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ABOUT SCZONE02

SCZONE STRATEGY 2020-2025

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INVESTMENT OPPORTUNITIES01

ABOUT SCZONE▪ Promising Investment Destinationwith total area of 461 km2 including:▪ 4 Industrial Zones▪ 6 Sea PortsIndustrial Zones▪ Distributed around the maininternational maritime route▪ Almost 12% of the internationaltrade pass through the Suez Canal▪ Over 18,000 ships passing throughannually and 10% of seaborne trade

Sea Ports

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SCZONE FACTS

461

4

MILLION M2

INDUSTRIALZONESTOTAL AREA

6SEA PORTS

143

INDUSTRIALDEVELOPERS

MAIN PORTSOPERATORS

250OPERATIONALESTABLISHMENT

18bnUSDTOTALINVESTMENTCOST100KDIRECT JOBOPPORTUNITIESREGIONAL CONTEXT & CONNECTIVITY

Mediterranean

Gulf ofSuez

AFRICAN ROADS NETWORK011

Cairo - Cape Town

2

Algeria - Lagos

3

Tripoli - Cape Town

4

Cairo - Dakar

5

Dakar - Mombasa

6

Beira - Lobito

SCZONE

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MARKETS ACCESSIBILITY

EUTA100% exemption of customs

Free trade agreementsensuring access to 2billion consumers, inaddition to access to thepromising domesticmarket.

QIZ

GAFTA

100% exemption of customs

100% exemption of customs

MERCOSUR100% exemption of customs

AfCFTA & COMESAWorld’s largest free trade agreement across 54nations100% exemption of customs

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SOKHNA INDUSTRIAL ZONE

▪ One of the largest and integrated zones as the industrial, logisticaland residential areas are connected to the Sokhna Port andAdabeya Port.
▪ An industrial development zone with an area of 210km² located45km from the Suez, and 120km southeast of Cairo.
▪ Capacity to host over 85k job opportunities.
▪ 12 industrial developers taking part at developing the land area.

▪ More than 250 projects are established and in operation, creatingover 30k direct and indirect job opportunities.
Land uses for Sokhna Industrial Zone:Heavy Industries

Chemicals &Petrochemicals

Energy ComponentsManufacturing

Automobile Assembly &Parts

Construction andBuilding Materials

Textiles & Ready-MadeGarments

Home Appliances &Electronics

Oil Refining

Food Processing

Pharmaceuticals

Logistics Activities &Courier Services

Refinery Products

SME Cluster Park Development (All Value Chains Activities)

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PORT SAID INDUSTRIAL ZONENorth▪ Promising investment zone with total area of 63 km2, located10km away from the northern entrance of the Suez Canal.

Mediterranean SeaEAST PORT SAID / Integration▪ The rising star with integrated port/ logistics/ industrial zones toserve Mediterranean Sea area, East Africa, Middle East andEastern Europe.
▪ The industrial zone earmarked for light and mediummanufacturing, commercial and business activities with thecapacity to create over 80k jobs.

East Port

LogisticAreas

Potential manufacturing activities and a wide range of industrial clusters in:Automotive Assembly/Feed Industry

Engineering Equipment& Machinery

Robotics/ Automation

Construction & BuildingMaterials

Textiles & Ready-MadeGarments

Home Appliances &Electronics

Electric Power Industry

Pharmaceuticals

ICT/ Hardware

Food Processing

Logistics Hub &Services

Value Add Activities

SME Cluster Park Development (All Value Chain Activities)

Industrial AreaPort Said Tunnels

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QANTARA WEST INDUSTRIAL ZONE

▪ Envisioned as a vibrant new community next to the SuezCanal with approximately 13 km2 land area available forinvestment in an area well supplied with water,electricity and sewage.
▪ Located close to farmland in Ismailia and SharqiaGovernorates on the road to Port Said-Ismailia, QantaraWest benefits from proximity to the fertile Delta and isideal for agribusiness.
▪ Suitable logistics enterprises include warehousing andfulfillment services, transportation and distribution,freight forwarding, Pick & Pack, to name but a few.
The targeted industries:Light Industries

SMES’ Parks

Agri-BusinessFeeding &Integrated Industries

Food Processing &Beverages

Textiles & ReadyMade Garments

Related Logistics/Dry Port

Support Services forIndustries

Commercial Uses

Community Facilities

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ISMAILIA EAST INDUSTRIAL ZONE (TECHNOLOGY VALLEY)▪ A new urban society that depends oneconomic activity resulting from theinteraction of investment, educationand scientific research based on hightech industries.
▪ Total area of 70 km2 strategically located7 km away from the Suez Canal, on itsEast Bank, and 3km from Ismailia newtunnels.
The targeted industries:HighTechnologyIndustries

RenewableEnergyIntegratedIndustries

Commercial &CommunityUses

Educational & Scientific research institutions

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SOKHNA PORT

Location

Egypt’s main gateway to the GCC, East Africa and Asia.
Located at the southern entrance to the Suez Canal On thewest coast of the Gulf of Suez.
23 km217 m650 m diameterContainer 2100 mGeneral Cargo & Dry Bulk 750 mRORO 200 m

PortSpecifications

AreaPort DepthTurning CircleQuay Lengths

Port Utilities

▪
▪
▪
▪
▪

Container Terminal total capacity of 2.9mn TEUs.
Back Yards total capacity of 3.0 mn tons/annum.
Dry Bulk Terminal total capacity of 6.0 mn tons/annum.
Ro-RoLiquid Bulk Terminal capacity of:‐ 100k m3 of fuel oil‐ 150k m3 of LPG‐80k m3 of Ammonia▪

Construction of:‐ 12 km quays with 17 m depth.
‐ Cargo Terminals total area of ​5.6 km2‐ Logistic areas total area of ​5.3 km2‐ Main internal road linking the back yards with theport, with a length of 14 km.
‐ 10 km of railways to be connected to (Sokhna/NewAlamain Electric Train) under construction.

OngoingDevelopmentWork

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ADABEYA PORT

Location

Located at the northern end of theGulf of Suez, 17 km away from SuezCityPortSpecifications

AreaPort DepthTurning CircleQuay Lengths

Port Utilities

Port MaximumCapacity▪
▪
▪
▪
▪

1.1 km29-14 m650 m diameter1.45 km

General Cargo Terminal.
Liquid Bulk/ Dry Bulk TerminalRo-RoThe Ports receives small containersReceiving all types of Cargos likeDry Bulk, Liquid Bulk, GeneralCargo and Containers.

11 million Ton/annum

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EAST PORTSAID PORT

▪ Located alongside the Suez Canal, with sheltered deep water facilitiescapable of accommodating very large vessels▪ Integrated with the East Port Said Industrial Area

▪ EPS Port is well-positioned as a major transshipment hub andgateway port
▪ An autonomous navigational channel of 5 miles enables fast andsmooth access to & from the Mediterranean Sea separates from thenorthern entrance of Suez Canal▪ The EPS port encompasses a major container terminal operated byAP-Moller with Maersk lines since 2004

SCCT Containers Terminal2.4km

SCCT Phase III950mRORO Terminal 600m

General CargoTerminal 900m

▪ Other projects under contracting include (general cargo terminal,RO/RO terminal, dry-bulk terminal and a second container terminal)

Dry Bulk Terminal 500m

▪ Recent expansion added quay lengths of 5 km of new Q-wallsreaching 7.4 km in total with a basin of 550 m in width & 18.5 m ofdraft▪ The port’s layout allows for accommodating a modern port receptionfacility (PRF) in compliance with MARPOL annex 1

Containers Terminal1.5 km

Phase Two of Port Development6.5km

Logistical Area 2

Logistical Area 3Industrial Zone

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WEST PORTSAID PORT

▪ West PortSaid Port is situated at the Northern entrance ofthe Suez Canal at the crossroad of the main world seatrade route between the East and West via the Suez Canal▪ A cosmopolitan trading hub occupying 2 km2 with 4 km ofberths and depths ranging from 10 to 16 m

▪ Total annual capacity of 13 mn tons and with a maximumcapacity of 900,00 TEU/annum▪ The Port’s throughput is the multi-purpose cargo withaverage handling exceeding 8.7 mn tons/annumThe port contents:▪ Container, general cargo & RORO terminals, in addition toship services and petroleum services facilities▪ A Cruise terminal with 3 berths totaling 400 m in lengthand 10 m of depth. The terminal is well-furnished with fullyequipped reception halls.
▪ Facility for berthing yachts

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AL-ARISH PORT

▪ Located at the Mediterranean Sea, at the northern east coast ofSinai▪ 150 km from East PortSaid Port
▪ Used for handling dry-bulk, general cargo as well as fishing▪ Total area of 65,000 m2 and quay wall total length of 369 m, thehandling for General Cargo 1.2 mn tons/annum▪ The Port is currently undergoing a major development plan withtotal area of 1.56 km2 and quay wall total length of 5,600 m andalongside depth is 14 m01

AL-TOR PORT

▪ Al-Tor port is located on the Red Sea at the eastern coast of the Gulfof Suez Gulf (about 280 km southwards Suez City), land area100,000 m2, with sheltered yard 5,600 m2▪ Services are confined between general cargo & maritime services,the quay wall length is 75 m capacity for 380,000 tons/annum

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DIRECT INCENTIVES0%CUSTOMTAX▪ 0% Customs on all project’s components imported from abroad under the conditionof exporting the final products▪ In the case of exporting to the local market: custom tax will be applied on theimported components only0%VAT▪ 0% VAT applied whether importing from local or foreign markets to SCZONE, on allprocurements required for manufacturing, production, operation (raw materials,components, spare parts, etc.)▪ 14% VAT is applied on exporting products from SCZONE to the local market

CORPORATETAX(INCENTIVESFOR 7 YEARS)▪ Discount on Corporate Tax (net profit) equivalent to 50% of project investment costs▪ Discount shall be attributed maximum to 80% from the paid-up capital

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INDIRECT INCENTIVESEXPORT & IMPORTREGULATION▪ Special rules governing the import and export from the SCZONE▪ Reducing cost & time of regulatory examination of shipments▪ Treating the end product of SCZONE industrial establishments as local products

NEW CUSTOMSGUIDE 2020

▪ Creating an integrated industrial community▪ Establishing a logistic platform to serving international trade and SCZONE▪ Reducing Time of Release of Shipments

EXPORT SUPPORTPROGRAM▪ Industrial manufacturers for export purposes at SCZONE will benefit from the program▪ Enhancing the competitiveness at foreign markets

DIGITALTRANSFORMATION▪ New website introducing e-services▪ Enhancing communication with investors through digital platforms

INCENTIVES TOLABOR-INTENSIVEPROJECTS USINGLOCAL COMPONENT▪ Reduced prices or facilitate the payment of the value of the energy▪ Full/Partial reimbursement of utilities cost done by investors on the project’s land▪ Partially/fully pay the insurance share of Egyptian employees & the employers for specified period

5-YEAR RESIDENCYPERMIT TO FOREIGNINVESTORS▪ Foreign investors have the right to obtain residency for a period of 5 continuous years, renewable forsimilar periods throughout the duration of the project

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UTILITIES & INFRASTRUCTUREPOWER

WATER

WATER TREATMENT

722

Power SubStations

Sea WaterDesalinationPlants

TreatmentPlants+Pipeline

1316

PowerDistributors

Water Lift Plant &Storage

COMMUNICATIONSewage TreatmentCompact Units

31CommunicationCentral + FiberOptics Cables

PressureReduction Unit +Pipeline Net

NATURAL GAS02SCZONE STRATEGIC PLAN (2015-2030)
The SCZONE was established in 2015 with a three-phases strategic plan till 2030

2015-2020

2020-2025

2025-2030

PrepareEnableLocalize

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SCZONE STRATEGY & OBJECTIVES (2020-2025)
Target investments and attractinternational shipping lines to theports

Create investment opportunitiesin industrial and maritime sectorsLocalize targeted industries tosubstitute imports

Adopt industrial clusters policy

Apply a world-class infrastructureCapitalize on SCZONE’s role as aglobal logistics hub amidinternational supply chains

Dynamically contributeto Egypt’s growth rate,while also fosterSCZONE’s position as aninternational Investmenthub and an exportplatform with adistinctive access toAfrica

Introduce an effective mechanismfor maritime services andbunkering facilitiesDevelop platforms for small andmedium enterprisesEstablish financial, commercialand services centersLaunch a new business identityand organizational reforms

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5 MAIN PILLARS FOR STRATEGY IMPLEMENTATIONFUTURE PLANS TO ATTRACT AND LOCALIZE THE TARGETED INDUSTRIESLong Term

Short Term
•Current02•Significant focus onfinancial incentives,specifically fortargeted sectorsAccelerateimplementation ofinitiatives tostrengthenregulatoryframework andservice levels•Focus on increasedecosystemreadiness•

Financial incentivesto be reduced after4 other dimensionsbecome strongenough to attracttenants on theirown

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TARGETED SECTORS/ INDUSTRIES

Bunkering

Logistics

Data Centers

Rolling Stocks

Automotive

Petrochemicals

Tires

Electric Batteries

Pharmaceuticals

Pharmaceuticals(Active Substance)

Solar Cells

CastingBuilding Materials

TextileAgribusiness

INDUSTRIAL CLUSTERS DISTRIBUTION

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