The Suez Canal Economic Zone in Egypt has entered into a 50-year concession agreement with Abu Dhabi Ports Group from the UAE, aiming to create a logistics and industrial hub covering 20 square kilometers to the east of Port Said, as announced by the group’s managing director during a televised statement on Sunday.
Under the terms of this agreement, Abu Dhabi Ports will invest $120 million in preliminary development stages and feasibility assessments for the initial phase, which will cover 2.8 square kilometers and is expected to be developed over the next three years, according to reports from Reuters.
The initiative will feature a 1.5-kilometer quay and plans for a possible multipurpose cargo terminal, as detailed in a statement released by the Egyptian cabinet.
This agreement represents the latest in a series of strategic investments by Abu Dhabi Ports aimed at enhancing its footprint in Egypt’s maritime and logistics industries.
Over the past three years, the company has acquired several maritime companies in Egypt, including Transmar, TCI, and Safina B.V.
Furthermore, Abu Dhabi Ports has obtained long-term permissions to develop and operate cruise terminals at significant Red Sea locations, including Safaga, Hurghada, Al Sokhna, and Sharm El-Sheikh, in addition to plans for constructing and managing a multipurpose port in Safaga and a Ro-Ro terminal in Al Sokhna.
Strengthening Ties Between Gulf States and Africa
Countries in the Middle East have significantly increased their investments in Africa, reflected in a surge of interest.
Recently, reports indicated that regional nations have either finalized or shown interest in investment deals involving at least $6 billion in energy assets across Africa, demonstrating their growing investment appetite on the continent.
This intensified engagement is part of a broader strategy by Gulf nations to enhance their energy influence in Africa. A report from the African Export-Import Bank has revealed that bilateral trade between Africa and the UAE alone rose by 38% over the past two years, reaching $86 billion by the close of 2023.