Consultations Underway to Establish the Project under the Private Free Zones System to Boost Exports
- Dr. Mohamed Farid:
- The Ministry’s strategy aims to attract investments that add value to the Egyptian economy
- Egypt possesses investment frameworks capable of providing a conducive environment to transform the country into a regional investment and trade hub
- The project aims to export approximately 90% of its production to international markets
- A comprehensive media campaign has been launched across visual media and social media platforms to promote Egypt’s investment frameworks
- Sophie Li:
- The Egyptian market has strong fundamentals that position it as a suitable regional hub for manufacturing and export
- The company seeks to transfer technology to the Egyptian market to enhance industrial capabilities
- The company estimates project investments at approximately USD 2 billion, subject to obtaining the necessary licenses and approvals
- Osama El-Naggar:
- The project will support supply chains and create direct and indirect employment opportunities
In a new step reflecting the state’s accelerated efforts to attract high value-added foreign investments and enhance productive and export capacities, Dr. Mohamed Farid, Minister of Investment and Foreign Trade, held discussions with officials from China’s Shandong Linglong on the establishment of a tire manufacturing project under the Private Free Zones system.
It is worth noting that Egypt offers four main investment frameworks that provide diverse opportunities and incentives for investors: the internal investment framework, free zones (both public and private), investment zones and technological zones, in addition to Special Investment Zones (SIZ), which are investment areas that include a customs zone to facilitate export and import procedures.
The meeting was attended by Ms. Sophie Li, General Manager of Projects and Investments at Shandong Linglong; Mr. Osama El-Naggar, Chairman of Nile Projects and Trading Company, along with their accompanying delegation; Eng. Mohamed El-Gousaky, CEO of the General Authority for Investment and Free Zones (GAFI); and Mr. Mohamed Ayad, Advisor to the Minister of Investment.
The two sides discussed opportunities to implement a project to establish an integrated industrial complex for the production of passenger and heavy vehicle tires, in cooperation with Nile Trading and Supplies Company (Fit & Fix), under a private free zone framework. The project will also include feeder industries such as rubber and carbon black, and will be established on an area of up to 3 million square meters in Borg El Arab. Approximately 90% of production will be directed for export to international markets, particularly the United States and Gulf countries.
The Minister affirmed that the Egyptian government prioritizes attracting investments that contribute to technology localization to enhance production and industrial capabilities, as well as increase the value of Egyptian exports. This includes the automotive sector and its supporting industries, particularly tire manufacturing, which the Ministry seeks to advance in coordination with relevant ministries and entities.
According to the company’s presentation, total project investments are estimated at approximately USD 2 billion over the project development period, following the completion of all required licenses and approvals.
Dr. Farid added that Egypt’s investment frameworks, including the Free Zones framework, serve as an effective mechanism for simplifying procedures and attracting foreign direct investment, thereby strengthening Egypt’s position as a destination for high value-added investments.
He further explained that the Private Free Zones framework offers a range of incentives and facilitation measures that support companies in accessing global markets, noting that the project aligns with the state’s direction to increase non-oil exports.
For her part, Ms. Sophie Li, General Manager of Projects and Investments at Shandong Linglong, affirmed that the Egyptian market enjoys strong fundamentals that make it an appropriate regional hub for manufacturing and export, given its strategic geographic location and extensive trade agreements.
She noted that the company aims to establish an integrated industrial complex using the latest technological systems in partnership with Nile Projects and Trade Company, under the Private Free Zones framework, highlighting the company’s intention to transfer technology and enhance local industrial capabilities.
She added that the company plans to continue its engagements with relevant authorities to obtain the necessary approvals to commence project implementation.
Mr. Osama El-Naggar, Chairman of Nile Projects and Trading Company, stated that cooperation with the Chinese company on this major project will support the national economy by reducing imports, achieving industrial integration, creating job opportunities, and enhancing Egypt’s export capacity.
Private Free Zones represent a specialized investment framework that grants large-scale industrial projects customs and tax incentives on production inputs, while providing exceptional procedural facilitation to enable direct export from factories to global markets.
As part of efforts to promote Egypt’s investment frameworks, the Ministry of Investment and Foreign Trade has launched a comprehensive media campaign across visual media and social media platforms. The campaign highlights investment zones as integrated models that support companies in incorporation, operation, and business development, while showcasing the success stories of hundreds of companies operating within these zones and how they have benefited from them in achieving their operational and financial objectives.
