General Mohamed Refaat, acting head of the General Authority for the Northwest Suez Gulf Economic Zone signed a contract with the Chinese developer TEDA to develop 6 square kilometers in Ain Sokhna.
The project is the first phase in a larger development deal between Egypt and China, with the Chinese government having presented a grant to establish a 20,000 metre complex, Refaat said, in a meeting with 30 Chinese representatives during their visit to northeast Suez.
The developers plan to build $800m in infrastructure, which will include 500 factories, he said. The $8.6bn investment will directly and indirectly create 120,000 jobs in Mediterranean and the Red Sea , Southeast Asia and the Gulf Arab states.
The planned scheme also includes establishing an airport in Ain Sokhna.
Dawod Hans, TEDA’s representative, said the economic climate in Ain Sokhna makes it a unique area to establish international projects because it borders the Suez Canal. The Chinese have already set up several factories in Suez in petrochemicals, automobile assembly and clothing.
During the meeting, Chinese investors asked for clarification about the financial and managerial structure of the project. Egyptian officials said any product manufactured in Sokhna would be issued a globally recognised certificate of origin, unlike products manufactured in the free zone, an area where the Egyptian government has agreed to provide exemptions and reductions for custom taxes and duties.
