The Suez Economic and Trade Cooperation Zone is one of the second batch of state-level overseas economic and trade cooperation zones created under the auspices of the Chinese government. It is a key cooperation zone to be built with China's best resources. Construction started in 2008, and China-Africa TEDA Investment Co. Ltd. is the entity for the development.
Located in Egypt's Northwest Gulf of Suez Economic Zone in the triangle between Asia, Africa and Europe, the starting area covers 1.34 square kilometers. The initial development has been completed, with about US$900 million of investment.
By the end of 2015, 68 enterprises had settled in the starting area, including 33 manufacturing enterprises (29 Chinese-funded) and 35 service companies. It has absorbed US$900 million of agreed investment. There are five industrial parks for different businesses: petroleum equipment manufacturing (Honghua Group), high and low voltage electric equipment (XD-EGEMAC High Voltage Electric Equipment Co.), textile and garments (China Textile Machinery Non-woven Fabrics Co.), new building materials (China Jushi fiberglass), and machinery manufacturing (Muyang Storage Engineering). Upstream and downstream industries have been attracted to produce cluster effects.
In September 2014, China and Egypt agreed to expand the zone by 6 square kilometers, which will be developed in three phases with a total investment of UD$230 million. The expanded zone will accommodate 150-180 residential enterprises, and create more than 10,000 jobs for the Egyptians. On November 30, 2015, China's TEDA Investment Co. signed a land transfer agreement, by which it received two square kilometers of land from the Egyptian side. During his visit to Egypt, Chinese President Xi Jinping unveiled the expansion zone together with Egyptian President Abdel Fattah al-Sisi.
Promoted by the Egyptian Suez Canal Corridor Development Plan and the Belt and Road Initiative, a modern industrial city is blossoming on the barren beach by the Red Sea, showcasing Sino-Egyptian cooperation.
