Modon Holding, an Abu Dhabi-based holding company, announced today that it has signed a letter of intent with Egypt’s Elsewedy Industrial Development to build and operate a new industrial zone servicing the Ras El Hekma city megaproject in Egypt.
The 10 million square meter industrial zone, located south of the Alexandria-Matrouh Highway and opposite of the Ras El Hekma site being developed by Modon, will initially focus on attracting investors and manufacturers for building materials for the wider project – ensuring timely, cost-effective construction while introducing advanced, sustainable materials.
“This new collaboration consolidates our already robust network of international partnerships. The agreement with Elsewedy Industrial Development will bring deep local expertise to delivering the Ras El Hekma masterplan and helps ensure we create a destination that surpasses the expectations of future residents while adding tangible value to local communities,” stated Bill O’Regan, group CEO of Modon Holding.
Driving Egypt’s industrial growth
With strong connectivity to major roads, airports and the high-speed rail network, the zone will enhance and localize supply chains as the development progresses. The joint venture between Modon and Elsewedy Industrial Development is the latest in a series of partnerships established to drive the megaproject forward and reaffirms Modon’s commitment to collaborate with Egyptian companies in delivering Ras El Hekma.
“Ras El Hekma Industrial Zone will be a model for smart industrial cities — not only in terms of infrastructure but also in its ability to attract strategic industries in building materials and construction, while supporting the local economy through job opportunities and value-added productive ventures,” noted Mohamed AlKammah, CEO of Elsewedy Industrial Development.
Modon and Elsewedy are now actively securing anchor partners and industrial investors, prioritizing leading Egyptian companies in key segments to drive industrial growth and create synergies with international investors.
Modon has already signed Memorandums of Understanding with several companies to supply the offtake of building construction and other materials for the project and to explore opportunities to develop factories or industrial lines at the proposed industrial zone. This includes Elsewedy Electric, 3S Ready Mix Concrete, RAK Ceramics and Hitech Concrete.
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Zone to expand into key export markets
The long-term vision for the industrial zone extends beyond the construction phase, aiming to establish a sustainable industrial base that drives year-round economic activity and job creation and significantly contributes to Egypt’s GDP. This strategic infrastructure will further strengthen Egypt’s position as a leading trade and manufacturing hub. By diversifying into new sectors, the zone will support regional projects along Egypt’s North Coast while expanding into key export markets such as Libya and Europe.
Additionally, this expansion will position Ras El Hekma as a hub for industrial innovation, aligning with its vision to become a thriving, globally competitive city. Over the next decade, the zone is projected to generate more than 20,000 new jobs, reinforcing its role as a catalyst for economic growth.
Spanning 170.8 million square metres, Ras El Hekma will be a fully functional, smart, sustainable and inclusive urban community. The mega development will be home to up to two million people following completion. ADQ appointed Modon as the master developer for Ras El Hekma in 2024, with the planned city representing a key element of Modon’s international growth strategy and significantly increasing its land under development outside the UAE.
