Qatar to build Egypt's largest industrial zone

State-owned Qatari Diar Real Estate and Investment Company plans to build Egypt’s largest industrial zone focusing on textiles, food processing, petrochemicals and engineering.

Qatari Diar yesterday signed a memorandum of understanding (MoU) with the Egyptian state-owned Industrial Development Corporation to work together on the zone’s development, reported the Financial Times.

Qatari Diar is looking to attract around $2.8 billion worth of investment in the zone, which will be located at Borg El Arab on the Mediterranean coast.

The project is being billed as the biggest ever investment of Gulf money in the Egyptian industrial sector and is expected to create up to 133,000 jobs and generate $5 billion from production over 10 years.

Over half the zone's output is to be targeted at exports to markets in the US, Europe, the Middle East and Africa.

Singapore firm Jurong International Holding, which specialises in managing industrial zones, will oversee the project.

The agreements follows last week’s announcement that Jordan’s Al Tagamoat Investment plans to attract $400 million in investment through setting up an industrial zone in Egypt.

Egypt has also signed a MoU with Russia to create heavy industries industrial zone.

Qatari Diar’s project in Egypt is just the latest move by Qatar state-owned investment companies to increase their portfolios internationally.

In April Qatari Diar acquired the 13-acre Chelsea Barracks site in London for around $1.18 billion, and the Three Delta fund recently purchased a $2.8 billion stake in UK supermarket giant Sainsbury.

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