• Egypt signs a 50-year renewable agreement with Abu Dhabi Ports to build and run a new logistics and industrial zone

• First phase starts in late 2025, backed by $120 million in initial funding

• Project aims to boost trade, attract foreign investors, and create thousands of jobs

Egypt’s Suez Canal Economic Zone is set to welcome a major new investment from the United Arab Emirates. On May 4, the General Authority for the Suez Canal Economic Zone (SCZone) signed a 50-year renewable agreement with Abu Dhabi Ports Group to develop a large industrial and logistics hub in East Port Said.

The project covers 20 km2 with development to be carried out in several phases. Abu Dhabi Ports will handle everything from financing and construction to the long-term operation of the site. The first phase, set to begin by the end of 2025, will cover 2.8 square kilometers and includes plans for a 1.5-kilometer quay that could eventually house a multipurpose terminal.

The UAE group has committed $120 million for technical studies and to get this initial phase off the ground.

Egypt and the UAE have built strong economic ties over the past decade. Since 2013, both countries have signed a series of strategic partnerships, focusing on sectors like real estate, energy, finance, and agriculture. During the FY2023–2024, the UAE was Egypt’s top Arab investor, according to the Central Bank of Egypt.

Bilateral trade is also growing. In 2023, trade between the two countries reached $4.3 billion, based on figures from the International Trade Centre (ITC). Cairo hopes this new investment will not only strengthen those ties but also bring fresh momentum to its economy, attract more foreign investors, and open up new job opportunities.

The Suez Canal Economic Zone is already a magnet for investors. Between July 2022 and March 2025, it drew $8.3 billion across 272 projects, creating more than 40,000 jobs. The zone is also a critical artery for global commerce, with roughly 12% of all world trade passing through each year.

Ingrid Haffiny (intern)