Orascom Construction PLC announced that the Suez Industrial Development Company (SIDC), a majority-owned subsidiary, signed an agreement with al-Ahly Capital Holding (ACH), the investment arm of the National Bank of Egypt, to jointly develop a 2.2 million square meter industrial park in Abu Rawash in al-Giza, Egypt.
Orascom issued a press release, a copy of which was obtained by Asharq Al-Awsat, announcing the industrial park.
It explained that it is strategically located at the crossroads of primary transportation links connecting Greater Cairo to Alexandria and other governorates, potentially becoming a leading hub for a wide range of sectors, including logistics, light industries, and SMEs.
SIDC will be the lead developer of the industrial park, leveraging its expertise as Egypt's first private industrial developer of a 10 million square meter industrial zone in Sokhna to provide a fully integrated offering. SIDC will also own 25 percent of the project company.
CEO of Orascom Construction Osama Bishai said the project paves the way for a successful partnership between two leading public and private sector entities to increase new industrial investments in Egypt.
"We are pleased to partner with al-Ahly Capital on this important project and look forward to deepening our role in developing Egypt's infrastructure and industrial sectors," he said.
Bishai indicated that the joint development of this industrial park follows SIDC's growth trajectory and fits within Orascom Construction's strategy to pursue investments that provide long-term recurring income alongside associated construction opportunities.
Commenting on the agreement, Chairman of the National Bank of Egypt Hisham Okasha explained that the industrial park development project is in line with the strategy of ACH and NBE Group to directly contribute to industrial localization.
He emphasized the importance of the project in tackling the challenge of the scarcity of adequately equipped industrial lands and the provision of industrial and logistical services.
SIDC CEO Amr Batrik noted that aligning with Egypt's vision to increase and attract new industrial investments rather than importation is essential.
"We believe that developing the new industrial park will promote new growth opportunities, and we are proud to be armed with our success in SIDC Sokhna, pointing toward increasing the portfolio of industrial development in the Orascom Construction group."
ACH CEO Karim Saada stated that the project team from the ACH and SIDC effectively capitalized on developments in neighboring areas and the construction of the Rod el-Farag axis, leveraging its unique accessibility to launch a first of its kind industrial and logistical park in the heart of West Cairo.
He expects the project to have a tremendous impact on the surrounding areas regarding job creation, attracting local and foreign industrial investments, and generating opportunities for SMEs to flourish with tailored plug-and-play solutions.