AD Ports Regional CEO Ahmed Al Mutawa (center left) and SCZONE's Adm. Mohamed Ahmed Mahmoud (center right) sign a new lease for East Port Said (AD Ports)
Under a recent 50-year agreement, AD Ports will develop and operate a new shipping and cruise terminal in the East Port Said industrial and logistics zone, located at the northern entrance of the Suez Canal. Additionally, AD Ports has a 30-year contract for a multi-purpose port in Safaga on the Red Sea coast and a 15-year deal for cement terminals in West Port Said and El Arish. Plans are also underway for cruise terminals in Hurghada and Sharm El Sheikh, alongside an integrated logistics park at the Port of Alexandria. These projects aim to modernize Egypt’s maritime infrastructure and boost trade efficiency.
In 2022, DP World signed an agreement to develop the port of Sokhna, situated 25 miles southwest of the Suez Canal’s Port Suez entrance. With an initial $80 million investment, DP World is constructing a logistics park and plans to add a second basin, jetty, liquid bulk facilities, specialized warehousing, a sugar refinery, and a livestock handling facility, all connected to a nearby industrial zone. The first phase is operational, and in late 2024, DP World agreed to explore a free trade zone in Egypt’s New Administrative Capital. These efforts strengthen Egypt’s position as a regional trade hub.
AD Ports, owned by Abu Dhabi, and DP World, owned by Dubai, reflect the UAE’s focus on expanding its influence in global trade routes, particularly from the Gulf to the Mediterranean. DP World currently manages around 10% of global container capacity, with operations in 34 countries. For Egypt, these partnerships provide immediate capital without increasing formal external debt, with the promise of regaining control of upgraded infrastructure in the future.
Egypt’s economy faces challenges, including a decline in Suez Canal revenues due to regional shipping disruptions. Canal earnings dropped from $9.4 billion in 2022-23 to $7.2 billion in 2023-24, with an estimated $1.8 billion for 2024-25. Despite this, Egypt’s debt-to-GDP ratio improved from 96% in 2023 to 91% in 2024, outperforming some developed nations like the US (98%) and UK (98%). Egypt owes $11 billion to the International Monetary Fund but continues to prioritize infrastructure investments, such as the $8 billion Suez Canal upgrades since 2014, to drive long-term economic stability.
