400 Factories to Operate in Egypt's Suez Canal Economic Zone by 2028

The Suez Canal Economic Zone is set to have nearly 400 factories in operation within the next two years, with 176 facilities currently under construction expected to be completed within 18 to 24 months, according to Prime Minister Mostafa Madbouly.

The zone currently has 212 operating factories employing tens of thousands of Egyptian workers, around 140 of which were established over the past four years.

Nine industrial projects worth a combined USD 84.5 million were also inaugurated during Madbouly’s visit, covering new factories, expansions and initial operating phases intended for later scale-up. The projects are expected to create nearly 2,000 jobs across sectors including building materials, furniture, textiles, artificial turf, chemicals, mining, engineering, electrical equipment and medical supplies.

Between 70% and 100% of output from the new projects is expected to be exported, with the remainder serving the domestic market. Local components account for at least 40% of production at the newly inaugurated factories, reaching as high as 95% at some other plants in the zone.

Madbouly said the SCZone’s expansion is supported by its links to Ain Sokhna Port, road networks and railway infrastructure, while the government is working to address private-sector requirements. The private sector is targeted to account for 75% of total investment by 2030.

Major projects under development include a planned USD 2 billion integrated tyre complex by China’s Linglong and a separate USD 500 million, three-phase tyre manufacturing complex in the Sokhna Industrial Zone. A third phase of the China–Egypt TEDA Suez Economic and Trade Cooperation Zone is also planned within the SCZone.

SCZone revenues rose 37% year on year to EGP 15.9 billion in FY2025/2026, while the zone is expected to contribute between USD 3 billion and USD 5 billion annually to GDP over the medium term.