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What are the incentives of the SCZone? - Daily News Egypt

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What are the incentives of the SCZone?

The SCZone has many investment incentives. The SCZone was established as an administration body with full authority over the Suez Canal axes with regards to all projects and activities within the geographical borders of the project, stepping above the governorates where these projects are. This eliminates government bureaucracy and gives investors the flexibility needed to …


The SCZone has many investment incentives. The SCZone was established as an administration body with full authority over the Suez Canal axes with regards to all projects and activities within the geographical borders of the project, stepping above the governorates where these projects are. This eliminates government bureaucracy and gives investors the flexibility needed to complete their projects.

The SCZone also has the power of all ministries, governorates, and government agencies within its geographical borders.

The establishment of the SCZone aims at developing the entire region to enhance investment opportunities in all economic sectors, including logistics and industrial services in accordance with the highest international standards, as well as creating a favourable business environment that encourages investors, both foreign and domestic, to establish companies in the region to benefit from all the benefits and incentives provided by law.

What is the SCZone?

The Suez Canal Economic Zone (SCZone) consists of several regions and ports, each with opportunities in industrial and commercial establishments, infrastructure, real estate development, logistics, amenities, and technology.

1: Northwest of the Gulf of Suez:

The area is considered the first economic zone established in Egypt according to law No. 83 for 2002 for special-nature economic zones. The goal of establishing the zone is to benefit foreign investors, develop industries and exporting to collect hard cash, develop high-tech industries, and establish and improve the market economy in Egypt.

The development of the zone in the northwest of Suez aims to offer an environment attractive to light and medium industries, as well as logistical services, which will stimulate the economic activity in the region and create jobs.

The northwest of the Suez zone lies in Suez govenorate in the Ain Sokhna area, next to the Ain Sokhna port. The land allocated for the project’s first phase amounts to 20.4 square kilometres.

The economic zone in the northwest of the Gulf of Suez has a strategic location on the main roads for international trade. It is also close to the new Ain Sokhna port, making the Ain Sokhna area the gate of Egypt from and to the Middle East and Asian countries. The economic zone is 120 km away from southeast Cairo and 45 km from Suez.

2: East Port Said area:

The area is now being developed to become a main supply centre next to a logistics hub. The area is built on 75.5 square kilometres next to the East Port Said area. According to the general plan, 40 square kilometres have been allocated for trade and light and medium industries.

The expansion of East Port Said Port in the northwestern part of the region stimulates the industrial zone and creates the opportunity to desalinate water, build power stations, and include investment opportunities in the region. This is in addition to the real estate development and residential projects in East Port Said and Bardwil Lake, which is partially open to the Mediterranean Sea.

West Qantara area:

This is a new residential community with the establishment of light industry factories and logistics centres that facilitate access to the Suez Canal. It is located near agricultural land 30 km away from North Ismailia on the Port Said port.

West Qantara has many advantages in terms of proximity to the fertile Delta region and is ideal for agricultural business.

Currently, approximately 13.6 square kilometres are available for development in an area that has good access to water, electricity, logistical areas, and drainage. The logistical institutions also provide services such as warehousing, transportation, distribution, and shipping.

4: East Port Said Port:

It is the hub of major international and domestic freight shipping at the northern entrance of the Suez Canal. East Port Said Port is also characterised by a deep plunge, which enables it to accommodate large vessels, making it one of the world’s 40 busiest ports in the world and the fastest growing.

The proposed expansions cover 26 square kilometers, will provide a wide range of investment and development opportunities for the port, and will develop logistics services, which will increase the total area of ​​the port to reach 70 square kilometres.

Ain Sokhna Port:

The port of Ain Sokhna is located on the west coast of the Gulf of Suez, 43 km south of Suez City. It is on a total area of 22.3 square kilometres.

As a result of the expansion of the surrounding areas, the port quickly became a major industrial centre serving local and international markets.

Expansion plans include the operation of new container terminals, general cargo terminals, dry cargo and liquid cargo terminals, logistics services, warehousing and distribution centres, dry port construction, and investment in modernising port vehicles and container handling equipment.

6 West Port Said Port:

West Port Said Port is a shipping centre located on the main international sea route between the countries of Europe and South Asia. West Port Said Port occupies 2 square kilometres at the northern entrance of the Gulf of Suez from the Mediterranean Sea.

7: Adabiya Port:

The port of Adabiya is located on the western shore of the Gulf of Suez, 10 km from south of Suez. The facilities of the port are set to handle large quantities of unpackaged cargo.

It covers an area of 1.8 square kilometres. The port has nine marinas with a total length of 1,840 metres. It has the ability to handle dry unpackaged and liquid cargo with a capacity of 60,000 tonnes.

More investments in the port are directed to the establishment of additional terminals to deal with dry, liquid, and general cargo and container shipments.

8: Arish Port:

Located on the eastern Mediterranean coast, Arish Port has basins for ships extended over 40,000 metres. The port is allocated for cargo, fishing, and tourism. The port plays a crucial role as the industrial and trade port for North Sinai and the Gaza Strip.

9: El Tor Port:

El Tor Port is a strategic port of South Sinai overlooking the eastern bank of the Gulf of Suez. The bulk of exports exported from the port of El Tor are composed of minerals and shipments of dry packages. This commercial port includes stations for dry packaged goods, general cargoes, and containers, as well as fishing boats and marinas.

10: Eastern Ismailia:

A new centre for high-tech industries, as well as planning to contain scientific research institutions and educational institutions, is located east of Ismailia, 10 km away from the east of the Suez Canal, covering 71 square kilometres.

With the extension of electricity and water, East Ismailia is a promising area for light and medium industries, research and development centres, as well as services and commercial projects. Currently, a tunnel is being built to link East Ismailia with the Egyptian mainland, which will reduce transport time from east to west.

Advantages, guarantees, and exemptions:

The area has many incentives compared to other zones in Egypt, including a 10% rate unified income tax (20% outside), which is imposed on profits of companies and individuals’ incomes, as well as revenues from lands and non-residential buildings.

There is also 5% of income tax (10-20% outside) for dealing through the one-stop shop, which saves time for investors when dealing with different government bodies.

There is a higher committee overseeing the tax system within the zone. There is also a special customs department under the supervision of the Supreme Customs Committee. The zone has the lowest production cost in the Middle East and Africa in a number of sectors.

There is also easy access to the domestic market. Fees are imposed on sales in the local market on the value of imported materials only.

Clusters:

The northwest Gulf of Suez zone aims to develop the suggested industries, which will enable certain industries to achieve more productivity and efficiency in terms of time management and operation costs through establishing research centres and improving the timing needed for small and medium enterprises (SMEs) to reach the international markets.

Amongst the most important industries and activities to be established in the zone are car assembly, chemicals and petrochemicals, construction, building materials, spinning, weaving, textiles, clothes, agriculture development, food industries, appliances and electronics, logistical and storage services, and pharmaceuticals.

https://ww.dailynewssegypt.com/2017/09/18/what-are-the-incentives-of-the-sczone/
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