Chinese Firms to Inject $2.4bn into Egyptian Investments
Jiangsu Provincial Port Group Co., Ltd. and Shanghai Huanshi Logistics Co., Ltd. to invest in a logistics and commercial zone as well as a container terminal at Ain Sokhna Port.
Chinese companies are poised to invest approximately $2.4 billion in Egypt, primarily focused on the development of a significant logistics and commercial zone alongside a container terminal at Ain Sokhna Port.
The logistics and commercial zone, backed by an estimated $2 billion, will encompass an extensive area of 3 million sq.
meters, comparable to the scale of China’s Yiwu city.
Additionally, the container terminal at Ain Sokhna Port is set to be developed with a preliminary investment of $400 million, boasting a designed capacity for handling 2 million containers.
These projects are to be undertaken by Jiangsu Provincial Port Group Co., Ltd. and Shanghai Huanshi Logistics Co., Ltd., as per an announcement made by the Egyptian Cabinet Presidency’s Facebook account.
This surge in Chinese investments aligns with broader economic activities within the Suez Canal Economic Zone (SCZONE), which, since December, has seen plans to host three new industrial projects totaling $1.15 billion in combined investment.
The total investments in this zone have now reached $5.1 billion by the first half of the 2025/26 fiscal year, highlighting its emerging role as a pivotal regional industrial and logistics hub.
According to the statement released, the Egyptian government remains committed to fortifying its economic cooperation with China across various sectors, considering China as a strategic partner.
Walid Gamal El-Din, chairman of the General Authority for SCZONE, emphasized that Chinese companies are among the most prominent investors within the SCZONE and assured support for additional investments in this zone.
The meeting also reviewed several new projects aimed at implementation by Chinese companies across Egyptian markets, particularly within the SCZONE, New Administrative Capital, and various industrial zones.
One such project includes the establishment of a 100,000 sq.
meter industrial zone by the Chinese Hurricane Group, which will encompass production lines for chemical products, fast-moving consumer goods, household appliances, as well as regional storage centers and smart logistics systems.
This development is expected to form an integrated supply chain network serving Egyptian, African, Middle Eastern, and European markets.
Approximately 70 percent of the production output is slated for export purposes, with the remaining 30 percent catering to the local market.
The meeting also explored the possibility of setting up a customs warehouse for re-exporting used machinery to African markets.
Chinese representatives expressed interest in strengthening cooperation between the Chinese Chamber of Commerce and the Egyptian government to attract further investments into Egypt’s market, aligning with government-identified sectors.
It has been noted that over 160 Chinese companies are currently operating across various sectors in Egypt and have signalled intentions to expand their investments within the country.
These developments underscore China's broader Belt and Road Initiative, wherein state-linked firms aim to anchor Chinese industry within countries pivotal for global trade operations.
The logistics and commercial zone, backed by an estimated $2 billion, will encompass an extensive area of 3 million sq.
meters, comparable to the scale of China’s Yiwu city.
Additionally, the container terminal at Ain Sokhna Port is set to be developed with a preliminary investment of $400 million, boasting a designed capacity for handling 2 million containers.
These projects are to be undertaken by Jiangsu Provincial Port Group Co., Ltd. and Shanghai Huanshi Logistics Co., Ltd., as per an announcement made by the Egyptian Cabinet Presidency’s Facebook account.
This surge in Chinese investments aligns with broader economic activities within the Suez Canal Economic Zone (SCZONE), which, since December, has seen plans to host three new industrial projects totaling $1.15 billion in combined investment.
The total investments in this zone have now reached $5.1 billion by the first half of the 2025/26 fiscal year, highlighting its emerging role as a pivotal regional industrial and logistics hub.
According to the statement released, the Egyptian government remains committed to fortifying its economic cooperation with China across various sectors, considering China as a strategic partner.
Walid Gamal El-Din, chairman of the General Authority for SCZONE, emphasized that Chinese companies are among the most prominent investors within the SCZONE and assured support for additional investments in this zone.
The meeting also reviewed several new projects aimed at implementation by Chinese companies across Egyptian markets, particularly within the SCZONE, New Administrative Capital, and various industrial zones.
One such project includes the establishment of a 100,000 sq.
meter industrial zone by the Chinese Hurricane Group, which will encompass production lines for chemical products, fast-moving consumer goods, household appliances, as well as regional storage centers and smart logistics systems.
This development is expected to form an integrated supply chain network serving Egyptian, African, Middle Eastern, and European markets.
Approximately 70 percent of the production output is slated for export purposes, with the remaining 30 percent catering to the local market.
The meeting also explored the possibility of setting up a customs warehouse for re-exporting used machinery to African markets.
Chinese representatives expressed interest in strengthening cooperation between the Chinese Chamber of Commerce and the Egyptian government to attract further investments into Egypt’s market, aligning with government-identified sectors.
It has been noted that over 160 Chinese companies are currently operating across various sectors in Egypt and have signalled intentions to expand their investments within the country.
These developments underscore China's broader Belt and Road Initiative, wherein state-linked firms aim to anchor Chinese industry within countries pivotal for global trade operations.
