CAIRO, May 4 (MENA) - Prime Minister Mostafa Madbouli witnessed Sunday the signing of an agreement for the development of the “Kezad East Port Said” zone, an industrial and logistics hub to be established through a partnership between Egypt’s General Authority for the Suez Canal Economic Zone (SCZone) and Abu Dhabi Ports Group.

The agreement grants Abu Dhabi Ports a 50-year renewable usufruct right to develop and operate the 20-square-kilometer zone near the Mediterranean city of Port Said.

The project is expected to enhance global trade flows between the East and the West by leveraging the zone’s strategic location at the northern entrance of the Suez Canal.

The signing ceremony took place in Cairo and was attended by senior officials from both countries, including Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel el Wazir, Minister of Electricity and Renewable Energy Mahmoud Esmat, UAE Minister of Industry and Advanced Technology Sultan Al Jaber, UAE Minister of Investment Mohamed Al Suwaidi, SCZone Chairman Walid Gamal El-Din, and Abu Dhabi Ports CEO Mohamed Juma Al Shamisi.

Under the deal, Abu Dhabi Ports will lead the development, construction, financing, and management of the industrial and logistics zone in multiple phases. The first phase, covering 2.8 square kilometers, is set to begin by the end of 2025, with an initial investment of $120 million earmarked for technical and market studies and infrastructure development. A 1.5-kilometer berth, potentially housing a multipurpose cargo terminal, is also planned.

SCZone Chairman Walid Gamal El Din described the project as a strategic milestone in deepening the longstanding partnership between Egypt and the UAE.

He emphasized the zone’s potential to support global supply chains, citing its unique location, advanced infrastructure, and integration with East Port Said Port, one of the most operationally ready deep-water ports in the Mediterranean.

“The agreement reflects the success of our integrated development model, which connects industrial areas with maritime ports, and reinforces SCZone’s role as a key hub for international manufacturing and logistics,” said Gamal El-Din.

For his part, Abu Dhabi Ports CEO Mohamed Juma Al Shamisi described the Kezad East Port Said project as a cornerstone of the group’s expansion strategy in Egypt.

This strategic cooperation underscores the strong economic ties between our nations. It will drive long-term economic growth, strengthen the Suez Canal’s global role, and expand trade between East and West, he said.

Abu Dhabi Ports' Regional CEO Ahmed Al Mutawa said the project would help attract foreign investment, boost exports, generate job opportunities, and accelerate technology transfer.

In a related development, Abu Dhabi Ports signed a memorandum of understanding with Hassan Allam Holding, a key development partner in Egypt, to explore further collaboration in port development and logistics zones, especially in East Port Said and other strategic locations across the country.

In December 2024, Abu Dhabi Ports had appointed Hassan Allam Construction to develop infrastructure at Safaga Port on the Red Sea coast. The project followed a 2023 concession agreement with Egypt’s Red Sea Ports Authority to build and operate the $200 million multipurpose Safaga Terminal, the first of its kind serving Upper Egypt. (MENA)

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