Egyptian Prime Minister Mostafa Madbouly has addressed widespread discussion surrounding the agreement signed between the Suez Canal Economic Zone (SCZone) and Abu Dhabi Ports Group for the “KIZAD East Port Said” project.
The Prime Minister clarified that the project is for an integrated industrial and logistics zone operating under the industrial developer system, one of 14 such developers in the economic zone.
Madbouly emphasized the distinct roles of the Suez Canal Authority and the SCZone, stating they operate independently to contribute to Egypt’s comprehensive development.
The agreement with Abu Dhabi Ports has triggered public discussion, with some expressing concerns about potential impacts on Egyptian control over the Suez Canal area, a key economic asset.
This debate was fueled by an initial lack of transparency regarding the agreement’s details, prompting the Prime Minister’s intervention to provide clarity.
The agreement between the SCZone and Abu Dhabi Ports comes as part of Egypt’s strategy to attract foreign investment and develop industrial and logistics zones, aiming to establish a sophisticated economic center that supports inter-regional trade and strengthens Egypt’s global logistics hub status.
However, the agreement has raised concerns about national sovereignty, particularly due to confusion between the jurisdictions of the Suez Canal Authority and the economic zone, leading to the government’s clarification.
Madbouly also recently reviewed the outcomes of the governmental offerings committee, which has finalized 21 deals worth $6 billion. He further highlighted a recent meeting with the President of the European Bank for Reconstruction and Development, noting Egypt’s status as the bank’s primary partner with a €13.8 billion investment portfolio.
These economic partnerships aim to enhance Egypt’s position as a regional industrial and logistics hub, he reassured, amidst questions about the impact of the ongoing debate on foreign investment confidence.
Established in 2015, the SCZone aims to develop the areas surrounding the canal and attract investments in industry, logistics, and energy, operating separately from the Suez Canal Authority, which manages the waterway itself.
