DP World inks agreement to develop economic zone in Egypt
DP World has signed a partnership agreement with the Suez Canal Economic Zone to develop an integrated industrial and residential zone at Sokhna in Egypt
DP World has signed a partnership agreement with the Suez Canal Economic Zone (SCZone) to develop an integrated industrial and residential zone at Sokhna in Egypt.
Under the terms of the agreement, a joint venture between SCZone and DP World will be created. The former will take a 51% share of the venture, while the latter will take 49%.
DP World said in a statement that it will manage the zone, which is expected to commence development in Q1 2018.
According to the company, the special economic zone (SEZ) in Sokhna will span 9,500ha and include industrial and residential areas. The development is expected to create 400,000 jobs, with medical, electronics and communications, construction materials, logistics, textiles, automotive parts, food processing, energy production components and petrochemicals among its targeted industries.
The residential zone, which will cover 20ha, will feature coastal villas, residential units, shopping and administrative centres, entertainment facilities, mosques, schools, hospitals, clubs, and green spaces, said DP World.
Sultan Ahmed Bin Sulayem, group chairman and chief executive officer of DP World, said: “This partnership demonstrates the commitment of DP World to support the growth of Egypt’s economy and reflects the trust we place in the determination of the government to make the project a success.
“The development of the zone will support the sustainable growth of the country and help it attract more business investment. It will also help transform the Suez Canal into a major trade and business hub in the region, given its strategic location and role as an artery for global trade.”
He added: “We are looking forward to working with the SCZone through this joint venture to develop the project using our international expertise and know-how of trade and logistics across six continents, to add value to the Egyptian economy and leave a legacy for future generations.”
Meanwhile, Admiral Mohab Mamish, chairman of the Suez Canal Authority and Chairman of the Suez Canal Economic Zone (SCZone), said: “This signing builds on the historic relations between Egypt and the UAE, and is aligned with the vision of President Sisi for the development of trade in the region.
“The project includes a comprehensive economic zone in Sokhna including an industrial free zone and a number of development projects that will boost the national economy and create jobs for Egyptian youth. Today’s signing concludes months of work of the joint committee that has been working closely with the leadership of both countries and consultants to make this happen. This is an important step in Egypt’s industrial and economic growth journey, while taking advantage of the strategic location of the Suez Canal.”