Walid Gamal El-Din, Chairman of the General Authority for the Suez Canal Economic Zone (SCZone), and Chen Xiaodong, President of the Jiangsu Guotai company, have inked a landmark deal. The new usufruct contract paves the way for the establishment of a state-of-the-art garment factory set to rise in the Qantara West industrial zone, part of the burgeoning SCZone.
The $10 million investment, equivalent to EGP 500 million, is poised not just to build infrastructure but to create 2,000 direct job opportunities. Situated on a sprawling 21,000 square meters, this factory is positioned to cater to global markets with its full production aimed at exports. This aligns with Egypt’s strategic vision to enhance its global trade footprint and solidify its standing as a hub for international business.
Gamal El-Din’s remarks at the signing ceremony highlighted the SCZone’s ambitious plans to attract worldwide investments. “The increasing pace of new projects in Qantara West shows our region’s potential to become a global investment destination,” he stated, emphasizing its core sectors of textiles, garments, and agribusiness.
The SCZone has already seen a flurry of activity, with 15 projects secured through usufruct agreements. These span over 1,031,000 square meters and total investments of $490 million. Collectively, these initiatives are set to employ over 20,000 workers and target major exports to Europe and the US, facilitated by strategic access to the Port of West Port Said.
With the foundation stones laid for five projects and imminent openings anticipated in 2025, the SCZone is positioning itself as a linchpin of Egypt’s economic strategy. Gamal El-Din underscored the authority’s dedication to fostering local industries, enhancing workforce skills, and leveraging Egypt’s advantageous trade agreements and strategic location.
As global supply chains continue to evolve, Jiangsu Guotai’s entry into the region exemplifies the allure of Egypt’s investment ecosystem. The company, a titan in the textile industry with $9.2 billion in revenues as of 2023, brings a wealth of expertise and an expansive international network. Ranked 329th on the Fortune China 500, Jiangsu Guotai’s expansion into Egypt is a testament to the SCZone’s appeal as a competitive edge in the global market.
With this strategic partnership, Egypt not only fortifies its industrial capabilities but also reinforces its commitment to economic diversification and global integration. The SCZone’s role as a catalyst for economic growth is becoming increasingly pivotal, as it draws in investments and builds bridges with international markets. As the garment factory in Qantara West begins to take shape, it represents more than just economic gain; it signifies a new era of collaboration and prosperity for Egypt and its partners worldwide.
