Dubai’s DP World signs deal to develop first phase of Suez zone

Dubai ports operator DP World has signed an agreement with Egypt’s Suez Canal Authority and Economic Zone to develop the first phase of an integrated industrial and residential area.

The opening phase spans 30 square kilometres with later phases intended to expand the zone to 70 square kilometres, increase the capacity of Sokhna port and link it to the zone

Last year, DP World formed a joint venture with Suez Canal Economic Zone for the project. The Dubai company owns 49 per cent and will manage the zone under the deal.

Read: Dubai’s DP World, Egypt’s Suez Canal Authority to develop economic zone

Both sides aim to sign deals with companies that want to establish a presence in the zone.

The industrial component will target light and medium-sized industries, logistics, and service utilities with a focus on medical, electronics and communications, construction materials, logistics, textiles, automotive parts, food processing, energy production components and petrochemicals.

The residential area will span 20 square kilometres and include coastal villas, residential units, shopping and administrative centres, entertainment facilities, mosques, schools, hospitals, clubs and green spaces with a total capacity of 500,000 people.

“In Dubai and at DP World, we have seen first-hand the power of trade infrastructure like free zones and seamless logistics corridors to drive economic growth – today, our flagship Jebel Ali Port and Free Zone together contribute to over 20 per cent of Dubai GDP,” said DP World chairman and CEO Sultan Bin Sulayem.

“We hope to see Sokhna’s new industrial zone drive the same if not greater growth for Egypt. Our focus on long term sustainable change will also ensure that this growth is beneficial for generations to come.”

Work is scheduled to start in the first quarter.