Updates on zones, cargo, shipping, rail and trade from Kuwait, Egypt, UAE, and Iraq

ZONES-

#1- Two Chinese textile firms to set up shop in Egypt’s West Qantara: Egypt’s Suez Canal Economic Zone (SCZone) has inked two strategic agreements with Chinese textile firms for two projects in the West Qantara Industrial Zone with a total investment figure of USD 28 mn, according to a statement. The two new facilities will be fully dedicated to exports.

The details: Changzhou Kingcason Printing & Drying Company will establish a USD 24.5 mn facility spanning 60k sqm dedicated to textile production, including textile threads, dying, printing, knitting, and design, and Shanghai Honor and its UAE-based subsidiary Home Hub Textile will invest USD 3.5 mn to establish a 40k sqm factory for the manufacturing of fabric and home textiles.

Things are heating up in West Qantara: The SCZone has so far attracted 15 companies to West Qantara, signing some 14 agreements over the last 20 months for new projects with total investments of USD 542.3 mn, the statement notes. The projects include a USD 30 mn factory by Chinese textile manufacturer Kelida and a USD 70 mn factory by Chinese dyeing and finishing outfit Zhejiang Hengsheng.

#2- Egypt’s Suez Canal Economic Zone (SCZone) and Kuwaiti logistics giant Agility have inaugurated a new USD 60 mn customs logistics center, according to a statement released on Thursday. The facility — spanning 100k sqm — will include a secure storage facility and offer transportation services in a bid to ensure the seamless efficiency of operations. It will integrate a digital platform that will connect investors to a large network of Egyptian transport firms in a bid to offer more flexible logistics solutions.

Sounds familiar? The European Bank for Reconstruction and Development (EBRD) chose Agility’s automation solutions subsidiary Transfora to develop a digital operations platform for SCZone back in October 2024 to enable the SCZone to handle inquiries from potential investors and manage essential investor documentation.

#3- Egypt’s Prime Minister Moustafa Madbouly spent last Thursday inaugurating a handful of factories by local and international companies in SCZone’s Sokhna Industrial Zone. Here’s a rundown of the export-bound projects:

• Egypt’s Ceramica Cleopatra inaugurated the second phase of its factory in the Sokhna Industrial Zone, aimed at raising production and exports. The new phase — built on 500k sqm with investments of EGP 5 bn (c. USD 98.8 mn) — will produce ceramic and porcelain with an annual capacity of 80 mn sqm.
• Saudi’s Beam launches USD 40 mn expansion in its Egypt facility: CBoard — a member of Saudi construction materials manufacturer conglomerate Beam — inaugurated the expansion ofa cement board and wall manufacturing facility. The newly inaugurated expansion includes a cement board plant with a price tag of USD 25 mn and a gypsum panels manufacturing facility worth USD 15 mn, bringing total investments in the facility to USD 100 mn. Half of the company’s production is earmarked for export.
• India’s Abdos opened its USD 30 mn cosmetics manufacturing plant, with planned an annual production capacity of 50k tons of shampoos, creams, soaps, and other cosmetics. The project’s second phase is scheduled to go live in June. Production is planned for the local market and exports.
• Egyptian-German partnership opens USD 19.5 mn sanitary ware factory: AzuraEgypt's sanitary ware manufacturing plant also opened its doors in the Orascom Industrial Zone in Sokhna, with total investments of USD 19.5 mn. The Egyptian-German partnership project spans 70k sqm and will produce 160k pieces annually, earmarked for both the local market and exports.

CARGO-

#1- Iraq launches operation with TIR system: Iraq’s Transport Ministry has launched its first transport operation in partnership with International Road Transport Union (IRU) via their TIR system, according to a statement. The operation started from Turkey’s Mesrin port via Iraqi territory to Ibrahim Al-Khalil port, then towards Umm Qasr port before reaching its final destination at Abu Dhabi’s Khalifa Port.

What is the TIR system? It is the IRU’s global transit system that streamlines procedures for goods to be shipped from country to country, reducing administration work for customs authorities, according to the IRU’s website. The system also saves time and banknotes for transport operators and logistics companies.

#2- Menzies Aviation to provide Air India with cargo services: Menzies Aviation — the ground handling subsidiary of Kuwait-based Agility — has inked a three-year agreement with Air India to deliver ground handling and cargo services at eight locations across four continents, according to a statement released on Thursday. The firm is set to handle nearly 9k tonnes of cargo in the first year of the agreement, providing cargo warehouse handling services for Air India at Kuwait International Airport, the US’ Dallas Fort Worth International Airport, and Australia’s Sydney Airport and Melbourne Airport.

SHIPPING + MARITIME-

Egypt + Maersk partner up to enhance ship recycling: Egypt’s Maritime and Land Transport Holding Company has inked an MoU with shipping giant Maersk to enhance cooperation in responsible ship recycling (RSR) in the country, according to a statement released on Thursday. The project will help scrap ships at Damietta Port to provide raw materials for the iron and steel industry and reduce the import of scraps.

ICYMI: Egypt's Holding Company for Maritime and Land Transport and El Wehda Industrial Development teamed up in May 2024 to launch Egypt's inaugural ship scrapping and recycling yard.

Not Maersk’s first ship recycling project in the region: Maersk inked an MoU with Bahrain in July 2024 to develop and expand the ship recycling sector in the country to promote sustainable manufacturing and accelerate local economic growth.

E-COMMERCE-

Egypt’s Paysky launches e-commerce platform for Ugandan market: Egyptian digital payment platform Paysky and the fintech arm of South African telecom giant MTN are collaborating to launch a new application, Market by MoMo, to enhance the online shopping experience for Ugandan merchants and consumers, according to a statement (pdf) released last week.

TRADE-

Abu Dhabi and Italy ink cross-border investment partnership to boost business expansion: The Abu Dhabi Investment Office (Adio) and Italy’s Cassa Depositi e Prestiti (CDP), a national promotional institution, signed a pact to support Italian and UAE businesses expanding into each other’s markets, according to a press release from last week.

Under the partnership, Adio will connect Italian firms — including CDP-backed companies — with Abu Dhabi investment opportunities, while UAE businesses gain streamlined access to Italy’s market. The two entities will organize trade delegations, seminars, and knowledge-sharing programs to foster commercial ties.

In context: The UAE revealed plans earlier this week during President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Rome to invest USD 40 bn across strategic sectors in Italy. The two nations agreed to pursue a comprehensive partnership, formalizing over 40 agreements spanning data centers, AI, space tech, defense, cybersecurity, energy, health, and critical minerals.

RAIL-

UAE and Pakistan to cooperate on railways: Etihad Rail and Pakistan’s Railways Ministry signed MoUs to ramp up the operational efficiency of Pakistan’s rail network and explore the development of a new railway network to improve connectivity and support economic growth, according to a statement released last week.

OTHER STORIES WORTH KNOWING THIS MORNING-

• Gulf Air flies to London Gatwick: Bahrain’s flagship carrier Gulf Air launched a new service to the UK's London Gatwick Airport, operating three weekly direct flights. (Statement)
• Delta Airlines to land in Morocco: American carrier Delta Airlines will launch the first direct line between Atlanta and Marrakech in October 2025. (MAP)
• UAE opens Fujairah border crossing with Oman: The UAE’s Federal Authority for Identity, Citizenship, Customs, and Port Security has opened a border crossing between Fujairah and Oman. (WAM)
• India’s Akasa Air to boost flights to UAE: India’s budget airline Akasa Air launched daily flights linking Abu Dhabi with Indian cities Bengaluru and Ahmedabad. (Statement)