Investments in Free Zones
Monday، 20 July 2009 12:00 AM
Most countries have free zones on distinguished parts of its lands, as they are one of the economic tools contributing to national economy development by establishing export-oriented industries, attracting modern technology, providing employment opportunities and maximizing foreign currency revenues. These advantages, are achieved by incentives, customs and tax exemptions offered by free zones.
There are 3000 Free Zones around the world and establishing them is become an important world wide development factor due to their valuable contribution in attracting international capital.
Being a distinguished investment type alongside within land investment, free zones will represent, for the coming phase, one of the major Egyptian priorities. Consequently, GAFI offers success factors through an integrated system that provides the best advantages, incentives, exemptions, and guarantees, as well as expands establishment of new specialized free zones. It introduces updated investment activities abiding to free zones system and facilitates project establishment through the one stop shop which provides services, data, and information to investors.
Therefore, your investments in the Egyptian free zones are Considered............ Investments at the heart of the world.
Types of investment in Egypt
Two types of investment were introduced in Egypt abiding by Law No. 8 of 1997:
- Free Zones investment system
- Inland investment system
Types of Free Zones in Egypt:
Free Zones objectives:
- Increase Egyptian exports
- Attract foreign capital, achieve accrued capital
- Introduce new technology specially in the industrial field
- Provide employment opportunities, generate a substanstial skill surge.
Egypt Free Zones
- Alexandria Public Free Zone
- Nasr City Public Free Zone
- Port Said Public Free Zone
- Suez Public Free Zone
- Ismailia Public Free Zone
- Damietta Public Free Zone
- Media Public Free Zone
- Shebin El- Kom Public Free Zone
- Qeft Public Free Zone
- Port Said East Port Public Free Zone
1- Alexandria Public Free Zone
- Alexandria is the second largest city of Egypt and its principal maritime port.
- Overlooking the Mediterranean sea, it is located North West of the Nile delta Situated at 225km distance from Cairo it’s coast extends 70 km from Abu Qir East to Sidi Kerair West,
- Tourism ( Serabium Temple, Roman Theatre, Quaytbay Citadel, Alexandria Library, Hellenic and Roman History Museum.)
- Industrial zones at Borg El-Arab and free zones in Amreya
- Two ports(Eastern port & Dekheila Western port )
Public free zone
- Situated at 20 km. from Nozha International Airport, Borg El-Arab Airport, Alexandria port and located at the center of a network of roads.
- Alex Public free zone is at 7 km from Dekheila Port.
- Located on 5.7 million m2
- Two phases of development:
Basic infrastructure (roads, water networks, sewage system, electricity and telecommunications), integrated customs unit, port security unit, police unit, fire fighting operations unit, services units for transport, shipping and unloading in addition to a parking area for trucks buses and indention to a cafeteria.
(Work on to prepare the second stage) (still in progress) Sanitary & industrial sewage systems and natural gas installment.
Fields of investment
- Industries such as spinning and weaving, ready made clothes, house – hold garments.
- Food processing Alimentary industries and food products.
- Chemicals & petrochemicals industries, fertilizers, petroleum services, and natural gas industrialization and liquefaction.
- Engineering and electronics industries.
- Manufacturing of medical equipment.
Navigation services, maritime shipment, roro (roll on/ roll off) vessels.
2- Nasr City Public Free Zone
Cairo, the capital city of Egypt is the cultural center for the Arab and Islamic world.
The logo of its flag is El- Azhar El-Sharif Mosque and its national day is the 6th of July. Cairo governorate is situated on the East bank of the River Nile overlooking 41.542 Km. of its border.
Populated by 7.3 million citizens, it is visited daily by at least 2 million people for tourism or business purposes.
- It encompasses monuments from various civilizations e.g. Pharaonic Roman, Christian and Islamic.
Among these: (El- Azhar mosque, Salah El-din Citadel, Suspended Church, Khan El- khalily, Egyptian Museum, Cairo International Conference Center, Opera house…)
Public free zone:
- GAFI Free Zone stretches over an area of 168 feddans.
- Site advantages:
- Located within Cairo governorate in the vicinity of Cairo Airport.
- Close proximity from major services.
- Connected through a network of roads and railroads in the vicinity of Cairo airport (15 km).
It is equipped with basic infrastructure availability e. g. roads, water, sewage system, electricity and telecommunications networks. It has an integrated customs unit, a police unit and a security unit).
- Industrial activity represents 90% of the zone's projects.
Fields of investment
- Food processing.
- Pharmaceutical industries and medical equipment.
Spinning and weaving, fabrics and readymade garments.
- Engineering, electric and electronic (parts) industries.
Storage and service logistics in the field of maritime transport, and petroleum sector in addition to seismic survey activities.
3-Port Said Public Free Zone
Port Said Governorate
Located at the North East of the A.R.E., overlooking the North entrance of Suez Canal.
It's a cross roads for trade and the center of communication between East and West.
It's linked with the Coastal International Highway through Port Said / Ismailia desert road and El-Salam International Bridge passing through Suez Canal.
It is characterized by a moderate climate all year round, a diversity of hotels, residence services, universities, tourist and entertainment sites, markets and commercial centers.
Port Said Free Zone
- 729 thousand m2 area Located near Port Said Port.
The free zone has all the basic infrastructures (internal roads, water, networks, sewage system, electricity, telecommunication networks) currently natural gas is being installed).
Fields of investment
- Spinning and weaving, and ready-made clothes.
- Chemicals and leather goods products.
- Food processing industry, cleaning products manufacturing and food packing.
- Sieving and grading agricultural crops.
- House hold& electric appliances.
Services activities (petroleum and maritime services, maintenance and scrapping of ships re-export equipment).
- Goods storage and re-export.
Due to the investors' growing interest in setting up projects in the zone - especially after its inclusion in the QIZ agreement the Authority has annexed two new locations (260 thousand m2) to the Zone (El- Drissa & El- Rasswa). The Authority is working now on the infrastructure utilities necessary for attracting new investment projects.
4-Suez Public Free Zone
- Suez governorate is one of the Canal and Sinai governorates. It is situated East of Delta, North of Suez Gulf, linked with other Egyptian governorates by main roads railroads, a ring road.
- The governorate is famous for its technical training centers, the petroleum-engineering expertise and petrol refineries.
- There are five important ports in Suez governorate: (El-Sokhna port, Tewfiq port, Adabeya port, petrol basin port, and El-Atka fishing port). There are three sorting area, serving export and import commodities, in addition to a specialized area / container for oil tanks.
- The governorate is famous for its natural resources such as (limestone, clay, coal, petroleum, marble, line and stone quarries)
- Suez governorate has many famous tourist attractions such as (El-Ein El-Sokhna area, an important recreational and medical center) in addition to a variety of historic sites like Moses' springs, Muhammad Aly Palace, Roman Catholic Church and Judaic Hill at El- Khoor).
Suez Public Free Zone
- It was established in 1975 on two locations:-
- Port Tewfik location (an area of 75660 m2), adjacent to Suez port's fence.
- Adabeya location (an area of 247208 m2) overlooking Suez bay coast at 5km distance from Adabeya Port.
Suez city is a strategically located. Its maritime and commercial port enjoys additional advantages e. g.:(roads & communication networks, five ports, faculties and institutes and labor force).
It is equipped with utilities and basic infrastructure (roads, water, sewage system, electricity, telecommunications network, a customs integrated unit, a maritime unit and a security unit).
Fields of investment
Petrochemicals industry, tints and detergents, fertilizers, petroleum services and petroleum equipment leasing, petrol refineries, and natural gas liquefaction.
Glass industry, all types of iron industry, metal products.
Ships, yachts and fishing boats industry, navigation services, ship supplying and provisioning.
- Coal fracturing and carbon industries.
Administrative Management and operation of port maritime services.
5- Ismailia Public Free Zone
- Overlooking the Suez Canal Ismailia is strategically located between Suez & Port Said Ports at a short distance from the International Coastal Highway (5km), a railway network as well as roads and highway networks linking it to all the nearby governorates and ports.
- Considered as the Canal district's capital, it offers abundant skilled and qualified labor and enjoys a moderate weather throughout the year.
- It has tourist attraction areas e. g. lakes (El-temsah & El Morra), tourist sites (Antiquities museum, De Leseps museum Commonwealth tombs at El-Tal El-Kebir).
- It has two industrial zones; the first (an area of 535 feddans) and the second at East Qantara (an area of 910 feddans), in addition to the Technology Valley and a public free zone.
- Agrarian investment is available through El-Salam mega waterway project.
Ismailia Public Free Zone
- Situated at Cairo/Port Said Desert Road, (an area of 775 feddans (325000 m2). Its first phase is fully equipped with infrastructure facilities. (An area of 100 feddans (420000 m2).
- It's 30 km away from Mubarak's El-Salam Bridge crosses over Suez Canal to the continent of Asia, it is located near the ports (85km from Port Said port, and Suez Port, 120 km from Cairo Airport and 125 km from Damietta Port. A highway network links the area to all governorates).
- The Free Zone is located near the first and second industrial parks, and near the Technology Valley.
- It is equipped with basic infrastructure such as: (roads, water and sewage networks, electricity and telecommunications. It has an integrated customs unit, a port security unit).
- Natural gas may be delivered to the projects upon the owner's request.
Fields of investment:
- Ready made garments, leather and leather products.
- Computers & electronic hardware, software & IT systems.
- Chemicals & fertilizers, petroleum services, petroleum equipment leasing.
- Good’s storage and re-export.
6- Damietta Public Free Zone
- Damietta governorate lays at North of the delta, overlooking the east bank of the river Nile.
- Due to the diversity of its economic activity, and its reliance on the human qualified factor as well as small productive units mostly owned and run by the private sector, the governorate is considered as one of the best economic patterns.
- The Damietta port was inaugurated in 1986 which is considered as an alternate port to Alexandria to decrease the freight costs, ships demurrage, and to promote the transportation of containers activity, it soon developed into an important transit port embracing the biggest containers' area around the country.
- The governorate has an industrial park near Damietta east port, covering an area of 190 feddans allocated for the establishment of export industries projects and an industrial park south of New Damietta city on 300 feddans area.
Public Free Zone
- The zone is situated in a unique location overlooking the Mediterranean Sea 55km West of Port Said's port. As it is adjacent to Damietta port's fence it helps to decrease the transportation and insurance costs for commodities handling. In addition to the completion of all customs procedures directly in the zone.
- Main railway lines connect it to Cairo and Alexandria, railroads for goods transportation, plus a network of roads that link it to the other governorates. In addition to The International Coastal Highway, Damietta has also a maritime channel, which links it with the Mediterranean countries, and a river canal linking it with the Egyptian cities.
The zone, 190 feddans has all basic infrastructure facilities (roads, water networks, sewage, system electricity and telecommunications networks).
Fields of investment
- Petrochemicals, petroleum services, gas liquefaction.
- Medical equipments, computers and electronic hardware assembly
- Spinning & weaving and ready-made garments, food processing.
- Maritime transport activity, maritime services.
- Furniture and wooden products manufacturing
7- Media Public Free Zone
The 6th of October city:
- The city is located within El-Giza governorate, dotted with a new network of roads and transportations.
- Being above the sea surface level has endowed it with a pleasant weather throughout the year (summer and winter). Its architectural design allowed a variety of housing standards provided with public services
- It has an industrial zone, a media public free zone ( Media Production City) and a tourist site containing projects, villages and clubs.
Media Public Free Zone
- Established in 2000 as a public Free Zone with a special nature, focused on the artistic and media production activities along with the relevant productive and services activities.
- Stretched out on a 3 million m2 area, the Media Public Free Zone is considered as a district outside the customs territory of the country.
- Managed by GAFI, It is the first area in Egypt where the private sector owns most of the land.
Fields of investment
- Radio, television and satellite broadcasting.
- Producing radio, television, cinema programs along with media and artistic production.
- Producing, manufacturing and assembling materials and equipments necessary for the media activities.
- Offering, advertising, informative media and public relations services.
- Organizing exhibitions for local and international companies specialized in media products and communication equipments.
- Hotels, tourist facilities, and shopping centers submitting services to the free zone.
8- Shebin El- Kom Public Free Zone
- Menofia Governorate is situated at the central Delta region. Agriculture is considered as one of its main activities.
- Menofia is famous for its cotton, maize, wheat crops production and export, in addition to its exportable vegetables such as potatoes and green beans.
- It embodies mega projects and export oriented industries (spinning and weaving, silk carpets and mother of pearl products), aside with marble, granite and sponges industries. In addition to 3 industrial zones.
Shebin El- Kom Public Free Zone
- The zone is situated on 20 feddans area as a first phase (84 thousand m2), to be extended to 48 feddans on its second phase.
- It is located within the property of Misr/ Shebin El-Kom spinning
and Weaving Company, near the tricot and spinning affiliated factories. 12 km far from Cairo/Alexandria agricultural road, 70 km Cairo and from Sadat City and Cairo/Alexandria desert road.
- It has a high population density, as well as well trained and low cost labor.
Fields of investment
- Main activities : spinning and weaving
- Secondary activities (21feddans area ): complementary industries (ready made garments, weaving industries ,tanning & preparing the ready made garments, tobacco and food processing)
9- Qeft Public Free Zone
- Qena is one of the Upper Egypt's governorates, it is located 640 km away from Cairo, and extends 240 km east and west of the river Nile, with a population estimated by 2.7 million.
- It is ranked first for sugar cane, tomatoes, bananas, sesame and hibiscus production.
- The governorate has four sugar factories as well as one spinning and weaving factory, in addition to the aluminum complex considered as the biggest industrial citadel in the Middle East.
- The governorate also includes three industrial parks: Qeft on a surface area of 595 feddans, Nagaa Hamady on a surface area of 636 feddans and Qena Small Industries Complex on a surface area of 50 feddans.
- The governorate has several tourist sites and Pharaoh Monuments.
The public free zone
- The zone is situated on a surface area of 216 feddans , it benefits from its location as it is directly overlooking Qeft/EL-Quseir desert road.
- 7 km far from Cairo/Aswan road, 30km from Qena city, 45km from
Luxor city, 180 km from El- Quseir Port, 250 km from Safaga Port.
- Labor force is provided as governorate’s citizens and the nearby cities especially Luxor.
- Infrastructure availability for (a mobile and a fixed power transformer units, a central water pipeline, a complex of wells, a Nile water outlet, in addition to firefighting Facilities as well as an air oxidized internal sewage network and a telephone central) a power station is under establishment.
Fields of investment
- The establishment of an industrial complex for the Pharmaceutical industries and its feeder industries.
- There are several free zone projects working in the Pharmaceutical industries and in other fields: food processing engineering.
Zone free spaces in allocated through acquisition system free of charges. No charges (the zone free space is allocated through possession free of charges).
10- Port Said East Port Public Free Zone
- Established in 1995, focused on containers and transit activities, its borders were adjusted in 2003 to be parallel to the borders of the pivotal Port Said East port.
- An area of 35.4 million m2.
- An intermediate location between the international trade lines makes it an important distribution and logistic business center, serving the entire Mediterranean area and neighboring regions.
- A good potential of industrial integration and commodities exchange with the adjacent industrial zones and its projects.
- Port Said authority port is the one entitled to implement basic infrastructure facilities. It accomplished the implementation of new entry canal streaming directly from the sea, in addition to the establishment of a containers (dock).
- The Suez Canal for Containers Company, has built a container station according to the B.O.T system, with a capacity of 600 thousand containers yearly, estimated to leach 1.2 million containers in the next few years.
Five huge cranes with 1200 tones capacity to be expanded to 12 cranes during the next phase.