• Projects include steel pipe, tire, and fiber-optic cable factories
• SCZONE offers incentives; aims to boost jobs, tech transfer, local content

Egypt’s Kemet Industries has signed a memorandum of understanding with the Emirati-Chinese consortium Al Qalaa Red Flag to develop three industrial projects in the Suez Canal Economic Zone (SCZONE), the authority said in a statement on Wednesday. The investments are estimated at about $3.5 billion and will be located in the Ain Sokhna industrial area, 116 km southeast of Cairo.

The first project will establish a seamless steel pipe plant with an annual capacity of up to 250,000 tonnes. The facility aims to support Egypt’s major infrastructure and urban development projects and reduce its reliance on imported materials.

The agreement also covers the construction of an automotive tire factory with a planned output of 12 million to 15 million units per year, and a fiber-optic cable plant to serve Egypt’s expanding digital infrastructure sector.

“The partnership between Kemet Industries and Al Qalaa Red Flag will boost industrial investment, promote technology transfer, and strengthen local content while creating jobs for young Egyptians,” said SCZONE Chairman Waleid Gamal El-Dein.

Created in 2015 following the expansion of the Suez Canal, the SCZONE offers investors tax incentives, customs exemptions, and access to ready industrial land and utilities, alongside simplified administrative procedures compared with Egypt’s standard regulatory framework.

Located on a strategic maritime corridor linking Africa, Asia, and Europe, the SCZONE handles about 12% of global trade. Between July 2022 and March 2025, it attracted $8.3 billion in investments across 272 projects, according to official data.

Walid Kéfi