Gafi gives preliminary approval to Sohag freezone + Jeddah Islamic Port gets a new service

Sohag is getting a new public freezone

Egypt’s Sohag is set to house a new public freezone after securing preliminary approval from the General Authority for Investment and Freezones (Gafi), Sohag Investors Association Chairman Mahmoud El Shendweily told Al Borsa. The zone aims to funnel fresh capital into Upper Egypt and scale up industrial exports by leveraging the governorate’s direct access to Red Sea shipping hubs. However, the final rollout hinges on overhauling the area's aging infrastructure to set up dedicated power, water, and natural gas networks.

The cost question is still hanging over investors. Manufacturers are pushing for the return of tax breaks, relief on overdue social ins. payments, and lower industrial land prices, El Shendweily said. He claimed land prices jumped from EGP 200 to EGP 1.1k per sqm — a figure still lower than the EGP 1.9k per sqm we reported last year but enough to echo the broader manufacturer backlash over surging land costs slowing new investment.

IN CONTEXT- The Sohag project aligns with a broader state drive to launch four new public freezones by the end of the year. As Egypt’s nine existing zones hit 95% capacity, Gafi plans to launch four new freezones in 10th of Ramadan, New October, New Borg El Arab, and New Alamein.

Another Red Sea trade lane docks in Jeddah

Mawani adds India to the mix: The Saudi Ports Authority (Mawani) added the new SRS shipping service to Jeddah Islamic Port — operated by the UAE shipping company ESL. The route connects the Red Sea hub with India’s Mundra Port and Djibouti Port, with a capacity of 2.1k TEUs.

The service adds another India-Red Sea-East Africa loop into Jeddah’s network — after launching the RS1 service last month, which links Jeddah with Oman’s Salalah Port and Djibouti Port, with a capacity of 1.7k TEUs.