28/02/2018 05:46 AST
An agreement to implement the first phase of development of an integrated industrial and residential zone in Sokhna, Egypt, has been signed in Dubai today between DP World, the Suez Canal Authority and the Suez Canal Economic Zone (SCZone).
The framework agreement, which establishes a clear timetable of actions required to execute the first phase of the project spanning 30 sq km, was signed by Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, and Admiral Mohab Mamish, chairman of the Suez Canal Authority and the SCZone.
This follows the signing of a partnership agreement at a ceremony in Sharm el-Sheikh, Egypt, on the sidelines of the World Youth Forum in November last year.
The joint venture between SCZone (51 per cent) and DP World (49 per cent) with DP World managing the zone, will result in the development a comprehensive industrial zone in Sokhna spanning 75 sq km, as well as increasing the capacity of Sokhna port and linking it to the industrial zone to fuel foreign investment and trade growth.
Both parties aim to sign agreements with companies that wish to establish facilities within the zone by March this year.
Bin Sulayem said: “We are pleased to move ahead with the development of this promising new project, which has the potential to substantially increase foreign investment into Egypt’s economy. In Dubai and at DP World, we have seen first-hand the power of trade infrastructure like free zones and seamless logistics corridors to drive economic growth – today, our flagship Jebel Ali Port and Free Zone together contribute to over 20 per cent of Dubai GDP. We hope to see Sokhna’s new industrial zone drive the same if not greater growth for Egypt. Our focus on long-term sustainable change will also ensure that this growth is beneficial for generations to come.”
Admiral Mamish said: “Our continued partnership reflects the deep-rooted trade ties between our countries and an ongoing strategy to further the growth of both our people and economies. With DP World, Egypt will harness all available resources and capabilities to ensure the success of this project, which will yield significant benefit for future generations. We will be targeting various industries to join the new industrial zone and look forward to realising this growth in the coming months.”
Business sectors to feature in the new industrial zone will include light and medium-sized industries, logistics, and service utilities. Targeted industries include medical, electronics and communications, construction materials, logistics, textiles, automotive parts, food processing, energy production components and petrochemicals.
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