Egypt and UAE ink three project agreements worth USD bns of investments

Emirati investments are flowing into Egypt: A series of meetings between Egyptian officials and Emirati government and business figures produced three new joint projects set to inject USD bns into Egypt’s industrial sector.

THE LOGISTICS ZONE-

Fujairah has inked an MoU with Egypt to build a USD 3 bn petroleum logistics zone at Al Hamra Port on the Mediterranean coast, according to a statement by the Egyptian Cabinet. The construction of the zone is expected to take three years after kicking off in 1H 2025, following the completion of technical studies, a senior Egyptian official told Asharq Business.

There’s a lot to be ironed out: The emirate is currently negotiating with Egypt’s petroleum authority to decide on whether to develop the zone jointly at Al Hamra Port in El Alamein, or whether the emirate will acquire the plot independently for a fee, the official revealed.

We knew this was coming: Last April, the emirate signed a preliminary agreement with Egypt and Adnoc petrochemicals JV Borouge to set up a freezone focused on the production, storage and trade of oil and its derivatives. The emirate also discussed investing in Egypt’s petroleum sector during a visit by Egyptian Petroleum minister Karim Badawi to Fujairah last month. The two sides talked about partnering to develop joint projects, aimed at enhancing the Egyptian sector’s capacities.

Fujairah will help ramp up Egypt’s energy supply: Under the agreement, Fujairah might export petroleum products to the local Egyptian market through Fujairah Oil Industry Zone’s partnerships with global oil and gas suppliers, by “offering a competitive edge to the Egyptian General Petroleum Corporation,” the statement reads.

THE INDUSTRIAL ZONE-

The two sides are also in talks over setting up an Emirati industrial zone in East Port Said, aimed at meeting local market needs and ramping up exports, according to a statement from the Industry and Transport Ministry. The zone would leverage the geographic advantages of the area and its access to railways linking the zone with ports on the Mediterranean.

A variety of projects are on offer: The zone would include solar and wind energy projects alongside wastewater treatment and seawater desalination plants and an aluminum manufacturing complex, the statement said. The statement also suggested the government was exploring the option of making the zone a freezone or special economic zone exempt from customs duties.

THE MANUFACTURING FACILITY-

Hisense inks agreement for USD 38 mn manufacturing facility: Chinese electronics and household appliance manufacturer Hisense and the UAE’s FBB Tech have inked a contract with Chinese industrial developer Egypt TEDA to establish a USD 38 mn electronic devices manufacturing facility in the China-Egypt TEDA trade zone in Ain Sokhna, according to a statement.

The details: The project will span 110k square meters and is poised to produce 2.5 mn units a year. The first phase of the project includes manufacturing TVs, monitors, and audio recorders, with 30% of production earmarked for the local market and 70% designated for exports to countries in the Middle East, East Africa, and Europe.

CHINA ALSO WANTS IN ON THE INVESTMENT SPREE-

Another Chinese project incoming? Chinese textile and garment manufacturer Jiangsu Lianfa Textile is looking to set up a USD 500 mn integrated complex for textile and ready-made garment production in Egypt, according to a statement.

The specs: Spanning 350k square meters, the planned facility is set to include several production lines. The Chinese company intends to export 90% of the facility’s production.

GAFI wants more: The investment authority has plans to organize forums and promotional tours to capture the attention of more emerging markets-focused Chinese investors, according to the General Authority for Investment and Freezones head Hossam Heiba.