Egypt’s Suez Canal Economic Zone has signed a 50-year concession agreement with the UAE’s Abu Dhabi Ports Group (AD Ports) to establish a 20-square-kilometre logistics and industrial hub east of Port Said, the group’s managing director announced in a televised address on Sunday.
As part of the deal, AD Ports will invest $120 million in initial development and feasibility studies for the first phase, which spans 2.8 square kilometres and is set to be developed over the next three years, Reuters reported.
The project will include a 1.5-kilometer quay, with plans for a potential multipurpose cargo terminal, according to a statement from Egypt’s cabinet.
This agreement marks the latest in a series of strategic investments by AD Ports to expand its presence in Egypt’s maritime and logistics sectors.
Over the past three years, the company has acquired several Egyptian maritime firms, including Transmar, TCI, and Safina B.V.
Additionally, AD Ports has secured long-term concessions to develop and operate cruise terminals at key Red Sea ports, Safaga, Hurghada, Al Sokhna, and Sharm El-Sheikh, and to construct and manage a multipurpose port in Safaga and a Ro-Ro terminal in Al Sokhna.
Middle Eastern countries have been ramping up their interest in Africa through a wave of investments.
Just last week, Business Insider Africa reported that nations from the region have either expressed interest in or closed deals totalling at least $6 billion in African energy assets in recent weeks, a clear sign of their growing appetite for investments on the continent.
This heightened engagement aligns with a broader push by Gulf states to expand their energy footprint in Africa. According to an African Export-Import Bank report, bilateral trade between Africa and the UAE alone surged 38% over two years, reaching $86 billion by the end of 2023.