Egypt: SCZone revenues soar to $170mln in FY 2023/24

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The Suez Canal Economic Zone (SCZone) reported a significant increase in revenue for the fiscal year(FY) 2023/24, rising to EGP8.245bn, with 72% or EGP5.932bn coming from US dollar-denominated sources, according to a government statement on Monday.

Prime Minister Mostafa Madbouly met with SCZone Chairperson Waleid Gamal El-Din to review the zone’s performance and discuss future plans.

This represents a substantial increase from the EGP2.76bn recorded in the FY 2016/17, marking a 205% growth, Gamal El-Din said.

The revenue surge was attributed to strong performance across various sectors, including Sokhna, East Port Said, West Port Said, Adabiya, Arish, and Al-Tor ports, as well as income from usufruct rights, financial investments, and desalination plants.

Gamal El-Din emphasised the importance of integrating ports, industrial zones, and logistics within the special economic zone framework. He noted that this strategy has positively impacted the revenue of similar zones in neighbouring countries.

In terms of project development, SCZone secured contracts worth $5.116 billion for 218 projects during the fiscal year. Of these, 98 projects valued at $2.225bn received final approval, while 120 projects worth $2.891bn were granted preliminary approval.

These projects are expected to create more than 25,000 direct and indirect job opportunities upon completion.

The number of final approvals for projects increased to 98 in the 2023/24 fiscal year from 59 in the previous year, with a corresponding rise in investment value from $1.99bn to $2.891bn, Gamal El-Din said.

Port projects within the zone also saw growth, with seven projects worth $1.359bn initiated in the past fiscal year compared to just two projects totalling $30m in the previous year.

The SCZone attracted investments from both domestic and international companies, with 89 firms committing to projects worth EGP2.646bn, $110.5m, and €300,000. Foreign investment accounted for 47.2% of this total, coming from countries including China, India, Turkey, the United Arab Emirates, Germany, South Korea, Japan, France, Saudi Arabia, Canada, Syria, the United States, Greece, and Jordan.