https://arab.news/vxtcw
RIYADH: Egypt’s Suez Canal Economic Zone secured 144 projects worth $3.2 billion between July 2023 and April 2024, down from $4.9 billion recorded during July 2022 to May 2023.
This comes amidst ongoing attacks in the Red Sea since October, leading to significant global economic disruption, particularly affecting container shipping traffic and global trade.
This is evident in a 50 percent drop in Suez Canal trade in the first two months of 2024 compared to the previous year, and a 32 percent decrease in trade through the Panama Canal, as reported by the International Monetary Fund in a March blog post.
In a statement issued by the Egyptian Cabinet, Walid Gamal El-Din, chairman of the General Authority for the Suez Canal Economic Zone, revealed that out of the 144 projects in its industrial zones and ports, 67 have obtained final approvals, while 77 have received initial approvals.
He added that more than 25,000 direct and indirect job opportunities will be created upon the completion and operation of these projects.
This reflects the authority’s ongoing efforts and activities despite the negative impact of regional developments on port revenues.
It also aligns with the entity’s mission to attract businesses from around the region by offering easy access to local markets and talent.
Furthermore, the chairman disclosed that the implementation rates of investment projects within the industrial zones reached 77 percent, while those in ports reached 71 percent.
Regarding Chinese investments in the special economic zone TEDA, El-Din explained that there are 42 existing projects, with an additional 12 projects under construction awaiting operating licenses. Additionally, 40 projects are currently in the process of completing procedures to obtain building licenses.
On green hydrogen projects, the chairman highlighted that between January and April, 12 framework agreements and six memorandums of understanding were signed, with an additional MoU set to be signed soon.
Furthermore, El-Din provided insights into the development work progress in the authority’s ports, noting a 94 percent implementation rate in Ain Sokhna Port, 86 percent in East Port Said Port, and 93.8 percent in West Port Said Port.
Additionally, he mentioned a 73.7 percent implementation rate in Al-Arish Port and 75 percent in the West Qantara West zone.
Moreover, the chairman reviewed the ship bunkering operations and marine services at the authority’s ports. He noted that the body implemented the first ship bunkering operation with green fuel in East Port Said Port in August 2023.
He also highlighted that the development work of the East Ismaili Zone has reached 100 percent implementation of some works.
About 15 percent of world shipping traffic transits via the Suez Canal, the shortest shipping route between Europe and Asia. The Suez Canal is also an important source of foreign currency for Egypt.