AD Ports Group – the UAE’s flagship ports operator – and Egypt’s General Authority for Suez Canal Economic Zone (SCZONE) have launched an ambitious joint project to develop the KEZAD East Port Said Industrial and Logistics Zone.
In early May 2025, both parties signed a 50-year renewable usufruct agreement to design, build, and operate a new 20-square-kilometer industrial hub just outside Port Said on Egypt’s Mediterranean coast.
This strategic venture leverages Egypt’s prime geography at the Suez Canal’s northern gateway. By placing manufacturing and logistics facilities at this “unique” location, the project is positioned to serve booming East–West trade routes linking Europe, Asia, and Africa.
The KEZAD East Port Said Zone will be developed in phases. In the first phase, AD Ports Group will prepare a 2.8 km² site, funding about $120 million in market studies and early works over three years.
Construction on Phase 1 is slated to begin by the end of the year. Under the agreement, AD Ports will not only finance and build the infrastructure, but also manage and operate the industrial park long-term.
This phased approach ensures careful planning and attracts anchor investors before scaling up. “KEZAD East Port Said is a milestone that highlights the strong economic relations between the UAE and Egypt,” said AD Ports’ CEO Mohamed Juma Al Shamisi, noting the project will provide a “long-term source of economic growth for Egypt” while boosting the Suez Canal’s role in global trade.
A major aspect of the plan is collaboration with local developers. The first phase is anchored by partnerships with regional industry leaders. In particular, Hassan Allam Holding – a top construction and development group in Egypt – will play a key role.
AD Ports Group and Hassan Allam have signed a memorandum of understanding to co-invest in the new industrial zone. Earlier in 2024, AD Ports had already tapped Hassan Allam’s construction arm to build its new multipurpose cargo terminal at Safaga on the Red Sea.
This ongoing collaboration ensures that the East Port Said project benefits from local expertise in large-scale construction and infrastructure.
Strategic Location and Connectivity
East Port Said’s location is the heart of this project’s strategic value. The site sits directly on the Mediterranean Sea at the northern mouth of the Suez Canal – one of the world’s busiest shipping lanes.
This prime position allows the zone to function as a global trade hub, connecting Europe with the Middle East, South Asia, and Africa via one location. SCZONE officials emphasize that the project will enhance the zone’s integrated model of industry plus port.
The new KEZAD zone will link with East Port Said Port, featuring deep berths and efficient operations. According to SCZONE Chairman Waleid Gamal El-Dien, this “unique geographic location” will connect three continents via a vital maritime route.
In practical terms, manufacturers in the zone can ship products directly to international markets without transiting another port, and raw materials from multiple continents can meet here. This connectivity is ideal for near-shore manufacturing, global distribution centers, and shortening supply chains.
As the SCZONE leadership notes, the project aligns with the trend of creating regional manufacturing clusters to “shorten and sustain global supply chains”.
Economic Impact and Benefits
For Egypt, the KEZAD East Port Said development promises substantial economic benefits. The project is expected to attract foreign and domestic investment into the industrial sector, create tens of thousands of new jobs, and spur growth in logistics, manufacturing, and services.
By facilitating advanced industries in Egypt’s northern corridor, it can diversify the economy beyond traditional sectors. UAE and Egyptian leaders have made the initiative a priority as part of their long-standing partnership to boost trade.
The joint venture sends a strong signal to international investors that Egypt’s infrastructure is expanding with world-class partners. AD Ports’ investment in local companies – such as acquiring Transmar, TCI, and Safina, and winning concessions for Red Sea ports – shows their confidence in Egypt’s potential.
Moreover, the project highlights Egypt’s geo-economic significance. Sitting on the Suez, Egypt controls access between the Mediterranean and the Red Sea; this development enhances that advantage.
It turns East Port Said into a complementary node alongside the southern Suez hub at Ain Sokhna. Analysts suggest that having industrial zones at both ends of the canal creates a ‘gateway’ for global commerce through Egypt.
As Al Shamisi explained, such infrastructure investment not only benefits Egypt but also underpins global trade networks. By integrating world-class facilities and partners, the project may help lower transport times and costs for global supply chains – a goal many companies are seeking after recent disruptions.
For businesses and investors, the unfolding opportunity is clear. Companies aiming to expand in the Middle East and North Africa can find incentives and efficient infrastructure in KEZAD East Port Said.
To navigate the local market and legal requirements, firms often turn to experienced consultants. In this context, Corporate Business Services, a top business setup consultant in Dubai and the UAE, can assist foreign companies with company formation, licensing, and compliance in the region.
(For example, a manufacturer in Europe looking to join this new industrial zone could enlist Corporate Business Services to establish a UAE entity and handle UAE–Egypt trade logistics.)
