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SCZone Records Impressive Growth with 57% Profit Increase

The Suez Canal Economic Zone (SCZone) continues to demonstrate positive growth, solidifying its position as a key competitive contributor to economy.
31.03.24 | Source: See news

In its latest board meeting for the fiscal year 2023-2024, and the second within 2024, chaired via video conference by the Minister of Planning and Economic Development, the SCZone board discussed significant topics, including the financial and promotional status of the zone from July 1, 2023, to the end of February 2024. New projects slated for future development were approved, notably a project for two electric transformer stations with a total capacity of 350 megawatts in the Suez area and a Turkish Oruçlu Holding DNM clothing company project in the Qantara West industrial area. An agreement with Orascom for Industrial Areas to develop an integrated industrial complex covering 3.3 million square meters was also endorsed.

A Leap in Revenues and Profits

Walid Gamaleldin, the chairman of the SCZone, reported a 54% increase in total revenue to EGP 5.3 billion, compared to EGP 3.45 billion in the previous fiscal year up to February 2023. Furthermore, net profits soared by 57% to EGP 3.74 billion, up from EGP 2.38 billion in February 2023, highlighting unprecedented growth in project revenues and new contracts within the industrial zones and port revenues.

Attracting 125 New Projects

Efforts to promote the SCZone have resulted in attracting 125 new projects in various sectors, with total investments of $2.56 billion. These projects, which include 60 with final approval and 65 preliminary approvals, are expected to create more than 21,000 direct and indirect job opportunities.

Major Projects Approval

Among the approved projects, Oruçlu Holding's and DNM's clothing project in the Qantara West industrial area aims to produce 7.2 million jeans pieces, planning to export 70% of its production. This project alone is expected to generate approximately 2,750 job opportunities. Additionally, the board approved the construction of two electrical transformer stations in the Suez area to support new and expanding projects, reflecting the increasing demand for energy.

Green Fuel Pathway Endorsement

The board also endorsed a memorandum of cooperation with the Port of Rotterdam, focusing on enhancing green fuel production within the SCZone for the European markets. This collaboration aims to establish a "Green Bunkering corridor" from Singapore to Rotterdam via the SCZone's ports, marking a pioneering move for green ship refueling across three continents (Asia, Africa, and Europe). This initiative takes full advantage of the SCZone's strategic location and its ports on the Red and Mediterranean Seas, including the exchange of expertise in port services digitization and increasing handling rates between the SCZone's ports and the Port of Rotterdam.