Egypt’s cabinet has approved a draft presidential decree to establish the Jarjoub special economic zone, in line with the special economic zones law No. 83 of 2002, as announced on June 18. This zone will be situated on Egypt’s northwest coast, covering approximately 402,200 acres.
Additionally, the cabinet has endorsed a proposal from the State Grid Corporation of China to develop two solar power projects with a combined capacity of 900 megawatts—500 megawatts in Minya and 400 megawatts in the Wahat region. These projects are part of the government’s initiative to expand renewable energy capacity under Egypt’s 2040 energy strategy and decrease reliance on fossil fuels.
In a separate decision, the cabinet approved the renewal of contracts with smart card companies Smart and AVIT for one year, from July 1, 2025, to June 30, 2026, maintaining the same transaction terms. This contract will support the implementation of the subsidized bread and commodity exchange system using smart ration cards.
Furthermore, the cabinet has authorized legislation for granting a concession to finance, design, build, develop, manage, and operate the Ro-Ro terminal superstructure at Sokhna Port in the Suez Canal Economic Zone (SCZone). This 30-year concession will be awarded to a company operating under the private free zone system, formed by a consortium of international firms. The Ro-Ro terminal project is part of the state’s broader strategy to develop Ain Sokhna Port into a key regional hub for trade between East and West. It also aligns with national plans to support automotive supply chains and related industries, reduce import pressure on foreign currency reserves, and foster industrial growth through coordinated public-private partnerships.
Read more: Egypt’s SCZONE secures $3.23 billion in new contracts over 10-month period
Expansion of SCZone
The SCZone has experienced continuous investment and development, securing 144 projects worth $3.2 billion between July 2023 and April 2024, despite global trade disruptions. This growth is reflected in revenue, which tripled to EGP 8.2 billion in 2023/2024, compared to EGP 2.6 billion in 2016/2017, and saw a 32 percent increase in the first half of FY 2024/2025. Additionally, ongoing projects in the SCZone are expected to create over 25,000 direct and indirect jobs. The SCZone is also focusing on green energy, positioning itself as a hub for green fuels by signing multiple framework agreements for green hydrogen, ammonia, and methanol projects.
Ain Sokhna Port expansion
The expansion of Sokhna Port includes the addition of five new basins, 18 kilometers of marine berths, 9.2 million square meters of handling yards, and 5.2 square kilometers of logistics zones. This development will integrate into a national logistics corridor linking the Red and Mediterranean Seas. The project aims to transform Sokhna into the largest port on the Red Sea, positioning it to rival major international ports and serve as a pivotal hub for regional and global trade. Additionally, the Cabinet has approved a 30-year concession for a Ro-Ro terminal superstructure at Sokhna Port, which will be operated by a consortium of international firms.
Green hydrogen projects
In late 2023, Egypt’s Transport Ministry received Cabinet approval for a $3 billion green hydrogen project near Jarjoub, in partnership with DEME. Between January and April 2024, the SCZone signed 12 framework agreements and six memoranda of understanding (MoUs) for green hydrogen projects, with additional agreements in the pipeline. Moreover, by 2026, Egypt aims to add 12 gigawatts of new renewable energy capacity, having secured $3.5 billion for wind projects and 5.6 gigawatts for solar initiatives, much of which is connected to special economic zones and logistics hubs.
SEZ Law No. 83 of 2002
The law further supports the establishment of special economic zones (SEZs) throughout Egypt by offering tax incentives, customs exemptions, and streamlined administrative procedures to attract investment. Notable existing zones include Port Said, Alexandria, Suez, Ismailia, and Damietta, each focusing on different industrial clusters to encourage diverse economic growth.
TEDA Suez Zone
The Chinese-operated TEDA zone within the SCZone has 42 active projects and 12 under construction, highlighting Egypt’s success in attracting major foreign investors.
