AD Ports Group to build and operate logistics park near Suez Canal

This was part of a 50-year renewable usufruct agreement signed by the Abu Dhabi company with the General Authority for Suez Canal Economic Zone (SCZONE).

The KEZAD East Port Said Industrial Zone will be a unique location on the Mediterranean Sea and is expected to become a key hub for international trade and investments serving the East-West trade routes, right at the entrance of the Suez Canal.

Suez Canal mega project

AD Ports Group will develop, construct, finance, operate, and manage the industrial and logistics zone in phases. The first phase will cover a total of 2.8 sqkm at an estimated cost of US$120 million. This will cover the market and technical studies and development over the next three years.

Construction on Phase 1 is expected to start by the end of this year.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, commented: “KEZAD East Port Said is a milestone that highlights the strong economic relations between the UAE and Egypt. In line with the vision of our wise leadership, this strategic cooperation is another sign of our Group’s growing focus on Egypt, where we continue to enhance and develop our integrated trade, transport, and industrial ecosystem.

“This infrastructure investment will provide a long-term source of economic growth for Egypt, while enhancing the Suez Canal role in promoting and supporting the East-West trade corridor.”

The significance of the project can be gauged by the presence of Dr Mostafa Madbouly, Prime Minister of Egypt, as well as Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and Mohamed Hassan Alsuwaidi, UAE Minister of Investment, at the signing ceremony.

Waleid Gamal El Dien, Chairman of the Suez Canal Economic Zone, said: “The launch of this project in the East Port Said Industrial Zone represents an important strategic step that reaffirms the depth of the strong fraternal relations and the growing strategic partnership between the Arab Republic of Egypt and the United Arab Emirates, as well as the prominent position held by SCZONE as a pivotal global trade hub for industrial and logistics activities.

“This project enhances SCZONE’s ongoing efforts to support global supply chains by providing a competitive and integrated investment environment, underpinned by advanced infrastructure, and a unique geographic location, connecting three continents via one of the world’s most vital maritime routes.”

Admiral Mohamed Ahmed Mahmoud, Vice Chairman of SCZONE for the Northern area, added: “We are working on developing an integrated model that combines industry, maritime transport, and logistics services within a flexible and investment-friendly regulatory environment. East Port Said Industrial Zone stands at the heart of this model due to its strategic location and its direct connection to the modern East Port Said Port, a key hub in global trade.”

“Therefore, this project represents a qualitative leap in the development of the northern part of SCZONE, not only in terms of the scale of anticipated investments but also in the advanced industrial and logistical activities to be implemented.”

AD Ports Group also signed a memorandum of understanding (MoU) with Hassan Allam Holding, which is one of the group’s development partners in Egypt, to develop and invest in the industrial zone and explore other projects. Last year in December, Hassan Allam Construction, the construction arm of Hassan Allam Holding, was appointed by AD Ports Group to build the new multipurpose cargo terminal in Safaga, on Egypt’s Red Sea coast.

Since 2022, AD Ports Group has invested significantly in Egypt, acquiring Transmar, a regional shipping company; TCI, a port operator and stevedoring company, and in 2024, Safina BV, a provider of maritime agency and cargo services. The group has also secured long-term concessions to develop and operate three cruise terminals at the Red Sea ports of Safaga, Hurghada, and Sharm El Sheikh.