Ismailia Free Zone draws global attention with new investments
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The Ismailia Free Zone is rapidly transforming into a manufacturing and export powerhouse, attracting the attention of international investors eager to tap into Egypt’s strategic advantages. With nine Chinese and Turkish companies committing a combined $41.6 million to new projects, the zone is not only gaining financial momentum but also creating opportunities for thousands of workers.
New investments fuel industrial growth
The latest inflow of foreign direct investment covers a diverse range of industries—from ready-made garments and sportswear to specialized spare parts for heating and plumbing systems. These projects, slated to begin operations in 2026, are expected to generate more than 16,000 direct jobs, marking a significant boost for local employment in the Suez Canal region.
According to Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), this surge of investment reflects the government’s focused efforts to build a business-friendly environment that combines low operational costs, export incentives, and modern infrastructure.
Export-focused strategy gains traction
All of the newly announced textile and garment projects are committed to exporting 100% of their output, aligning directly with Egypt’s “Investment for Export” strategy led by the Ministry of Investment and Foreign Trade. This approach not only supports Egypt’s ambition to become a global manufacturing hub but also drives foreign currency inflows and positions the country favorably in regional supply chains.
Infrastructure development attracts demand
The physical expansion of the Ismailia Free Zone has been equally significant. In 2024, the zone completed infrastructure development on 60 feddans (roughly 63 acres) allocated for industrial use. An additional 70 feddans are now being prepared for 2025 to meet growing investor demand.
Ayman Saleh, head of the General Free Zone in Ismailia, emphasized that this ongoing development reflects both domestic and international interest in locating manufacturing operations near the Suez Canal—one of the world's most vital trade arteries.
Egypt's strategic location becomes a selling point
Representatives of the investing companies cited Egypt’s strategic geography and preferential trade access as major drivers behind their decisions. With trade agreements in place that connect Egypt to African, European, Middle Eastern, and even Latin American markets, the country offers manufacturers a gateway to billions of consumers.
Additionally, streamlined licensing processes and GAFI’s investor support services have made it easier for foreign companies to scale operations quickly. Some firms have already announced plans to relocate significant parts of their production lines to Egypt, underscoring a long-term commitment to the market.
A regional manufacturing hub in the making
The developments in the Ismailia Free Zone represent more than isolated projects—they signal a shift in how Egypt is positioning itself in the global industrial landscape. With a focus on exports, investor facilitation, and regional connectivity, the zone is emerging as a model for attracting high-impact investments in sectors that can drive both economic growth and job creation.