Egypt’s Suez Canal Economic Zone has entered into a long-term partnership with the United Arab Emirates’ AD Ports Group through a 50-year concession agreement. The deal focuses on the development of a 20-square-kilometre industrial and logistics zone located to the east of Port Said.
This marks a significant step in Egypt’s efforts to strengthen its strategic position as a regional trade and manufacturing hub. AD Ports will invest $120 million in the initial phase of the project, which spans 2.8 square kilometres and is expected to be completed over a three-year period. The development will include a 1.5-kilometre quay, with the potential addition of a multipurpose cargo terminal, enhancing the area’s capacity for maritime trade and logistics services.
Expansion strategy
The agreement reflects AD Ports Group’s broader strategy to expand its footprint in Egypt’s growing maritime and logistics sectors. Over recent years, the company has acquired several key Egyptian maritime firms, including Transmar, TCI, and Safina B.V. Additionally, it has secured long-term contracts to develop and operate cruise and cargo terminals at major Red Sea ports such as Safaga, Al Sokhna, Hurghada, and Sharm El-Sheikh. These moves are part of a coordinated push by Gulf countries to increase their economic influence in Africa through large-scale investments in infrastructure and energy.
This rising engagement is indicative of a wider trend among Middle Eastern nations to enhance their presence on the African continent. According to a recent report by Business Insider Africa, Gulf countries have either signed or shown interest in deals worth over $6 billion in African energy assets within a short time frame. This wave of investment aligns with a broader regional ambition to diversify economies and secure strategic assets. Data from the African Export-Import Bank shows that trade between Africa and the UAE rose by 38% over two years, reaching $86 billion by the end of 2023, highlighting the growing depth of economic ties.