Mubarak reviews development project in Gulf of Suez
Egypt, Economics, 2/9/2000

President Hosni Mubarak yesterday said the government was attaching great importance to a new project aimed at developing the area northwest to the Gulf of Suez.

Mubarak dedicated a meeting with the Ministerial Committee for mega national projects to discuss the scheme. Information Minister Safwat el-Sherif told reporters after the meeting that the President underscored the importance of the project and its location.

"The meeting discussed the studies of the economic zone in the northwest Suez Canal. President Mubarak is giving great attention to this project after the studies proved it could attract capitals and international companies," Sherif told reporters.

He added that the project's distinguished location would make it suitable to accommodate different industries, including petrochemicals, textiles and electronics industries. "It has a pivotal location that can serve trade and industry in the Middle East, Asia and Africa," Sherif said.

He added that the studies, prepared by the world's most prestigious consultancy firms, confirmed that the targeted project would match similar zones in southeast Asia and Latin America. "The studies outlined the advantages of these zones and the difficulties they faced in order to avoid them while creating new zone in Egypt," he said.

"In view of these studies, President Mubarak said the project should have a special nature. It will be a duplication of the tax-free zones or other systems applied in free industrial and new cities," Sherif expounded.

"Mubarak also ordered the formation of a working group with representatives from the ministries concerned and the companies working in the area to review the studies on the project," Sherif noted. "The working group would also be responsible for studying the role of the government in supervising the zone.

This economic zone will be run by an independent agency set up by the government for this particular purpose," he said. "The working group would also study the best way to run and develop the zone and attract investments," he said, adding that a company may be founded to run the zone's utilities in addition to managing land allocations. "The proposed authority (to run the zone) will represent the government and will have the final say in customs, taxes and other issues," he said.

"On the other hand, the proposed company will be in charge of running the development projects and will be responsible for dealing with investors directly," he added. Sherif said that Mubarak expected the 220-million-square-meter area to attract Egyptian, Arab and international investments, adding that the government would not launch public investments in the area.

Mubarak, who will convene another ministerial meeting today to discuss a development project in Shark al-Tafrea, east of Port Said, said that all needed infrastructure have been completed in the northwest Suez Canal.

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