The Largest Chinese Industrial Zone is to Be Established in Egypt
Economic and Trade Relations Between China and Egypt
Over the past years, Chinese investments in Egypt represent a prominent success story in the Egyptian-Chinese economic relations’ history, to the point that it has now become an industrial base for attracting Chinese investments abroad, as economic and trade relations are the basis of cooperation between the two countries, which they take many measures and steps for economic and trade cooperation.
It is worth mentioning that Chinese investments in Egypt are considered the fastest growing since China is Egypt’s largest trading partner and because Egypt has the industrial capabilities and resources that qualify it to become one of the industrial pioneers in the region.
The largest Chinese Industrial Zone is to Be Established on the Mediterranean Coast
China is preparing to implement an industrial and commercial logistics project in Egypt that will be considered the largest investment in the Arab region. This project will reflect on supporting economic and trade relations between China and Egypt.
The actual procedures to launch this project have begun, and the two governments have coordinated to announce the final project’s form in the upcoming days.
The Goal of Establishing the Largest Chinese Industrial Zone in Egypt
The deal to establish the largest Chinese industrial zone in Egypt comes after the success of the Ras El-Hekma deal, which gave the major countries positive indicators about the future of the Egyptian economy. The project also comes as a continuation of the state’s plan to control the devaluation of the Egyptian pound against the dollar and within the framework of President Abdel Fattah El-Sisi’s directive regarding the localization of strategic industries and working to attract foreign investments, as well as within the framework of the plan to reduce external public debt and work to benefit from Egypt’s accession to the BRICS.
Details about this Project
According to the agreement between the Egyptian government and the Chinese side, the largest Chinese industrial zone will be established on the Mediterranean Sea and divided into two parts: a traditional industrial zone and another zone specialized in technological industries with high added value, which will contribute to the transfer of expertise, provide the latest technological means for workers, and make Egypt an industrial and export hub for Chinese products.
In addition, this industrial zone will stimulate innovation and technological development in Egypt, as technology and knowledge will be transferred from Chinese companies participating in the project. It will also achieve environmental benefits as it will apply high environmental standards and encourage the adoption of eco-friendly technologies and measures to preserve the surrounding environment. This zone will also contribute to increasing Egyptian exports and improving the competitiveness of local industries. It will also attract other foreign investments to Egypt, which pushes the national economy towards development and prosperity.
The Strategic Importance of the Largest Chinese Industrial Zone
The largest Chinese industrial zone will include many strategic industries, such as textile industries, the electric car industry and its feeding industries, and the petrochemical in addition to the logistics industry, which will qualify it for export and increase its export rates, whether to China or other countries, as well as millions of job opportunities for Egyptians.
Speeches of the Chinese and Egyptian Ministers of Trade
Engineer Ahmed Samir, Minister of Trade and Industry, pointed out that the establishment of the largest Chinese industrial zone on the Mediterranean paved the way for a new phase of cooperation and strengthened relations between the two countries, which came within the framework of the comprehensive strategic partnership.
For his part, Wang Wentao, Chinese Minister of Commerce, stressed his country’s keenness to strengthen the framework of joint economic cooperation with Egypt as it is a pivotal country in the Middle East and the African continent and an essential hub for exports to the markets of European continents and the United States of America, noting that Egypt and China linked by historical bilateral relations that can be translating into concrete trade and investment cooperation projects that benefit the economies of both countries alike.
And now you have learned everything related to establishing the largest Chinese industrial zone on the Mediterranean coast, which will support economic and trade relations between China and Egypt.
AHG in Industry and Trade
When you deal with new business models or new customer expectations in the manufacturing industry, it becomes crucial to embrace creative ideas, develop new strategies, and seek wise financial guidance. Look no more! AHG Chartered Accountants is here to provide you with the expertise needed to enhance your company’s performance and drive sustainable business growth.
Our team at AHG will offer high-quality services for your manufacturing business. We will evaluate your business model and implement tax and accounting solutions to help you achieve better results. We will also design and implement solutions and systems to save you time and money while better preparing you for the future.