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The economic zone of the Suez Canal intends to establish an investment arm

UNITED STATES (OBSERVATORY NEWS)

Egypt wants to create an investment arm to direct money to projects on the canal to take advantage of the proximity to one of the busiest shipping lanes in the world, said Yahya Zaki, head of the General Authority for the Economic Zone of the Suez Canal.

The government has directed billions of dollars of investments for years to modernize the infrastructure around the Suez Canal, in an effort to attract the sectors of logistics, marine, manufacturing, information technology and energy.

The region, which is one of the giant projects of the state, has been on the agenda for at least 20 years, but it has received a new boost since Abdel Fattah El-Sisi became president in 2014, and the government hopes to become a major driver of growth and job creation.

“We would like to see a financial arm for this … that could go into a partnership with developers,” Zaki said on Sunday during a meeting of the American Chamber of Commerce in Egypt. You will go to banks: lending banks, investment banks, etc. to create a certain opportunity. ”

“We are now working on its scope and establishment. The intention is to create an investment and commercial arm. ”

The Suez Canal economic zone consists of six ports and four separate industrial zones along the waterway through which about ten percent of global trade passes, or 18,000 ships annually.

Zaki, who took office five months ago, said the channel’s economic zone is working with financial institutions and banks to generate returns from land, infrastructure, and liquidity flows.

“We can go to private bonds, we can go to multilateral development banks, we will go to commercial banks.”

The government has constructed tunnels below the canal and designs highways, desalination plants, electricity generation and water treatment plants. It is expanding its natural gas network to boost supplies from new onshore and offshore fields.

The region has projects to build charging stations in East Port Said and El-Sukhna ports and the development of other ports in Adabiya, West Port Said, Al-Tur and Al-Arish.

The Suez Canal Economic Zone signed a contract last month with a consortium led by Toyota Tsusho, owned by the Japanese Toyota Group, to construct a car reception station in East Port Said Port at an investment cost of approximately $ 160 million.

Zaki said it was also close to agreeing with Dubai World on a deal to develop port areas with a potential investment of $ 600 million.

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