Turkey’s Polaris Parks set to invest EGP 10.5 bn for two industrial zones in Egypt

Polaris Parks to develop two industrial zones in Egypt: Industrial land developer Polaris Parks will commit EGP 10.5 bn (c. USD 217 mn) to develop two major industrial parks in Egypt’s New Administrative Capital and New October City, General Manager Bassel Shoirah told Al Arabiya.

What we know: The first MoU sees Egypt allocating 1.4 mn sqm of land in New 6 October city, with EGP 4.5 bn investment poured by Polaris for the first phase of the project, according to Shoirah. Polaris Parks has already received the plot for the planned project in New 6 October city last week, with the industrial developer set to break ground on the project in early 2025, Shoirah said. It is allocating EGP 6 bn to develop a 2 mn sqm plot for the New Administrative Capital, he said, yet said that a timeline for the project was not yet determined.

A boon for investments: Polaris Parks aims to attract local and foreign investments surpassing USD 1 bn for its planned New 6 October zone within two years in a bid to position Egypt as a regional industrial hub, according to Shoirah. It aims to finalize the first phase of the zone within two to three years, he told Al Arabiya earlier. The planned zones would help position Egypt as a regional industrial hub, according to a statement by Polaris Parks.

About Polaris Parks: Polaris Parks was launched as a joint initiative by then Turkish President Abdullah Gul in 2008. Its partners include Egypt’s private contractor Siac Construction, Saudi family-owned investment holding company Zamil Group and others, according to its we bsite.

Polaris has an appetite for more: Polaris is seeking more plots from the Egyptian government to allow it to lure in more foreign investments to the local market, Shoirah said. “Each 1 mn sqm we develop attracts investments averaging USD 1.5 bn,” he said. The company also has plans to invest EGP 5 bn in the local market to set up five industrial complexes in Obour, Tenth of Ramadan, Badr City, New Cairo, and Sadat City, Shoirah said last week.

Background: Polaris was among four industrial developers that received land for new industrial zones from the New Urban Communities Authority in New 6 October City in May. It recently announced plans to invest EGP 5 bn in Egypt to set up five industrial complexes in Obour, Tenth of Ramadan, Badr City, New Cairo, and Sadat City. It is the latest company to jump onto the bandwagon of smart industrial parks — clusters of factories and plants built on the principles of sustainability, integration, resource efficiency, and waste reduction.