United Arab Emirates to Build New Free Zone in Egypt
Another similar project will be implemented in cooperation with China in the northwestern region of New Alamein
The Egyptian government has embarked on the construction of a new administrative capital and announced a plan that includes the construction of a modern free zone in the urban area. The implementation of the ambitious project was entrusted to the United Arab Emirates, Egypt’s long-time partner.
Egypt’s New Administration Capital Company for Urban Development (ACUD), which is building the new administrative capital, has signed a memorandum of understanding with Dubai Ports World (DP World), a leading Emirati company in the construction industry. The process will be overseen by Egypt’s General Authority for Investment and Free Zones (GAFI).
According to ACUD President and CEO Khaled Abbas, “the two companies agreed to explore the possibility of establishing a free zone on lands transferred to the administrative capital company.” The agreement provides for feasibility studies to be conducted within a short timeframe in preparation for the signing of final contracts and the official launch of the public free zone.”
In practice, the project will be developed as a general free zone by DP World, which has accumulated extensive experience in this sector, and in coordination with the Investment Authority.
The main industries of the new free zone’s resident companies will be electronics, automotive industry with a focus on electric vehicles, consumer goods, clothing, and footwear. It was emphasized that DP World will use its “global customer network” to attract investment and trade to its free zone project.
In this context, Director General of the General Investment Authority Hossam Heiba (pictured) said that “the project to establish a public free zone on the land allocated for Egypt’s new administrative capital aims to attract more investments in the manufacturing, commercial, and logistics sectors.” Heiba emphasized that “all projects that will emerge in this new free zone will enjoy a number of preferences, tax and customs benefits guaranteed by the Egyptian law on supporting projects in state free zones.”
The launch of a number of special economic zones is at the heart of the North African country’s ten-year economic development plan: the Egyptian government, in cooperation with China State Construction and Engineering Corporation (CSCEC), plans to build an industrial zone in New Alamein, a city in northern Egypt on the Mediterranean coast.
During the project presentation, Egyptian Prime Minister Mostafa Madbouly expressed his hope that “the industrial zone will become a successful model for partnership between Egypt and China, especially in important sectors such as electric vehicles, new and renewable energy, and construction materials.” Madbouly also recalled that “there are some important projects underway in the area of Egypt’s northwestern coast, including the city of Ras al Hikma, which require massive supplies of construction materials.” Chinese company CSCES is building a financial district project in the new administrative capital and a number of projects in New Alamein.
