Combining industry, maritime transport and logistics, UAE and Egypt to develop East Port Said Industrial Zone

UAE-based port operator AD Ports Group and the General Authority for Suez Canal Economic Zone (SCZONE) have signed a 50-year renewable usufruct agreement to develop and operate a 20-square-kilometer industrial and logistics park near the Egyptian coastal city of Port Said on the Mediterranean Sea.

The East Port Said Industrial Zone is said to provide an opportunity to turn a ‘unique’ location on the Mediterranean Sea into a key hub for international trade and investments serving the East-West trade routes, right at the entrance of the Suez Canal.

Under the long-term agreement signed on May 4, 2025, AD Ports Group will develop, construct, finance, operate, and manage the industrial and logistics zone in phases, with a focus on phase 1 to start with, an area covering a total of 2.8 square kilometers.

An estimated total investment of $120 million will be allocated to market and technical studies as well as to phase 1 development over the next three years. Construction on the initial Phase 1 is expected to start by the end of this year.

“KEZAD East Port Said is a milestone that highlights the strong economic relations between the UAE and Egypt…This infrastructure investment will provide a long-term source of economic growth for Egypt, while enhancing the Suez Canal role in promoting and supporting the East-West trade corridor,” Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said.

“This project enhances SCZONE’s ongoing efforts to support global supply chains by providing a competitive and integrated investment environment, underpinned by advanced infrastructure, and a unique geographic location, connecting three continents via one of the world’s most vital maritime routes,” Waleid Gamal El Dien, Chairman of the Suez Canal Economic Zone, commented.

“Over the past few years, the SCZONE has become a cornerstone for the investment expansion plans of many … regional and international companies, thanks to its integrated model of combining industrial zones and affiliated seaports. Among these is the KEZAD East Port Said Industrial and Logistics Zone, which … connects with East Port Said Port, a key strategic location on the Mediterranean Sea. The port features deep berths for large vessels, efficient operations, and excellent connectivity to advanced road and transportation networks,” he added.

“We are working on developing an integrated model that combines industry, maritime transport, and logistics services within a flexible and investment-friendly regulatory environment. East Port Said Industrial Zone stands at the heart of this model due to its strategic location at the northern entrance of the Suez Canal and its direct connection to the modern East Port Said Port, a key hub in global trade,” Mohamed Ahmed Mahmoud, Vice Chairman of SCZONE for the Northern area, explained.

“Furthermore, the integration with West Port Said Port enhances its readiness to offer comprehensive and attractive logistical solutions for investors. Therefore, this project represents a qualitative leap in the development of the northern part of SCZONE, not only in terms of the scale of anticipated investments but also in the advanced industrial and logistical activities to be implemented.”

In addition, AD Ports Group and Hassan Allam Holding, which is one of the Group’s development partners in Egypt, signed a memorandum of understanding (MoU) to develop and invest in the industrial zone and explore other projects.

AD Ports Group in December 2024 appointed engineering and construction company Hassan Allam Construction to build AD Ports Group’s new multipurpose cargo terminal in Safaga, on Egypt’s Red Sea coast.

The group in 2023 obtained a concession from Egypt’s Red Sea Ports Authority (RSPA) to build and operate the $200 million Safaga multipurpose terminal project, which will be the first internationally operated multipurpose cargo terminal in Upper Egypt.

Since 2022, AD Ports Group has invested significantly in Egypt, acquiring Transmar, a regional shipping company, TCI, a port operator and stevedoring company, and in 2024, Safina, a provider of maritime agency and cargo services.

AD Ports Group has also secured long-term concessions to develop and operate three cruise terminals at the Red Sea ports of Safaga, Hurghada, and Sharm El Sheikh. In addition, AD Ports Group has initialled agreements for the right to develop and operate a cruise terminal and a RoRo terminal in Ain Sokhna.

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