South Korea, Egypt partner to develop economic zone in Gargoub

CAIRO – 28 November 2023: The Ministry of Transport in Egypt has inked a memorandum of understanding (MoU) with the South Korean government. The agreement, represented by South Korean company STX, paves the way for the development of Gargoub port and its industrial logistics zone through the establishment of an economic zone.

The Minister of Transport, Kamel Al Wazir, elucidated that the Gargoub Port Company will have the responsibility of equipping, managing, operating, and maintaining the Gargoub sea port, including its docks and infrastructure, in compliance with standard technical specifications. As part of the collaboration, STX will conduct a comprehensive feasibility study on the Gargoub Port development project, covering all its stages.

The Gargoub Economic Zone is envisioned as a pioneering model for the creation of an integrated economic, commercial, and urban logistical center. Its establishment is poised to play a pivotal role in supporting the Egyptian economy and fostering trade between Egypt, Europe, countries in the Mediterranean basin, and African nations.

This MoU aligns with the directives of President El Sisi to position Egypt as a global hub for trade and logistics. Additionally, it falls within the framework of the government's strategic plan to develop the Matrouh region, underscoring the commitment to enhancing economic growth and regional development.

As of June 2023, Korean companies have invested a total of $845 million in Egypt, highlighting their strong interest in the country's business landscape. With approximately 40 Korean companies currently active in Egypt, this partnership further solidifies the economic cooperation and mutual benefits between the two nations.