A Turkish industrial zone in Egypt back in the cards? Turkish firm DoğuşConstruction and Trade has signed an MoU with the transport ministry’s Egyptian Group For Multipurpose Terminals to establish an industrial and logistics zone in Gargoub on the country’s northwest coast with over USD 7 bn in estimated investment, according to a statement from the ministry.

Déjà vu? Enterprise heard from industry insiders in February that Egypt and Turkey were set to revive plans to set up Turkish industrial zones following President Recep Tayyip Erdogans’ visit to the country. We also heard from meetings preceding Erdogan’s visit between Trade Minister Ahmed Samir and Turkish business representatives that a Turkish industrial zone would house industries including aluminum production, automotive, machinery and equipment, and advanced tech industries.

The details: The project plans to establish a commercial port in addition to logistics and free zones, which will all be linked to the railway network, a freight station, a yacht marina, a multipurpose terminal, and an industrial zone. It will take six months to complete studies and obtain the required approvals for the project. A final contract is expected to be signed by the end of the year, with operations in the multipurpose terminal and the logistics area expected to kick off in 2026.

The why: In addition to warming political relations helping to pave the way for investments between Egypt and Turkey, Ankara sees an important window to boost its exports to Africa through Egypt, especially due to its membership of Comesa and the African Continental Freetrade Agreement, Egyptian-Turkish Business Council member Majd El Manzalawy told Enterprise earlier in the year. This geographical advantage, coupled with an investor-friendly environment — thanks to the government’s golden license program and the wide availability of raw materials — also positions Egypt as an attractive investment destination for Egypt, House Economic Committee member Attia El Fayoumi told Enterprise.

It’s not only Turkish companies that are interested in Gargoub: South Korean trading company STX Corporation announced in November that it will work with the government to upgrade Gargoub port, establish an industrial-logistics zone in the area, and buildan oil pipeline connecting Libyan fields to the port as well as residential and tourist areas. Belgian dredging and offshore energy contractor DEME also has a USD 3.1 bn project in the pipeline to produce green hydrogen and its derivatives near the port.

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