China offers to build $2bn trade city in Egypt

Chinese investors are offering to build an international logistics and trade city in Egypt at a cost of about $2 billion.

The project in the Eastern Suez economic zone is similar to China’s Yiwu international trade city, known as Yiwu Market, the world’s largest wholesale market for small commodities, according to a statement on Egypt’s cabinet website.

Chinese companies presented details of the project to Hussein Eissa, Egypt’s deputy prime minister for economic affairs, in Cairo on Monday, the statement said.

Other projects presented during the meeting include a $400 million container terminal at Ain Sokhna south of Suez Canal, cabinet spokesman Mohamed El-Homsani said.

“The projects presented by the Chinese companies during the meeting include mainly the establishment of a logistics and commercial city on an area of ​​three million square metres, similar to the Chinese Yiwu city, with investments of around $2 billion,” he said.

He said that this project would include showrooms for various Chinese products across different sectors, along with a five-star hotel, an international school and a hospital, adding that the project is expected to create nearly 150,000 jobs.

The container terminal project will be undertaken by Jiangsu Provincial Port Group and Shanghai Huanshi Express Logistics company, El-Homsani said.

Other projects include the construction of a 100,000 sq m industrial zone in Suez by China’s Hurricane Group, he said.

This zone will include production lines for chemical products, fast-moving consumer goods and household appliances, as well as regional storage centres and smart logistics systems.

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Chinese companies are among the largest foreign investors in Egypt, mainly in chemicals, textiles, energy and light industrial products.

Minister of investment and foreign trade Hassan El-Khatib said in November that Chinese investments in Egypt have exceeded $8 billion and that Cairo was introducing new incentives for Chinese companies.

He said China is also one of Egypt’s largest commercial partners, with two-way trade exceeding $16 billion in 2024.

“More than 2,800 Chinese companies also operate in Egypt with total investments exceeding $8 billion,” El-Khatib said.