Chinese takeover Egypt… The Suez Canal turns into a Chinese Center
The Suez Canal Economic Zone is witnessing a clear transformation into one of the most important Chinese investment bases in the Middle East and Africa, after it became a preferred destination for Chinese investors and companies wishing to establish industrial and logistics projects aimed at exporting to global markets.
In recent years, the flow of Chinese capital into the region has accelerated, with 125 new export-oriented projects established, making Chinese companies the second largest nationalities investing in the region after Egyptians, officials said.
According to data from the General Investment Authority, total Chinese investments in Egypt during the first 11 months of this year increased by $2.7 billion to reach $5.7 billion, compared to about $3 billion previously.
According to Walid Gamal Elddin, head of the Suez Canal Economic Zone, said that over the past three and a half years, the authority has been able to attract investments of up to $11.6 billion, almost half of which are Chinese investments, reflecting the growing confidence of Chinese companies in the Egyptian investment environment.
He explained that cooperation with the Chinese “TEDA” zone within the economic zone has resulted in the implementation of more than 200 industrial, service and logistical projects with a total investment exceeding $3 billion.
The volume of Chinese investments in the West Qantara Industrial Zone has also reached more than $700 million.
During the current year, the Egyptian authority signed a large number of contracts with Chinese companies, most notably the contract of “Cylon” worth $1 billion to establish a factory for car tires, in addition to the project of CJN to establish a phosphate fertilizer factory in the “Sokhna 360” area, which is being developed by El Sewedy Industrial Development Company, with similar investments amounting to $1 billion.
The Suez Canal Economic Zone enjoys various incentives including ease of procedures, customs and tax exemptions, in addition to its strategic location that connects three continents, making it a direct access to markets that include billions of consumers around the world.
China’s appetite to invest in the region has also increased following escalating trade tensions between Beijing and Washington and tariffs imposed by the United States on many imports.
Egyptian Minister of Investment and Foreign Trade Hassan al Khatib said that the government is intensifying its efforts to attract more Chinese investments, especially in the industrial and technological sectors, stressing that the next phase will witness the expansion of co-production to enhance added value and increase Egyptian exports to international markets.
He added in statements to China’s Xinhua news agency that China is a strategic partner of Egypt, and that the number of Chinese companies operating in the country is steadily increasing.
According to data from the General Investment Authority, there are more than 2,800 Chinese companies in Egypt that invest more than $8 billion in multiple sectors, including mega projects such as the Central Business District in the New Administrative Capital, factories in the automotive industry, and others.
