Egypt signed new investment contracts on Tuesday in the area of Ain Sokhna in the southern area of the Suez Canal Economic Zone (SCZone) with six companies on an area of 16.2 million sqm.
The chairperson of the Suez Canal Authority (SCA), and head of the SCZone, said that the investment cost of these new contracts and settlements are estimated at EGP 3bn.
The signing was done in the presence of the chairpersons of the six companies and Prime Minister Sherif Ismail as well as the Minister of Investment and International Cooperation, Sahar Nasr, as part of the government’s efforts to develop the SCZone and solve the outstanding issues with some investors in the area as well as increase the investments of these companies in the area.
Ambassador Ashraf Sultan, the official spokesperson of the cabinet, said that the prime minister has stressed the state’s interest in developing the SCZone, explaining that the cabinet will be discussion the executive regulations of the investment law in their final form by the end of next week.
Nasr emphasised the keenness of her ministry to cooperate with the SCZone to overcome the obstacles facing investors in order to help solve the outstanding issues and attract new investments to the area.
Mamish stresed that the SCA is taking two parallel tracks. The first aims to settle the outstanding issues with investors, and the second aims to attract new investments to the SCZone.
The settlements included two contracts with local investors on an area of 12.3 million sqm, with Orientals Company for Industrial Projects on an area of 10.5 million sqm, and Elsewedy on an area of 1.7 million sqm.
He added that the new contracts include investment areas of 3.900 million sqm with four companies. They are Soukhna Refinery and Petrochemicals Company on 2.2 million sqm in the activity of petrochemicals; the Egyptian Chinese Company to invest on an area of 1.25 million sqm as an industrial developer, in addition to Raya for Manufacturing and Logistical services on an area of 100,000 sqm for coal storage, as well as Port Said Steel company on an area of 38,500 sqm to establish a steel factory.
The economic zone had signed 15 contracts and reconciliations last month with the Suez Industrial Development Company (SIDC). It also activated an agreement to finance the Sonker’s bulk liquids storage terminal at Sokhna Port with foreign direct investment of $500m.
Ahmed Abu Hashima, the chairperson of Egyptian Steel, said that the contract aims to establish a factory affiliated to National Port Said Steel Company, estimated at EGP 5.5bn, and provides 5,000-6,000 direct and indirect jobs. It will be opened in December with a capacity of 830,000 tonnes of billets and 550,000 tonnes of steel bars.
Medhat Khalil, chairperson of Raya Holding, said that the contract also stipulates the establishment of a storage area for coal and raw materials in conditions friendly with the environment and in accordance with international standards. It also includes the establishment of a special zone for feeder industries, as well as a zone for manufacturing and assembling light lorries.