An agreement to implement the first phase of development of an integrated industrial and residential zone in Sokhna, Egypt has been signed in Dubai between DP World, the Suez Canal Authority and the Suez Canal Economic Zone (SCZone).
The framework agreement, which establishes a timetable to execute the first phase of the project spanning 30 square kilometres, was signed by Sultan Ahmed Bin Sulayem, Group chairman and CEO of DP World and Admiral Mohab Mamish, chairman of the Suez Canal Authority and SCZone.
This follows the signing of a partnership agreement at a ceremony in Sharm el-Sheikh, Egypt on the sidelines of the World Youth Forum in November last year.
The joint venture between SCZone (51 percent) and DP World (49 percent) with DP World managing the zone, will result an industrial zone in Sokhna spanning 75 square kilometres, as well as increasing the capacity of Sokhna port.
Both parties aim to sign agreements with companies that wish to establish facilities within the zone by March.
Bin Sulayem said: “We are pleased to move ahead with the development of this promising new project, which has the potential to substantially increase foreign investment into Egypt’s economy.
"In Dubai and at DP World, we have seen first-hand the power of trade infrastructure like free zones and seamless logistics corridors to drive economic growth – today, our flagship Jebel Ali Port and Free Zone together contribute to over 20 percent of Dubai GDP. We hope to see Sokhna’s new industrial zone drive the same if not greater growth for Egypt.”
Mamish added: “With DP World, Egypt will harness all available resources and capabilities to ensure the success of this project, which will yield significant benefit for future generations. We will be targeting various industries to join the new industrial zone and look forward to realising this growth in the coming months.”
Business sectors to feature in the new industrial zone will include light and medium-sized industries, logistics, and service utilities.
Targeted industries include medical, electronics and communications, construction materials, logistics, textiles, automotive parts, food processing, energy production components and petrochemicals.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.