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Ministry of Trade, Industry expanding establishment of foreign industrial zones - Daily News Egypt

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Ministry of Trade, Industry expanding establishment of foreign industrial zones

The Ministry of Trade and Industry seeks to expand the establishment of integrated industrial zones to deepen local industrialisation and industrial development, through the use of international expertise via foreign investors wishing to establish industrial cities in Egypt, such as Russia, France, Turkey, and China. The Egypt-France Business Council’s head, Fouad Younis, said negotiations for …


The Ministry of Trade and Industry seeks to expand the establishment of integrated industrial zones to deepen local industrialisation and industrial development, through the use of international expertise via foreign investors wishing to establish industrial cities in Egypt, such as Russia, France, Turkey, and China.

The Egypt-France Business Council’s head, Fouad Younis, said negotiations for the establishment of the French industrial zone in Alexandria were progressing with France’s Ministry of Finance and Economy.

He predicted that this year will see the signing of contracts for the establishment of the zone on 25 feddans close to the Alexandria Port, especially as French President Emmanuel Macaron is expected to visit Egypt in the first half of the current year.

The value of French investments in Egypt has reached about €4bn, up 12% from last year, which offer 40,000 jobs through 160 companies in many sectors, mainly tourism, air and sea transport, energy, environment, building materials, and cars.

Meanwhile, 18 Turkish investors are negotiating with the Industrial Development Authority (IDA), to establish an engineering industrial zone on 1 sqkm in the cities of 10th of Ramadan or Badr.

Hamada Al-Agwani, executive director of the Egyptian-Turkish industrial city project, said that the National Bank of Egypt (NBE) is considering entering as a 50% shareholder in the project’s investments of EGP 3bn.

The industrial city project aims to establish 1,300 factories to create 20,000 jobs.

Russia is seeking to establish an industrial zone in East Port Said with investments of EGP 6.9bn.

Alaa Ezz, general secretary of the Russian-Egyptian Business Council, said the Russian industrial zone had been negotiated three years ago, especially as Egypt seeks to boost economic relations with Russia in the coming period.

The area is expected to be built on 5.25 sqkm in three phases. The first phase will begin with 1 sqkm by the Russian industrial developer, which will provide 7,300 jobs in construction and building. The Russian industrial developer will work in parallel to attract Russian companies and investors during 2018 and 2019.

With the end of the implementation of the first phase, the second phase includes 1.6 sqkm, which would create 10,000 jobs to be completed by 2022, followed by a 2.65 sqkm area to create 17,000 jobs in infrastructure projects. The entire zone will be completed in 2031, 13 years after the beginning of the first phase. Then, Russian companies will set up projects and industrial clusters that would provide nearly 35,000 jobs.

The most important industries to be established within the Russian zone are the manufacture of sensors, air conditioners, and motors; construction and building equipment; glass and ceramicswood and paper industries; and feeder industries for vehicles and tires.

Meanwhile, the Ministry of Trade and Industry announced the implementation of the first phase of a Chinese textile industries city on an area of 3.1m sqm in the industrial city of Sadat.

Mohamed El-Morshedi, chairperson of the Textile Industries Chamber of the Federation of Egyptian Industries, said that the aim of the city is to reduce Chinese spinning and weaving imports, and to expand the establishment of Egyptian-Chinese factories to manufacture the production requirements.

The city will include 568 factories with a total paid-up capital of $2bn over seven years, including 87% foreign investments and 13% local investments.

The city will provide direct work opportunities for up to 160,000 technicians with a total production of $9bn annually.

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https://ww.dailynewssegypt.com/2018/05/27/ministry-of-trade-industry-expanding-establishment-of-foreign-industrial-zones/
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