Other BriefingsAn Introduction To The Suez Canal Economic Zone
In a region pulsating with economic vibrancy, the Suez Canal Economic Zone (SCZONE) distinguishes itself as an investment destination to watch. Its strategic location, state-of-the-art infrastructure, enticing incentives, and unwavering commitment to sustainability make SCZONE an unparalleled choice for those seeking investment opportunities in the Middle East and North Africa. Established in 2015 as the cornerstone of economic development in Egypt, this sprawling economic hub spans 455 square kilometres along the Suez Canal axis, housing pivotal ports, and diverse industrial zones, and laying the groundwork for a green energy revolution.
Here’s why SCZONE deserves a prominent place on your investment radar:
Vision for growth
At the heart of SCZONE lies a strategic vision conceived to foster economic growth in Egypt. Boasting integrated industrial clusters, global logistics, and a green energy hub, SCZONE has been attracting investors with significant opportunities across multiple sectors. A commitment to world-class infrastructure, streamlined administrative procedures, and a cutting-edge one-stop shop elevates it as a prime destination for forward-thinking businesses.
Strategic location
Situated on the banks of the Suez Canal, SCZONE occupies a critical juncture where about 12% of all global trade meets. In addition to its unique location, the SCZONE includes world-class infrastructure, an international road network, and mega tunnels that facilitate the movement of goods, linking the industrial zones and its ports. With a focus on localisation and support for global supply chains to job creation, and a pivotal role in the green economy transition, it is a proponent of economic sustainability. SCZONE is also an invaluable gateway to global markets, underlining its significance in the development of international trade and supply chains.
Economic sustainability
The SCZONE’s vision, encapsulated in the slogan “integrated route – one destination,” is driven by fundamental pillars. From industry localisation and support for global supply chains to job creation and a pivotal role in the green economy transition, and emphasizing support for small and medium enterprises, innovation, and entrepreneurship, the SCZONE offers a holistic approach to sustainable economic development.
Industrial zones and ports integration
Comprising four industrial zones and six seaports overlooking the Red Sea and the Mediterranean Sea, SCZONE provides seamless interplay between industrial zones accommodating various industries, logistics zones facilitating supply chain linkages, and ports connecting to global markets positions it as a versatile and comprehensive investment destination. Being situated in Egypt it has several free trade agreements that allow access to more than 2 billion global consumers. These include Egypt’s membership of the Greater Arab Free Trade Agreement as well as significant trade profiles with China, India and ASEAN.
Localisation of industries
The SCZONE also has an ambitious plan to localise about 21 investment sectors, between industrial and services, by 2025. This comprehensive plan is meticulously tailored to align with the specific demands of local and regional markets. Among the most prominent of these sectors are green hydrogen, solar panels, and industry. Cars, electric batteries, tires, the agricultural business sector, textiles, pharmaceutical and active ingredient industries, chemicals, data centers, logistics, and ship catering services.
Integration
Comprising four industrial zones and six seaports overlooking the Red Sea and the Mediterranean Sea, the SCZONE’s integration extends beyond its geographical and infrastructural advantages. It presents a compelling case with competitive investment incentives, including tax exemptions and customs duty reductions. Within 16 months, the SCZONE has attracted investments totalling US$4.6 billion in 90 industrial projects and 7 additional projects in its affiliated ports.
Green economy
SCZONE’s commitment to the green economy is a crowning achievement. From providing ship bunkering services with green fuel to pioneering green ammonia shipments, it is at the forefront of sustainable practices. SCZONE has successfully inked 19 active memorandums of understanding, with 11 transformed into framework agreements. The total anticipated investments stemming from these agreements exceed US$85 billion, with an expected production volume of 17 million tonnes annually. Furthermore, SCZONE has achieved notable success by exporting the inaugural green ammonia shipment to India from the Egypt Green Hydrogen facility situated in SCZONE’s Sokhna Industrial Zone. SCZONE’s East Port Said port successfully executed the first green bunkering operation in the Middle East and Africa for the world’s inaugural ship operating on green fuels in August 2023.
Dezan Shira & Associates assists foreign investors into Asia and has a partner firm in Cairo. For assistance please contact asia@dezshira.com
