KUALA LUMPUR:Malaysian investors have been invited to develop the North-West Gulf of Suez Special Economic Zone, near Port of Sokhna, in Egypt.
In extending the invitation, General Authority for the Economic Zone North-West Gulf of Suez (SEzone) chairman Ahmed Amin said that in 2002, Egypt passed a law outlining the government’s strategy to develop special economic zones.
He said the SEzone, covering 20.4 square kilometres, at the southern tip of the Suez Canal, is the first to be developed under the law.
“The law gives a robust empowerment for the Authority to act as a sole regulator for our area and gives a slew of incentives and guarantees.
“For example, we have a 10 per cent general income tax, instead of 20 per cent for the rest of Egypt, five per cent of personal income and all imports of the zone are exempted from all taxes and duties,” he told Bernama at a luncheon hosted by the Authority for the Malaysian delegation who attended the second Malaysia-Egypt Palm Oil Trade Fair and Seminar (POTS Egypt 2010) in Cairo recently.
The event was a platform to empower Malaysia-Egypt partnership and to capitalise on opportunities in the palm oil trade in the Middle East region.
It was co-organised by the Malaysian Palm Oil Council (MPOC) and the Malaysian Palm Oil Board (MPOB) in collaboration with the Egypt General Authority For Investment and Chamber of Food Industries Egypt.
SEzone is at the centre of the Egyptian government’s efforts to woo foreign investment to Egypt and to develop the country’s industrial sector.
The project covers 20.4 square kilometres at the southern tip of the Suez Canal.
Apart from the domestic market, Ahmed said investors only pay for the foreign component of the products, adding that exporters could also benefit from the certificate of origin to be issued by the Egyptian authorities.
“They will also benefit from the exports which are not bound to duties and quotas, especially for markets like the central and east Africa, Europe and the United States,” he said.
Egypt, a member of the Greater Arab Free Trade Area (GAFTA), signed a Partnership Cooperation Agreement with the European Union (EU) and have a trade pact with the United States.
In terms of development, Ahmed said Egypt offered opportunities for developers of zones to build, finance and design infrastructures.
“They will also have the benefits to sell and provide utilities to investors and end-users in the area,” he said.
He said investors are also encouraged to invest in the manufacturing sector.
“We are targeting the light and medium sectors and the logistics services apart from residential, commercial and entertainment areas.
“Being the sole regulator, we are empowered to operate as a one-stop centre for services with regard to the incorporation of companies and other related services.
“This means that we are the decision maker for incorporation of companies, licensing and issuance of permits for foreign labour,” he said.
Ahmed said the Authority was coming up with a new city project, a joint venture between the Suez Governor, Housing and Urban Development Ministry.
“We’ve set up a committee and have chosen the location for the new city. We are in the midst of picking the successful bidder to develop the city,” he said.
Ahmed said SEzone has not been taken up yet but “we intend to give about six square kilometres to a Chinese company to establish a complete industrial and services zone. Besides China, we also like to invite investors from Malaysia and other countries,” he said.
He said Egypt has a very unique geographical location as it bridges the continents of Africa and Asia.
“It is very close through the Mediterranean to Europe either by sea or air.
“So, we consider Egypt as a very good location for logistics hub and for multinationals and global companies to set up warehousing and distribution centres,” he added. — Bernama