In a landmark move to deepen economic cooperation between the UAE and Egypt, AD Ports Group and Egypt’s Suez Canal Economic Zone (SCZONE) have signed a 50-year renewable usufruct agreement to develop the KEZAD East Port Said Industrial and Logistics Zone. This transformative project, located near the coastal city of Port Said on the Mediterranean Sea, aims to unlock the region’s strategic potential as a key node in global trade routes.
The agreement was signed in Cairo and witnessed by high-ranking dignitaries, including Egyptian Prime Minister Dr. Mostafa Madbouly, UAE Minister of Industry and Advanced Technology Dr. Sultan Al Jaber, UAE Minister of Investment Mohamed Hassan Alsuwaidi, and senior officials from both nations. The 20 km² industrial and logistics park will be developed in phases, with an initial 2.8 km² Phase 1 launching by year-end 2025.
Strategic Investment Anchored by UAE-Egypt Ties
This flagship development reflects the growing strategic partnership between Egypt and the UAE. Speaking at the signing, Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, noted the broader implications of the project.
“KEZAD East Port Said marks a milestone in UAE-Egypt economic ties. It reinforces our commitment to developing an integrated ecosystem of trade, transport, and industry that fosters long-term economic growth and strengthens the Suez Canal’s role in supporting global trade.”
With an estimated investment of $120 million for Phase 1 alone, the zone is expected to host major regional partners, including Egypt’s Hassan Allam Holding, and serve as a platform for job creation, exports, technology transfer, and industrial innovation.
Boosting SCZONE’s Global Standing
Waleid Gamal El-Dien, Chairman of SCZONE, highlighted the zone’s potential to serve as a hub for international investment and logistics:
“This strategic launch reinforces SCZONE’s position as a pivotal destination for global industrial activity. Our unique location, advanced infrastructure, and investor-friendly regulatory framework provide a compelling case for companies seeking to tap into East-West trade routes via one of the world’s most vital maritime corridors.”
SCZONE has integrated industrial zones and affiliated ports, including East Port Said Port, renowned for its deep-water berths, high-capacity operations, and efficient transportation links. The new KEZAD zone will directly benefit from this connectivity, especially with integration between East and West Port Said Ports forming a robust logistics network.
Complementing Egypt’s Industrial Strategy
The agreement builds on a series of major investments by AD Ports Group in Egypt since 2022, including the acquisition of Transmar, TCI, and Safina B.V., as well as concessions to operate cruise and Ro-Ro terminals in Safaga, Hurghada, Sharm El Sheikh, and Ain Sokhna. In December 2024, Hassan Allam Construction was appointed to build a new multi-purpose cargo terminal in Safaga, part of a $200 million project secured through Egypt’s Red Sea Ports Authority.
Ahmed Al Mutawa, Regional CEO of AD Ports Group, explained that the East Port Said initiative will act as a gateway to global markets:
“KEZAD East Port Said is designed to attract industrial and logistics investment, foster exports, upskill talent, and enhance business accessibility. It reflects our long-term vision to build a thriving business ecosystem in Egypt and leverage the Suez Canal’s natural advantages.”
Pivotal for Global Supply Chain Resilience
Admiral Mohamed Ahmed Mahmoud, Vice Chairman of SCZONE for the Northern Area, reiterated that the zone is part of a comprehensive strategy to integrate maritime transport with industrial development. He emphasised that the flexible regulatory model and strategic location will help attract high-value investments and create a new benchmark in regional trade facilitation.
“This project marks a qualitative leap in our efforts to transform the northern Suez Canal region. It offers a model of integrated logistics and industry that aligns with Egypt’s economic vision.”
A Magnet for Global Investment
SCZONE’s integrated approach has already attracted 274 investment projects worth $8.3 billion across sectors in just under three years. Its four industrial zones—East Port Said, East Ismailia, Qantara West, and Sokhna—are seamlessly connected to six advanced seaports, covering 455 km². The KEZAD East Port Said zone builds upon this foundation, offering unmatched geographic and logistical advantages.
As part of the broader trend toward regional manufacturing hubs, this project supports both nations’ leadership goals and offers a sustainable model for shortening global supply chains. It is poised to strengthen Egypt’s role as a central player in international trade, industry, and logistics.
