Teda, the world's largest industrial zone developer, will develop, manage and market the 5 square-kilometre zone near Suez, in a joint venture with local companies Siac Industrial Construction & Engineering Company and El-Sewedy. It is one of 15 new industrial zones being planned by Cairo (MEED 12:10:07).
'This new zone will serve as a hub in the region for Chinese manufacturers looking to move closer to markets throughout the Middle East and Africa,' says Industry Minister Rachid Mohamed Rachid.
Known as the Chinese-Egyptian Zone for Economic Co-operation and Trade, the scheme will be developed in two phases. A 1-square-kilometre area will be developed in an initial three-year construction phase and is expected to attract $250 million in investment. In the second phase a further 4 square kilometres will be added over the next 10 years.
The zone is targeted at companies involved in textiles and garments, oil and gas pipes, cars and automotive components and electronic equipment. Infrastructure investment will total $100 million.
A further 10 agreements for industrial zones in the country will be signed by early 2008.
The agreement was signed during a four-day visit to Cairo by Chinese Deputy Commerce Minister Liao Xiaoqi. Rachid and Xiaoqi also agreed to co-operate on establishing Egypt's first international conference and exhibition centre outside Cairo. Feasibility studies will be carried out with Chinese funding.