating that approximately $1 billion in investment has been attracted in the first four months of the fiscal year that began in July, predicting a sharp rise in investment.
Despite the anticipated decline in revenue to $1.83 billion in the first half of 2024 due to redirected shipping traffic resulting from attacks by the Houthis in Yemen on shipping in the Red Sea, SCEZ has achieved success in its diversification strategy. This success is exemplified by the expansion of the East Port Said container port, which will include a new general cargo terminal, a ro-ro vehicle terminal by January, and a container terminal by April.
SCEZ is also in discussions to extend the container docks in East Port Said by an additional 1 km. This development comes after several years of operation of the existing 2.4 km container docks. Significant roles are expected for private investors in the construction of this new infrastructure.
Having launched over 160 projects in the last two years, SCEZ has expanded its company base by approximately 50%, increasing to around 300 companies. Infrastructure investments are considered necessary to support future projects beyond the current scope.
SCEZ is also focusing on green fuel industries, including green hydrogen, green ammonia, and green methanol, and has signed 15 framework agreements and eight memoranda of understanding for potential projects.
A new desalination facility with a daily capacity of 250,000 cubic meters is being developed in Sokhna to serve the green hydrogen industry. The tender for this project will be opened soon, with construction expected to be completed within 2-4 years.