Egypt has formalized a memorandum of understanding (MoU) with DP World to explore the establishment of a public free zone within the New Administrative Capital. This initiative aims to target key industries such as electronics, automotive, apparel, and footwear, according to a statement.
The signing event was held today at the government headquarters in the New Administrative Capital, with Prime Minister Mostafa Madbouly in attendance. The MoU was executed by Khaled Abbas, chairman and managing director of the Administrative Capital for Urban Development (ACUD); Hossam Heiba, president, General Authority for Investment and Free Zones (GAFI); and Avnash Iyer, country head, DP World Egypt.
Plans for development outlined
In his remarks, Khaled Abbas outlined plans for the free zone, which will encompass approximately 500 acres within the designated land for the the Administrative Capital for Urban Development. This strategically located area spans a total of 1,958 acres along the Cairo-Suez Road, designed to facilitate industrial infrastructure development.
Next steps for project implementation
Abbas announced that technical and economic studies for the project will commence shortly, setting the stage for final contracts and the official launch of the free zone. He emphasized that this agreement is a vital part of the Administrative Capital for Urban Development’s vision to create diverse attraction points and enhance land utilization, ultimately fostering a modern industrial city.
Collaboration with DP World
DP World will spearhead the development of the public free zone in collaboration with the General Authority for Investment and Free Zones. The primary sectors targeted for the zone include electronics, automotive, fast-moving consumer goods, apparel, and footwear. Abbas noted that DP World will leverage its extensive global network to attract investment and facilitate trade within the project.
Incentives for investors
Hossam Heiba highlighted that the establishment of this public free zone is aimed at drawing further investments across manufacturing, trade, and logistics sectors. He pointed out that businesses operating in this zone will benefit from a host of tax and customs incentives afforded by law.
Strategic location advantages
Heiba also underscored the strategic location of the zone, which is in proximity to several key Egyptian ports, including Sokhna Port on the Red Sea and various Mediterranean ports. This advantageous positioning will enhance logistical efficiency, particularly through the Sokhna-Dekheila corridor.
Market opportunities for companies
Moreover, Heiba stated that companies establishing operations within the zone—whether in industrial, commercial, or logistical sectors—will significantly benefit from Egypt’s role as a gateway for exports to global markets, including the European Union, the Arab region, and the expanding African market.
Enhancing supply chain solutions
For his part, Avnash Iyer emphasized that DP World is a leading global provider of integrated supply chain solutions, characterized by innovation, speed, efficiency, and reliability across its supply chains. With a connected global network comprising 295 business units in 78 countries, DP World is well-positioned to support the integrated supply chain needs of the region, he further added. Iyer also noted that DP World enhances its supply chain solutions through a robust network of ports, economic zones, and logistics services, including its operations at Sokhna Port and the ongoing development of an 84-acre logistics complex in the area.
Read more: Egypt invests $300 billion in infrastructure development over 10 years, says minister
Enhancing oil cooperation
Enhancing oil cooperationIn August 2024, Egypt and the UAE formalized a Memorandum of Understanding (MoU) to create a new logistics zone aimed at facilitating trade in the Mediterranean region, with potential investments that could reach up to $3 billion, with the possibility of further increases. This agreement aims to capitalize on the integrated system established in the Fujairah Petroleum Zone and implement similar strategies at the Hamra Petroleum Port, situated along the Mediterranean coast. Additionally, it seeks to harness the robust connections between the Fujairah company and major global oil and gas suppliers to address Egypt’s increasing demand for petroleum products. The focus is also on optimizing resources within the petroleum sector to enhance the trade of these essential commodities. Moreover, this agreement with the UAE aligns with the strategy of the Ministry of Petroleum and Mineral Resources to strengthen Egypt’s role as a regional hub for crude oil and petroleum product trading. The initiative is designed to make effective use of ports, storage facilities, and sea berths to streamline the reception and trading of these petroleum products.
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