Abu Dhabi Ports Group to develop major industrial zone in Egypt in $120M deal

Abu Dhabi Ports Group has signed a landmark agreement with Egypt’s General Authority for the Suez Canal Economic Zone to develop and operate a 20-square-kilometer industrial and logistics hub near Port Said. The concession spans 50 years, with the possibility of renewal.

According to a statement from the Egyptian government, the KEZAD East Port Said project will see Abu Dhabi Ports invest $120 million in market and technical studies for the zone’s development.

The group, backed by Abu Dhabi’s sovereign wealth fund ADQ, is deepening its strategic footprint in Egypt. Earlier this year, ADQ announced a $35 billion investment in Ras El Hekma on Egypt’s North Coast, the largest foreign direct investment in the country’s history.

This new deal builds on Abu Dhabi Ports' growing presence in Egypt. In the past year, the company signed three 10-year concession agreements for cruise terminals in Safaga, Hurghada, and Sharm El Sheikh. In 2023, it committed $200 million to construct and operate Egypt’s first international multipurpose terminal in Safaga, targeting the underserved Upper Egypt market.

The group also reported a 416% year-on-year surge in net profit in Q4 2023, reaching AED 383 million, fueled by two major acquisitions and opportunities arising from the Red Sea shipping crisis.

Under the new agreement, Abu Dhabi Ports will finance, develop, build, manage, and operate the East Port Said zone in phases. The first phase will cover 2.8 square kilometers and will be delivered over three years. Construction is expected to begin by late 2024, including the development of a 1.5-kilometer quay, with plans for a future multipurpose cargo terminal.

In parallel, Abu Dhabi Ports has signed a memorandum of understanding with Hassan Allam Holding to explore further cooperation on ports, industrial zones, and logistics services in East Port Said and across Egypt. The group had previously commissioned Hassan Allam Construction to develop infrastructure for the Safaga terminal last December.

Located at the entrance of the Suez Canal and overlooking the Mediterranean, East Port Said is positioned as a strategic trade and investment gateway, and a cornerstone of Egypt’s industrial ambitions.