The British Egyptian Business Association (BEBA) organized a seminar titled “Major Projects in Egypt – Challenges and Opportunities”, where the participants stressed that the Egyptian market has many opportunities and potential for industrial localization. They also praised the continuous support for the ongoing mega projects, as well as the industrial and economic zones, as key developmental steps taken by the Egyptian government to attract investment and stimulate the economy.
Karim Helal, the president of Concord International Investments, said that the Egyptian economy can cope with the constant geopolitical and economic challenges at the local, regional, and international levels. He attributed this to the government initiatives, reforms, new legislation, and joint mega projects. He also pointed out some of the challenges, such as the rapid population growth, unemployment, and the need to create productive jobs for the youth.
Helal highlighted the Administrative Capital Development Company, the Turabul Industrial City, and the Suez Canal Economic Zone as three main drivers for the future of the Egyptian economy. He described the Investment Authority and Free Zones as the major supporters of the national mega projects.
Khaled Abbas said that the Administrative Capital for Urban Development (ACUD), which started from scratch in 2017, achieved pre-tax profits of EGP 20bn in 2022. He added that the company aims to reach EGP 26bn by the end of this year. Abbas expected the profits of the Company to continue growing next year, as the work in the second phase of the new 40,000-feddan project would start in the second quarter of 2024.
He explained that the New Administrative Capital is based on three pillars: being green, with vast green spaces that combine modern buildings and facilities with the latest technologies; being sustainable, with efforts to reduce waste and achieve a waste-free stage; and being smart, with a strategic plan to provide various services to citizens and investors.
Abbas confirmed that the main plan and design for the central park of the New Administrative Capital won the Landscape Sustainability Award in the Middle East for 2023 in the “Gardens and Entertainment” category. He noted that the new smart city was built with a vision to provide a quality living place for citizens and investors and that transportation has become ideal with the relocation of 100,000 government employees.
He added that the New Administrative Capital is being referred to as an example in local and international events. He said that the company is in talks with four of the world’s top consultants to implement the second and third phases and that the company plans to start its activities in the industrial zone project next year.
Sherif Hamouda, Chairperson of GV Developments, the company behind the Tarboul Industrial City project, shared his vision for creating the first integrated and smart green industrial city in Egypt. He emphasized the city’s strategic location, covering more than 109 million square meters in Giza, only 5 kilometers away from the Nile, and close to several major roads and ports. He also explained how the city follows the principles of recycling, reusing, and reducing waste to achieve zero waste production. The city has partnered with Orange and TAQA Arabia, as well as a leading insurance company, to provide various services and solutions for the industrial sectors.
Hamouda highlighted the importance of industrial localization, saying that importing has always been the easy option, but now people realize the need to develop local industries. The city will host about 3,000 factories in different fields, such as food, technology, electronics, marble, building materials, textiles, handicrafts, plastics, and chemicals. It will also have a complex for light industries and an area for large industrial complexes.
He revealed that 18 factories have already been established in Tarboul, along with a dry port, a university area, a research and training center, a handicraft training center, and storage and cooling areas. The city will also offer various residential and housing options, from standalone houses to apartments of different sizes and designs.
He added that Tarboul supports small and medium-sized enterprises through a new initiative called “San’a”, which aims to increase the contribution of national industry to the GDP. The initiative will provide ready-made industrial complexes for small and medium-sized projects in Tarboul, with a 0% down payment plan over 10 years in collaboration with the central bank.
Hamouda said that about 10 million square meters have been completed in the city so far, and more details will be announced in June.
Ibrahim Mustafa, Deputy Head of the General Authority for the Economic Zone of the Suez Canal, announced that the region approved 43 major projects in industrial zones worth $4.6bn in the last three months. He said that the authority has a list of targeted industrial sectors for the coming period, with green hydrogen being a top priority for the economic zone.
Ahmed Sherin, Deputy Head of the General Authority for Investment and Free Zones, said that the authority encourages and supports the private sector to play a bigger role and lead the Egyptian market. He stated that “Egypt is the land of opportunities,” and that the government is working hard to create clear and real investment opportunities. He also said that the authority is always ready to overcome any investment challenges, noting that these challenges are not only related to local factors but also to geopolitical and global economic factors.
