The Head of the Suez Canal Economic Zone Authority will be announced by the end of this week, said Hani Sarie El-Din, Legal advisor and managing partner of Sarie El-Din & Partners.
In a panel discussing the Suez Canal corridor at the Euromoney conference on Monday, Sarie El-Din said the move would be followed by the formation of the authority’s board.
Sarie El-Din added that the Suez Canal Economic Zone Authority’s legal framework is now ready, following an amendment to the Economic Zones of a Special Nature Law issued in June. He added that the authority has also been accredited and established by a decree in August.
The authority will own state-owned lands and establishments in the zone. According to the law, the authority’s Chairman of the Board of Directors must submit an annual report to the Prime Minister on the zone’s activities.
The government has agreed on proposing a draft law of amendments on the Economic Zones of a Special Nature Law 83/2003. The law will be a legislative framework for investing in the Suez Canal, converting the area into an economic authority that has capabilities equivalent to ministries, governorates, and authorities.
Yehia Zaki, Managing director of Dar Al-Handasah, said during the panel discussion that in the next 15 years the Suez Canal Zone would need $30bn-$35bn in infrastructure investments, with $10bn allocated in the next five years.
The private sector, which will be attracted by the opportunities in there, will be needed to invest in the zone, Zaki added. He also said that the Suez Canal Project’s master plan has addressed the most effective sectors in the area.
The master plan focuses on three sectors, namely infrastructure, industrial and logistics sector, with each sector having its own five-year plan, Zaki pointed out. The Suez Canal Project’s objective is to generate high quality employment opportunities and convert the area into a world-class hub, Zaki said.
According to Sarie El-Din, companies that export from the zone will be exempted from taxes and customs, and that executive regulations of the original Economic Zones of a Special Nature Law will be used. The government should put in place a proper taxation system to attract investments to the zone, said Ahmed Radwan, Vice President of Mac Optic Group Worldwide.
Meanwhile, Mohamed Hashish, Vice Chairman of the Egyptian International Shipping Company (EISC), emphasised the significance of offering services to the shipping industry, to make the project more inclusive. He said that the availability of skilled labour for the projects in the zone will also challenge the project.
The Suez Canal area will be converted into an economic authority and will work as a single-window in completing all the investors’ procedures, separate from all ruling legislations covering Egypt’s economic activity.
