Egypt’s Suez Canal Economic Zone Authority (SCZone) and Dubai-based ports operator DP World have formed a joint venture to develop a 95 square-kilometre industrial and residential zone in Egypt’s Sokhna city.

SCZone owns 51 per cent of the joint venture, with the rest owned by DP World, which will also manage the zone.

The zone is expected to start in the first quarter of 2018, a joint statement said. MEED understands this timeline likely refers to the start of the construction of the  project.

The development is in line with the Egyptian government’s plan to develop the Suez Canal corridor and the new administrative capital by attracting foreign direct investment.

It is expected to promote the development of “small and medium-sized enterprises (SMEs), create job opportunities and provide training for young Egyptians.”

The industrial zone will target medical, electronics and communications, construction materials, logistics, textiles, automotive parts, food processing, energy production components and petrochemicals, the statement said.

The residential zone will span 20 square kilometres and is envisaged to include coastal villas, residential units, shopping and administrative centres, entertainment facilities, mosques, schools, hospitals, clubs and green spaces. It is expected to host up to 500,000 residents upon completion.

The Dubai-based ports operator, which began operating the terminal at Sokhna Port in 2008, recently received bids for the contract to build a second basin at the port.

The project is part of the Sokhna Port’s long-term expansion plan, which involves the establishment of an integrated logistics area and a general cargo terminal.

MEED understands 14 global shipping lines including CGM-SMA, APL, Maersk and Cosco call at the port.