Egypt signs MoU with DP World to explore development of 500-acre public free zone
Egypt has formalized a memorandum of understanding (MoU) with DP World to explore the establishment of a public free zone within the New Administrative Capital. This initiative aims to target key industries such as electronics, automotive, apparel, and footwear, according to a statement.
The signing event was held today at the government headquarters in the New Administrative Capital, with Prime Minister Mostafa Madbouly in attendance. The MoU was executed by Khaled Abbas, chairman and managing director of the Administrative Capital for Urban Development (ACUD); Hossam Heiba, president, General Authority for Investment and Free Zones (GAFI); and Avnash Iyer, country head, DP World Egypt.
Plans for development outlined
In his remarks, Khaled Abbas outlined plans for the free zone, which will encompass approximately 500 acres within the designated land for the the Administrative Capital for Urban Development. This strategically located area spans a total of 1,958 acres along the Cairo-Suez Road, designed to facilitate industrial infrastructure development.
Next steps for project implementation
Abbas announced that technical and economic studies for the project will commence shortly, setting the stage for final contracts and the official launch of the free zone. He emphasized that this agreement is a vital part of the Administrative Capital for Urban Development’s vision to create diverse attraction points and enhance land utilization, ultimately fostering a modern industrial city.
Collaboration with DP World
DP World will spearhead the development of the public free zone in collaboration with the General Authority for Investment and Free Zones. The primary sectors targeted for the zone include electronics, automotive, fast-moving consumer goods, apparel, and footwear. Abbas noted that DP World will leverage its extensive global network to attract investment and facilitate trade within the project.
Incentives for investors
Hossam Heiba highlighted that the establishment of this public free zone is aimed at drawing further investments across manufacturing, trade, and logistics sectors. He pointed out that businesses operating in this zone will benefit from a host of tax and customs incentives afforded by law.
Strategic location advantages
Heiba also underscored the strategic location of the zone, which is in proximity to several key Egyptian ports, including Sokhna Port on the Red Sea and various Mediterranean ports. This advantageous positioning will enhance logistical efficiency, particularly through the Sokhna-Dekheila corridor.