Egypt and China Launch Third Phase of Suez Canal Industrial Zone Expansion

Egypt and China have officially launched the third phase of their joint industrial area within the Suez Canal Economic Zone. This expansion was announced by Egyptian President Abdel Fattah El Sisi and Chinese President Xi Jinping during President Xi's first visit to Egypt in a decade.

The initiative seeks to significantly boost foreign investment in Egypt's strategic sectors, including renewable energy, automotive manufacturing, and chemicals. Chinese companies invested $12 billion in the Egyptian market last year, with current trade between the two nations valued at $20 billion.

Key Investments Announced

• Linglong Tire Investment: China's Linglong Tire recently signed a memorandum of understanding with the Egyptian industry ministry, committing $2 billion to establish an industrial complex. This complex will focus on manufacturing tyres for passenger cars and buses, as well as equipment and conveyor belts, and is projected to create over 5,000 jobs. While specific details were not provided in the announcement, an earlier cabinet statement in April indicated the complex would be located in the Borg El-Arab industrial zone in Alexandria.
• Sailun Group Partnership: Last month, Cairo and China's Sailun Group also signed an agreement for a $1 billion automotive tire factory within the Suez Canal Economic Zone.

This expansion builds on previous efforts, with the Chinese-developed industrial area in the Suez Canal Economic Zone having already attracted nearly $4 billion in investments from Beijing. Overall, nearly 3,000 Chinese companies have invested more than $8 billion in Egypt's industries.

Egypt's exports to China have shown substantial growth, rising from $280 million in the first half of 2025 to $840 million in the first half of this year, according to Egypt’s Central Agency for Public Mobilisation and Statistics.