Egypt targets $3.9B foreign investments from SCZONE

CAIRO - 23 November 2023: The Suez Canal Economic Zone (SCZONE) in Egypt is setting a target to attract foreign investments amounting to $3.9 billion during the fiscal year 2023/2024, according to statements made by the Executive Director of SCZONE, Ahmed Saad, in a recent interview.

This target comes after SCZONE garnered investments worth $1.3 billion in the first four months of the current fiscal year.

The SCZONE is one of Egypt’s main sources of foreign investments, with a total of $3.6 billion already secured in the previous fiscal year 2022/2023.

Egypt is actively working towards attracting $25 billion in direct foreign investments within the next five years, as announced by the CEO of the General Authority for Investment and Free Zones (GAFI). It is expected that the GAFI will draw in approximately $12 billion in foreign investments during the ongoing fiscal year, representing a 20 percent increase from the previous year.

The SCZONE recently announced plans to launch 11 new projects in collaboration with China, with an investment value of $15.6 billion. This initiative follows the promotional tour conducted by the Chairman of SCZONE, Walid Gamal El Din, which served to strengthen bilateral relations and attract foreign investors.

As part of the agreements signed during the promotional tour, Xinxing Cathay International Group, a prominent Chinese company, pledged to invest approximately $1.08 billion in constructing two factories within the SCZONE. The majority of this investment, $930 million, will be allocated to the development of a state-of-the-art steel factory, while $147 million will be dedicated to establishing a factory that specializes in producing cast iron pipes.

Moreover, the SCZONE inked several agreements for the establishment of new energy projects. Notably, a Memorandum of Understanding (MoU) was signed with Chinese energy firms to launch a groundbreaking green ammonia and green hydrogen project in the Sokhna Industrial Zone. This project has estimated investments of $6.75 billion, aims to promote sustainable and environmentally friendly practices within the SCZONE.