01 STRATEGIC FACTS

About SCZONE
SCZONE Facts

455 6 4 3
KM2

TOTAL AREA SEA MAIN INDUSTRIAL MAIN PORTS

PORTS ZONES OPERATORS

100K 14 90 270
DIRECT JOBS INDUSTRIAL PORTS OPERATIONAL
DEVELOPERS OPERATORS ESTABLISHMENT
Markets Accessibility
100%
CUSTOMS EXEMPTION
EFTA
With Free Trade
Agreements
EUTA

QIZ
AGADIR
100Mn
GAFTA CONSUMERS
Accessing a promising
domestic market in Egypt

MERCOSUR AFC]TA &

COMESA
2Bn
CONSUMERS ACCESSIBILITY
In the international market benefiting
from multiple free trade agreements
Strategic Location
A promising investment destination comprising 4
industrial zones & 6 sea ports, around the main global
maritime trade route (Suez Canal), passing through it:

12% 10% 20K

INTERNATIONAL SEABORNE SHIPS PER
TRADE TRADE YEAR

Industrial Zones. Ports

 PORTSAID
EAST
PORTSAID
PORTSAID TUNNELS

30JUNE AXIS AL ARISH ROAD

QANTARA
WEST QANTARA EAST ROAD

ISMAILIA TUNNELS

ISMAILIA EAST
ISMAILIA

CAIRO / ISMAILIA

PORTSAID / ISMAILIA Regional Context

SCZONE is well connected to the

CAIRO CAIRO / SUEZ SUEZ TUNNELS new modern roads network of
ADMIN CAPITAL
SUEZ
Egypt, and enjoys direct connection
to the new Suez Canal tunnels
CITIES
SUEZ / SOKHNA
HIGHWAYS

TUNNELS
SHARM ROAD facilitating transportation between
its two banks.
SOKHNA
02
Industrial Zones
SOKHNA Industrial Zone

One of the World’s largest industrial complexes

directly connected to Sokhna Port.

186km 2 13
Total Area Industrial Developer

+270 80km 2

Establishments Developers Area

East Portsaid Industrial Zone
North

A promising investment area at the northern entrance of

the Suez Canal comprising of logistics and industrial zones,
integrated with east port-said port.

el
n
Mediterranean Sea

Chan
roach
p
EP Ap
Logistical
East PortSaid Areas

64km 1
Port

SUEZ CANAL

L
CANA
SUEZ
Total Area Industrial Developer Fish Farms
Industrial Area

+10 16km 2
Port Said Tunnels

Establishments Developers Area

East Ismailia Qantara West
03
Ports
SOKHNA Port

Egypt’s main gateway on the Red Sea, at the southern entrance

to the Suez Canal, on the west coast of the Gulf of Suez.

25km 18km 18m 5.3km

2 2 10km to be connected
to (Sokhna/New
Alamain Electric
Train) under
Total Area New Quay Port Depth New Logistics Area Railways construction
ADABEYA Port

Located at the northern end of the Gulf of Suez, 17 km

away from Suez City

1.67km 2 1.4km
Total Area Quay Length

650m 9-14m
Turning Circle Port Depth
EAST PORTSAID Port

Located alongside the Suez Canal, with sheltered deep water

facilities capable of accommodating very large vessels

9.5km 5km 18m 27km

2 2

Total Area New Quay Port Depth Logistics Area

WEST PORTSAID Port

The Port is situated at the Northern entrance of the Suez Canal

at the crossroad of the main world sea trade route between the
East and West via the Suez Canal

1km 2 3.2km 670m 8-15m

Total Area Total Quay Length New Quay Length Port Depth
AL-ARISH Port

Considered the only port in North Sinai, suitable for

handling Dry bulk activities up to 6,000 tons.

1.55km 2 1.5km
Total Area Total Quay Length

915 m 7-15m
New Quay Length Port Depth
AL-TOR Port

Currently used as a small marine services berth to

serve the petroleum services activities for the Gulf of
Suez region.

0.5km 2 75m 5m
Total Area Quay Length Port Depth
04 WATER, POWER & ROADS

Utilities & Infrastructure

Utilities and Infrastructure

NATURAL GAS

1 PRESSURE REDUCTION UNIT

& PIPELINE NETWORK
COMMUNICATION

3 COMM. CENTRAL
& FIBER OPTICS CABLES
$2.8Bn
POWER SUPPLY SEWAGE TREATMENT WATER SUPPLY

7 POWER
SUB-STATION 2 TREATMENT PLANT
& PIPELINES 2 SEA WATER
DESALINATION PLANT

13 POWER
DISTRIBUTOR 6 SEWAGE TREAT.
COMPACT UNITS 3 WATER LIFT PLANT
& STORAGE
Utilities and Infrastructure
05 REGULATIONS

Incentives
 0% CUSTOM TAX
Incentives § 0% Customs on all project’s components imported from
abroad under the condition of exporting the final
products
§ In the case of exporting to the local market: custom
tax will be applied on the imported components only

0% VALUE ADD TAX

§ 0% VAT applied whether importing from local or foreign
markets to SCZONE, on all procurements required for
manufacturing, production, operation (raw materials,
components, spare parts, etc.)
§ 14% VAT is applied on exporting products from SCZONE
to the local market

50% CORPORATE TAX REFUND (Valid for 7 Years)

§ Discount on Corporate Tax (net profit) equivalent

to 50% of project investment costs
§ Discount shall be attributed maximum to 80% from
the paid-up capital
Incentives

5-YEAR RESIDENCY PERMIT TO FOREIGN INVESTORS

§ Foreign investors have the right to obtain residency for a
period of 5 continuous years, renewable for similar periods
throughout the duration of the project

LABOR-INTENSIVE PROJECTS USING LOCAL COMPONENT

§ Reduced prices or facilitate the payment of the value of the energy
§ Full/Partial reimbursement of utilities cost done by investors on the
project’s land
§ Partially/fully pay the insurance share of Egyptian employees & the
employers for specified period
 EXPORT & IMPORT REGULATION
Incentives § Special rules governing the import and export from the
SCZONE
§ Reducing cost & time of regulatory examination of shipments
§ Treating the end product of SCZONE industrial establishments
as local products

NEW CUSTOMS GUIDE & DIGITAL TRANSFORMATION

§ Creating an integrated industrial community
§ Establishing a logistic platform to serving international trade
and SCZONE
§ Reducing time of release of shipments
§ Introducing e-services and digital platforms

EXPORT SUPPORT PROGRAM

§ Industrial manufacturers for export purposes at SCZONE
will benefit from the program
§ Enhancing the competitiveness at foreign markets
 06 2020 - 2025

SCZONE Strategy SCZONE Strategy

Strategic Plan

SCZONE was established in 2015

with a three-phases Strategic Plan

2015 2020 2025

P R E PA R E ENABLE LOCALIZE

2020 2025 2030

Strategic Pillars

Labor Foreign ownership

Access to social services Land ownership
Developing main infrastructure Labor Flexibility
Access to local & international markets Set-up & Conflict resolution
Regulatory
Establishing industrial network Ecosystem Framework Capital reimbursement
Readiness

Labor cost Income tax

Shipping cost Corporate tax
Cost Financial
Utilities cost Positioning Incentives Financial support
Construction cost Company loan rate
Land lease rate Customs regime
Service Level
Provided
Investors Services One-stop-shop
 Dynamically contribute to Egypt’s growth rate, while fostering
Strategy & SCZONE’s position as an international Investment hub and an
export platform with a distinctive access to Africa.
Objectives
Capitalize on SCZONE’s Introduce an effective
role as a global logistics mechanism for maritime
2020 hub a mid international services and bunkering
supply chains facilities
ENABLE

2025 Localize targeted Target investments and

industries to substitute attract international
imports shipping lines to the ports

Adopt industrial clusters Develop platforms for

policy for Ports and small and medium
Industrial Zones enterprises

Apply a world-class Establish financial, commercial

infrastructure and services centers
 07
SCZONE Strategy Targeted Sectors &
Industrial Clusters
Targeted Sectors & Industries

Data Vocational & Bunkering

Logistics Centers Maintenance Conventional
Centers /Green

Water
Green
Solar PV Wind Turbines Desalination Petrochemicals
Fuel
Membranes

Electric Casting &

Automotive Tires Rolling Stock
Batteries Foundry

Pharma Medical Building

(Active Pharmaceutical Agribusiness Textile
Equipment Materials
Substance)
 15M 85Bn
Green Fuel Industrial
Cluster at SCZONE 9 TONS/YEAR
Estimated
Production
USD
Estimated
Investment
In response to the rising global FRAMEWORK
demand, and capitalizing on
SCZONE’s strategic location, we
AGREEMENTS
(SIGNED)
17M SQM
700K SQM
work on localizing the GREEN FUEL
INDUSTRY at our Industrial Areas & Industrial Land Port Land
Ports.

Hence, the SCZONE signed:

21 MOUs Seven
Framework
10M 50Bn 10M 500K
TONS/YEAR USD SQM SQM
Agreements Estimated Estimated Industrial Port
(PIPELINE) Production Investment Land Land
Green Fuel Cluster at Sokhna

DESAL.
WATER
PLANT

LIQUID
BULK
TERMINAL

TANK
FARMS
Operational Model of Green
Fuel Projects at SCZONE
Investment opportunities in
green fuel projects at SCZONE

• Green Hydrogen
Production
Main Stream
• E-Methanol Production
• Green Ammonia
• Power Sub-stations
Production
• Utility Corridor
Infrastructure • Water Desalination Plant
• Liquid Bulk Terminal
• Electrolyzers Operation
• Solar PV
• Wind Turbines
Feeding Industries
• Water Desalination
Membranes
• Maintenance & Vocational • Sokhna Port
Green Bunkering • East PortSaid Port
Training Centers
Rolling Stock Industrial Cluster
In partnership with the Sovereign Fund of Egypt and a
number of private sector companies, the SCZONE
established the National Egyptian Railways Industries
Company (NERIC) at East Port-Said Industrial Area for
the production of electric rolling stock

2.8Bn 300K
EGP SQM
Investments Industrial Area

Production Capacities (Phase 1)

125 Unit/Year
150Unit/Year
150Unit/Year
Maintenance Subway Units Electric Train
Factory Factory Units Factory
Automotive Industrial Cluster Stamping Shop

Capitalizing on the successful model of the rolling

stock cluster, the SCZONE plans to allocate 1.2 million
m2 at East Port-Said Industrial Area for the
automotive industry, for the production of 75,000
cars/year (phase 1) with a shared operational model
Plastic Parts
for the Stamping Shop, the Plastic Parts Paint Shop
Paint Shop
and the Paint Shop

FACTORY (4)

FACTORY (3)

FACTORY (2)

FACTORY (1)
The industrial cluster is expected to attract the
feeding industries, and should serve the local and Paint Shop
regional markets leveraging on the presence of a
RoRo terminal at East Port-Said Port