KEZAD East Port Said unrelated to Suez Canal operations: SCZone

In its first official statement on the project — issued following the circulation of misleading claims online — the SCZone stressed that the deal concerns the development of an industrial and logistics zone within the SCZone’s East Port Said area and is unrelated to the canal’s shipping or navigational activity.

The 50-year renewable usufruct agreement, signed on Sunday, will see Abu Dhabi Ports Group act as master developer of the 20-million-square-metre site.

A total investment of $120 million has been allocated for market and technical studies.

The zone lies within the larger East Port Said Industrial Zone, which spans 64 million square metres.

Contrary to reports, the project is entirely separate from East Port Said Port, the SCZone said.

The agreement is governed by Law No. 83 of 2002 for special economic zones and its 2015 amendment, which governs all SCZone contracts with industrial developers and investors.

Under the deal, Abu Dhabi Ports will construct and manage a comprehensive industrial logistics hub.

Plans include internal infrastructure, such as power distribution, water treatment, and roadworks. The first phase, covering 2.8 square kilometres, is scheduled for completion by the end of 2025.

The development also includes residential units for workers and staff, training centres, healthcare facilities, and schools to establish the first integrated industrial community of its kind in the region.

The SCZone said the project is expected to contribute significantly to the socio-economic development of the Sinai Peninsula.

It is also set to promote industrial localization, facilitate technology transfer, generate employment, and boost state revenues through taxes, customs, and value-added services.

It further emphasized the initiative’s potential to enhance Egypt’s integration into global supply chains and strengthen its regional trade and logistics hub role.