A New China is Forming Around the Suez Canal in Egypt

The area surrounding the Suez Canal has become a stronghold for Chinese companies in Egypt, with a continuous influx of investments and Chinese investors, leading to the establishment of 125 projects in the region aimed at export, making them the second most active nationality after Egyptians in launching projects in the area, which Prime Minister Mostafa Madbouly described as a hub for foreign investors in Egypt.

Chinese investments rose by $2.7 billion in the first 11 months of this year to reach $5.7 billion in November compared to $3 billion, according to previous data from the authority.

Walid Gamal El-Din, head of the Suez Canal Economic Zone, stated that the authority has successfully attracted investments estimated at about $11.6 billion over the past three and a half years, with 50% of these being Chinese investments.

He added that cooperation with the Chinese "Teda" zone within the economic zone has reached over 200 industrial, service, and logistics projects with total investments exceeding $3 billion, while cooperation with Chinese investments in the industrial area of Qantara West has surpassed approximately $700 million.

During this year, the authority has signed dozens of contracts with Chinese companies, the largest being a $1 billion contract with the Chinese company "Sailun" for manufacturing car tires, as well as a contract with CJN to establish a phosphate fertilizer plant in "Sokhna 360," which is being developed by the Swedish Industrial Development Company in the Suez Canal Economic Zone with investments reaching $1 billion.

The ease of procedures and exemptions provided by the Suez Canal Economic Zone and its location connecting continents have made it a gateway for billions of consumers, turning it into a magnet for Chinese investors, with increased interest amid the trade tensions caused by U.S. tariffs.

Egypt is Seeking to Attract Chinese Investments

Egyptian Minister of Investment and Foreign Trade Hassan El-Khatib stated that Egypt is intensifying its efforts to attract more Chinese investments in key industrial and technological sectors.

El-Khatib added, in an interview with the Chinese news agency "Xinhua," that the upcoming phase should witness an expansion of the joint production base and attract more Chinese investments to support local manufacturing, enhance value-added industries, and bolster exports to regional and international markets.

The Egyptian minister emphasized that China has always been a strategic partner for Egypt, noting the increasing number of Chinese companies operating in the country across various sectors.

According to a previous statement from the General Authority for Investment, there are more than 2,800 Chinese companies in Egypt with investments exceeding $8 billion, operating in various sectors. This includes major projects such as the Central Business District in the New Administrative Capital and factories for car production.