Interest in the Suez Canal expansion project is rising, following the presentation of the project masterplan at the Egypt Economic Development Conference (EEDC) in Sharm el-Sheikh.

The new Suez Canal Zone (SCZone) project covers 500 square kilometres of industrial facilities and six ports along the canal, and was presented to potential investors during the economic summit held between 13-15 March.

It will be a home for companies involved in shipping, logistics, information and communications technology (ICT) and energy services.

The authority aims to have 9 per cent of global seaborne trade going through the canal by 2030. It is expected the development will create 1 million jobs over the next 15 years.

“People are much more interested in the project now they have seen the work that has been done and after they have seen the investment incentives and the creation of an entity that will take care of the development,” says Yehia Zaki, director of operations for Egypt at Lebanon’s Dar al-Handasah, the company that worked on the project’s masterplan.

“I think people are now more optimistic and things will move much quicker,” he said, speaking to MEED on the sidelines of the EEDC on 15 March.

He expects construction to begin within a few months, with the greatest progress likely to be made on the zone surrounding East Port Said.

The investment incentives are related to amendments to an existing law covering special economic zones that was first past in 2002. The changes are designed make the zone more attractive for investors and companies.

The amendments were approved by Egypt’s cabinet in the days running up to the EEDC and are now awaiting ratification.

The amendment will change the area into an economic authority, allowing the SCZone to act as a single window able to deal with investors directly, without having to redirect them to other government bodies. It aims to reduce the level of bureaucracy often associated with trying to do business in Egypt.

During the EEDC, the Investment Ministry and the Suez Canal Authority also signed a memorandum of understanding (MoU) to help boost investment in the new zone. The ministry will provide consultancy services to the authority.

See profile of the New Suez Canal