The Chairman of the SCZone, Waleid Gamal al-Dien, commented on the signing of an agreement by the UAE’s AD Ports Group with the General Authority for the Suez Canal Economic Zone to develop and operate the 20-square-kilometre KEZAD East Port Said Zone.
During a telephone interview with TV host Lamis al-Hadidi on the “Last Word” (Kalema Akhera) TV show, Gamal al-Dien said that KEZAD is part of the East Port Said Industrial Zone of SCZone.
He noted that it is an area close to East Port Said Port and one of the integrated industrial areas within SCZone.
Usufruct Term for AD Ports
Gamal al-Dien revealed that the agreement is based on a 50-year usufruct, and that the AD Ports Group, as an industrial developer, must prepare the infrastructure to attract specific investments in specific sectors in the area, taking advantage of the proximity of the area under agreement to East Port Said.
He continued, “Thus, investments will benefit from direct and indirect tax incentives, in addition to international agreements to meet the needs of the local market.”
The Chairman of the SCZone added, “In addition, this area, and the economic zone in general, will be used as a platform for export to global markets.”
“According to the agreement, they will pay for the area’s internal infrastructure investments. This will be implemented in phases, then linked to external facilities that connect it to the SCZone. The area will then be divided into various industries, including large and small factories, services, and ready-made factories,” he explained.
Value of the usufruct agreement
Regarding the value of what will be paid to the Egyptian government for the usufruct right, Gamal al-Dien said that, “A percentage of 15 percent of the company’s internal revenue. Therefore, the government receives a percentage of any amounts remitted to the company by investors.”
Regarding the expected volume of investments flowing into the region through AD Ports, he said, “There is no specific expected figure, but the 20 square kilometers is a large area. Therefore, there is no specific figure, but investments are estimated in the billions.”
The AD Ports Group and SCZONE signed on Sunday a 50-year renewable usufruct agreement, to develop and operate a 20km2 industrial and logistics park near the Egyptian coastal city of Port Said on the Mediterranean Sea.
Everything you need to know about the SCZone and AD Ports usufruct contract Egypt Independent.
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