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01 ABOUT SCZONE
02 SCZONE STRATEGY 2020-2025
03 INVESTMENT OPPORTUNITIES
CONTENT
01 ABOUT SCZONE
Sea PortsIndustrial Zones
4 industrial zones
6 Sea Ports
A PROMISING INVESTMENT ZONE WITH TOTAL AREA OF 461 K.M2
▪ Located around the main international maritime route.
▪ 12% of the international trade pass through.▪ Over 18,000 ships passing through each year.
ABOUT SCZONE
1. Sokna Industrial Zone2. East Port Said Industrial Zone3. Qantara West Industrial Zone4. Ismailia East Industrial Zone
1. Sokna Port2. Adabeya Port3. Al Tor Port4. East PortSaid Port5. West PortSaid Port6. Al Arish Port
FACTS
461MILLION M2
TOTAL AREA
4INDUSTRIAL
ZONES
6SEA PORTS
250OPERATIONAL
ESTABLISHMENT
18bn USDTOTAL
INVESTMENT
COST
100KDIRECT JOB
OPPORTUNITIES
14INDUSTRIAL DEVELOPERS
3MAIN PORTS
OPERATORS
Sinai- North
Sinai- South
East
Port Said
Ismailia
Suez
Cairo
Qantara East Road
Mediterranean Sea
Gulf of Suez
Coastal Highway
Cairo-Sokhna Highway
Cairo-Suez Highway
Regional Ring Road
PS Tunnels
Ismailia Tunnels
Suez Tunnels
Suez-Sokhna Road
30 June Axis
Port Said-Ismailia Highway
Cairo-Ismailia Highway
Arish Road
Ring Road
Port Said
ADM Capital
Sharm Road
The Delta
<<< To Alexandria City
Sokhna
CONNECTIVITY
SCZONE
Cairo - Dakar
Algeria - Lagos
Tripoli - Cape town
Cairo - Cape town
Dakar - Lagos - Mombasa
Beira - Lobito
One of the largest industrial and port complexes globally, with an area of 210 km² supporting light, medium and heavy manufacturing activities, as well as commercial and business activities and capacity to host over 85k job opportunities.Sokhna Port:Egypt’s main gateway to the GCC, East Africa and Asia, Located at the southern entrance to the Suez Canal.
SOKHNA INTEGRATED ZONE
Sokhna Port
•Container, Dry bulk, Liquid-Bulk and General Cargo terminals
•On going new development:
•12 km quays with 17 m depth.
•Backyards of 5.6 km2 and Logistic areas of 5.3 km2
•10 km of railways to be connected to (Sokhna/New AlamainElectric Train).
Sokhna port
•Water capacity more than 100K M3/day
•Waste water capacity 35K M3/day
•Energy 1500 MVA Utilities
•Heavy industries including steel, glass, fertilizers
•Access to feedstock of petroleum, gas, methanol and others
Value Chain element
An integrated zone at the northern entrance of the Suez Canal with sea port/ logistic areas/ industrial zone to serve Mediterranean area, East Africa, Middle East and Eastern Europe.The industrial zone earmarked for light and medium manufacturing, and business activities with the capacity to support over 80k jobs.EPS Port • is well-positioned as a major transshipment hub and gateway port, Located
alongside the Suez Canal, with sheltered deep water facilities capable of accommodating very large vessels.
• Recent expansion added quay lengths of 5 km of new Q-walls reaching 7.4 km in total & 18.5 m of draft.
PORT SAID INTEGRATED ZONE
•Existing Container terminal (SCCT)
•Upcoming General Cargo terminal, RO/RO terminal, and a Dry-Bulk terminal
EPS port
Terminals
•A water plant is being built with 150,000 and 100,000 m3/day for water and wastewater respectively (including water disposal services) serving the zone.
•Electricity Substation 125*2 MVA
Utilities
•various of manufacturing activities and a wide range of industrial clusters
•Recently launched logistic and maritime services
Value Chain element
EAST PORT SAID / Integration
Industrial Area
Logistic Areas
Port Said Tunnels
East Port
Mediterranean Sea
North
Envisioned as a vibrant new community next to the Suez Canal where approximately 13.6 km2 currently available for development in an area well supplied with water, electricity and sewage.Located close to farmland in Ismailia and Sharqia Governorates on the road to Port Said-Ismailia, Qantara West benefits from proximity to the fertile Delta and is ideal for agribusiness. Suitable logistics enterprises include warehousing and fulfillment services, transportation and distribution, freight forwarding, Pick & Pack, to name but a few.
Light Industries SMES’ Parks Agri-Business
Feeding &Integrated Industries
Food Processing &Beverages
Textiles & Ready-Made Garments
Related Logistics/ Dry Port
Support Services forIndustries
Commercial Uses
Community Facilities
The targeted land use:
QANTARA WEST INDUSTRIAL ZONE
The project aims to create a new urban society that depends on economic activity resulting from the interaction of investment, education and scientific research based on high-tech industries.
This Zone occupies a strategic location on the East Bank of the Suez Canal in the center of the scope of Qantara East with a total area of 70 km2 on the East axis directly, and away from the axis of Suez Canal distance of 10 km and 3 km from Ismailia new tunnels and adjusted to The New Ismailia City.
High
Technology
Industries
Renewable
Energy
Integrated
Industries
Commercial &
Community
Uses
Educational & Scientific research institutions
The targeted land use:
ISMAILIA EAST INDUSTRIAL ZONE (TECH. VALLEY)
UTILITIES & INFRASTRUCTURE
POWER
• 7 Power Sub-Stations
• 13 Power Distributors
WATER SUPPLY
• 2 Sea Water Desalination Plants
• Water Lift Plant & Storage
WATER TREATMENT
• 2 Treatment Plants + Pipeline
• 6 Sewage Treatment Compact Units
Communication
• 3 Communication Central + Fiber Optics Cables
NATURAL GAS
• Pressure Reduction Unit + Pipeline Net
02 SCZONE STRATEGY 2020-2025
“Become a leading world-class economic hub and a preferred destination for investment”
SCZONE VISION
With a strategic objective to dynamically contribute to Egypt’s growth rate, while also foster SCZONE’s position as an international Investment hub and an export platform with a distinctive access to Africa, SCZONE adopted its 2020-2025 strategy
• Create investment opportunities in industrial and maritime sectors
• Localize targeted industries to substitute imports
• Adopt industrial clusters policy
• Apply a World-Class infrastructure
• Capitalize on SCZONE’s role as a global logistics hub amid international supply chains
• Target investments and attract international shipping lines to the ports
• Introduce an effective mechanism for maritime services and bunkering facilities
• Develop platforms for small and medium enterprises
• Establish financial, commercial and services centers
• Launch a new business identity and organizational reforms
SCZONE STRATEGY & OBJECTIVES
5 MAIN PILLARS FOR STRATEGY IMPLEMENTATION
Land ownership
Foreign ownership
Dispute resolution system
Primary infrastructure development3
Social services and lifestyle availability▪ Hiring
limitations
▪ Fire and hire
procedures
Local
workforce
▪ Quality of talent
▪ Labor productivity
Market connectivity through
transport system
Network ecosystem
Global
business
indicators7
Utilities prices
Land lease cost
▪ Registration
▪ Licensing
▪ Trading across borders
▪ Global enabling trade
▪ Ease of doing business
▪ Global competitiveness
Tenant
services8
Corporate tax
Personal tax
Corporate loan rate
Financial subsidies6
Regime Customs
Shipping cost
Telecom cost
One-stop shop
Construction cost
Labor cost
Capital repatriation
Regulatory
framework
2Set-up and
ecosystem
readiness
1
Cost
positioning
Service level
provided
4
5 3Financial
incentives
Labor
flexibility
As a commercial operation, shareholder value creation will be a driver of businessdecisions. By delivering strong financial results and investing in the future, SCZONE will boost regional wealth and employment
SCZONE is dedicated to an activeresponse to the long-term impacts of its projects and to enhancing the natural environment. SCZONE’s sustainability goals are to maximize energy, water and waste efficiencies, managing developmental impacts, balancing built environment
SCZONE is built upon a strong foundation of corporate social responsibility and a philosophy of partnership building between owners, users and neighbors
SCZONE is committed to safe, secure and continuous operation of its facilities as both an objective and necessity. For SCZONE, business continuity will be tied to ensuring regulatory compliance and maintaining the necessary capacity to operate and expand its operations
4 MAIN PILLARS FOR SUSTAINABILITY
DIRECT INCENTIVES
0%
Custom Tax
0%
VAT
Corporate Tax
(incentives for 7 Years)
▪ 0% Customs on all project’s components imported from abroad under the condition
of exporting the final products
▪ In the case of exporting to the local market: custom tax will be applied on the
imported components only
▪ 0% VAT applied whether importing from local or foreign markets to SCZONE, on all
procurements required for manufacturing, production, operation (raw materials,
components, spare parts, etc.)
▪ 14% VAT is applied on exporting products from SCZONE to the local market
▪ Discount on Corporate Tax (net profit) equivalent to 50% of project investment costs
▪ Discount shall be attributed maximum to 80% from the paid-up capital
INDIRECT INCENTIVES
LABOR-INTENSIVE PROJECTS USING
LOCAL COMPONENT IN
THEIR PRODUCTS WILL BE GRANTED
CUSTOMS NEW GUIDE 2020
5-YEAR RESIDENCY PERMIT TO FOREIGN
INVESTORS
DIGITAL TRANSFORMATION
▪ Reduced prices or facilitate the payment of the value of the energy
▪ Full/Partial reimbursement of the utilities cost related to the project’s allocated land when done by the investors
▪ SCZONE shall pay the Egyptian employees and the employer’s share in the insurances, or part thereof, for a specified period
▪ Promote more healthy investment climate
▪ Enhance procedure transparency
▪ Simplify and facilitate the procedures of the document release through e-system
▪ Facilitate penetration to the local market
▪ Investors have the right to obtain residency for a period of 5 continuous years, renewable for similar periods throughout the duration of the project.
▪ New website to facilitate investors transactions through digital services
Main features of the Rules
SCZone issued rules regulating the import and export to/from the zone (different from the general rules adapted by the state, aiming to facilitate procedure/transaction of the projects especially the projects with productive nature, treating the end products as a national product aiming to (reducing cost, time of regulatory examination on shipments as well as minimizing the number of verification documents), In order to achieve competitiveness.
THE CUSTOMS SYSTEM
Import and Export Rules
Special regulationRelationship to public
affairsPreference for
productive projectsInfrastructure
Famous foreign branches
Certificates of originProportions of
manufacturing and local ingredient
Registration in the register of exporters
and importers
The Main Features of The New Program
Joined on 1/7/2021 for a period of three years, the program included an increase in support to export activities by up to 50% compared to the previous program, representing a great stimulus to the productive sectors to continue their growth in exports to foreign markets, Leading to the development of the national industry as well as supporting the small and medium enterprises (SMEs) sector.
Employment Support
Support For Participation In
Exhibitions
Increase Support By Increasing The Local Component
Support air freight programs
Made In
Egypt Mark
Cooperation And Integration With
Agencies
Program of “Support and Return of Export Burdens”
THE CUSTOMS SYSTEM
THE CUSTOMS SYSTEM
Customs exemption on imports
Creating an Integrated Industrial
Community
Establishing a Logistic Platform to Serve International
Trade
Reducing Time of Release of Shipments
Reducing CostsFacilitating
replacement of imports from abroad
Electronic documents
Increasing building capacity by Training
Creatinga digital platform
Supporting the port community
SCZone’sIndependency of
managing the Customs System
The special customs regime for the SCZonePromotes:
Customs Patrols
Monitoring Beacons
GPS tracking
Gate Fast Track
Normal Gate
Port Boarders
Customs Logistic Center Boarder
Customs Logistic Center BoarderE-Gates
X-Ray Check
Weight Scale Zone
Trucks Parking
Customs Complex
Integrated Non-Customs Business Center
CUSTOMS SINGLE WINDOW PROJECT IDEA
03 INVESTMENT OPPORTUNITIES
Cu
rre
nt
SHORT TERM
• Significant focus on financial incentives, specifically for targeted sectors
• Accelerate implementation of initiatives to strengthen regulatory framework and service levels
LONG TERM
• Focus on increased ecosystem readiness
• Financial incentives to be reduced after 4 other dimensions become strong enough to attract tenants on their own
FUTURE PLANS TO ATTRACT AND LOCALIZE THE TARGETED INDUSTRIES
INDUSTRIAL CLUSTERS DISTRIBUTION
TARGETED SECTORS/ INDUSTRIES
BATTERIES (BEV)CASTING
& FOUNDRYTIRES
ManufacturingROLLING STOCK
TEXTILE & READY MADE GARMENTS
CONSUMER ELECTRONICS
SOLAR CELLS& PV SYSTEMS
BUILDING MATERIALS
PHARMACEUTICALAPI
ManufacturingMEDICAL DEVICES LOGISTICS
AGRI-BUSINESS&
FOOD PROCESSING
PETROCHEMICALS
DATA CENTERS
