Abu Dhabi-based ports and logistics giant AD Ports Group has signed a 50-year concession deal with Egypt’s Suez Canal Economic Zone to set up a 20 sq km logistics and industrial zone east of Port Said on the Mediterranean Sea.
Under the agreement, AD Ports Group will develop, build, finance, operate, and manage the industrial and logistics zone in phases.
The company has committed $120m for initial development and feasibility studies in the first phase, which covers an area of 2.8 sq km to be developed over three years.
The development of the first phase will be anchored by key potential clients and partners, including one of the region’s foremost construction and development groups, Hassan Allam Holding, AD Ports said, adding that it expects the build-out to start by the ned of this year. Hassan Allam is also responsible for AD Ports’ new multipurpose terminal in Safaga, on Egypt’s Red Sea coast.
AD Ports has a presence in more than 50 countries and controls nearly 250 ships, 34 terminals, in addition to an economic and industrial land bank of over 550 sq km. The group has invested heavily in Egypt since 2022, acquiring a regional shipping player, Transmar, a port operator and stevedoring company, TCI, and a maritime agency and cargo services provider, Safina.
“KEZAD East Port Said is a milestone that highlights the strong economic relations between the UAE and Egypt,” said managing director and CEO of AD Ports Mohamed Juma Al Shamisi, adding: “This infrastructure investment will provide a long-term source of economic growth for Egypt, while enhancing the Suez Canal role in promoting and supporting the East-West trade corridor.”