Abu Dhabi’s trade, transport and logistics solutions expert AD Ports Group has signed a 50-year renewable usufruct agreement with Egypt’s Suez Canal Economic Zone to develop and operate a 20 km2 industrial and logistics park near the Egyptian coastal city of Port Said on the Mediterranean Sea.
AD Ports Group will develop, construct, finance, operate, and manage the industrial and logistics zone in phases, with a focus on phase 1 to start with, an area covering a total of 2.8 km2.
An estimated total investment of $120 million will be allocated to market and technical studies as well as to phase 1 development over the next three years.
The construction on the initial 2.8 km2 phase 1 is expected to start by the end of this year.
The development of phase 1 will be anchored by key potential clients and partners, including one of the region’s foremost construction and development groups, Hassan Allam Holding, AD Ports said.
According to the company, the East Port Said Industrial Zone provides an opportunity to turn a unique location on the Mediterranean Sea into a key hub for international trade and investments serving the East-West trade routes, right at the entrance of the Suez Canal.
In addition, AD Ports Group and Hassan Allam Holding, which is one of the Group’s development partners in Egypt, signed a memorandum of understanding to develop and invest in the industrial zone and explore other projects.
Hassan Allam Construction, the construction arm of Hassan Allam Holding, has been appointed in December by AD Ports Group to build AD Ports Group’s new multipurpose cargo terminal in Safaga, on Egypt’s Red Sea coast.
AD Ports Group has invested heavily in Egypt since 2022, acquiring Transmar, a regional shipping company, TCI, a port operator and stevedoring company, and in 2024, Safina B.V., a provider of maritime agency and cargo services.
The Group has a maritime fleet of 247 vessels, 34 terminals, in addition to an economic and industrial land bank of over 550 km2.
“KEZAD East Port Said is a milestone that highlights the strong economic relations between the UAE and Egypt,” said managing director and Group CEO of AD Ports Group, Captain Mohamed Juma Al Shamisi, adding: “This infrastructure investment will provide a long-term source of economic growth for Egypt, while enhancing the Suez Canal role in promoting and supporting the East-West trade corridor.”
