Establishing a Project in the Suez Canal Economic Zone (SCZone)

user Youssry Saleh & Partners calender 10 Jan 2024 views 358 Views
news

The Suez Canal Economic Zone (SCZone), a strategic economic hub in Egypt, offers a plethora of opportunities for businesses seeking to expand their operations and tap into the region’s dynamic growth. To establish a project in the SCZone, investors can capitalize on a range of privileges and incentives while exploring diverse industries that align with the zone’s strategic focus.

-Privileges and Incentives for SCZone Investors

The SCZone provides a compelling package of privileges and incentives to attract and retain investors, including:

  1. 100% Foreign Ownership:

Foreign investors enjoy the right to full ownership of companies established in the SCZone, fostering unfettered control over business operations.

  1. Tax Exemptions:

Companies operating in the SCZone benefit from exemptions from customs duties, income taxes, and stamp duties for the first five years, and reduced rates for subsequent years.

  1. Land Allocation:

The SCZone Authority allocates land at competitive rates, ensuring access to suitable sites for industrial, commercial, or residential projects.

  1. One-Stop Shop Services:

The SCZone Authority provides streamlined one-stop-shop services, facilitating quick and efficient company registration, licensing, and permit approvals.

  1. Infrastructure and Utilities:

The SCZone boasts world-class infrastructure, including roads, railways, ports, and power and water desalination plants, ensuring seamless operations.

-Industries with Promising Potential in the SCZone

The SCZone prioritizes several industries that align with Egypt’s economic development goals and leverage the zone’s strategic advantages, including:

  1. Manufacturing:

The SCZone offers a conducive environment for manufacturing industries, particularly those focused on pharmaceuticals, electronics, food processing, and textiles.

  1. Logistics and Supply Chain:

With its proximity to the Suez Canal and well-developed transportation networks, the SCZone serves as a strategic hub for logistics and supply chain management.

  1. Renewable Energy:

Egypt’s abundant renewable energy potential makes the SCZone an attractive location for solar and wind energy projects.

  1. Tourism and Hospitality:

The SCZone’s proximity to iconic attractions and its potential for coastal development make it an appealing destination for tourism and hospitality investments.

  1. Information Technology and Communications:

The SCZone is fostering a vibrant IT and communications sector, catering to the growing demand for digital solutions.

-Process for Establishing a Project in the SCZone

  1. Establish a company in the SCZone:

 The companies wishing to establish a project must prepare a feasibility study for the project that includes all the financial and technical aspects to be submitted to the SCZone to obtain approval to establish a project within SCZone. After obtaining approval and establishing the company, we move to the next step.

  1. Obtaining Licenses and Permits:

Secure the required licenses and permits for your specific project activities from the relevant SCZone authorities.

  1. Land Allocation:

Apply for land allocation through the SCZone Authority, specifying your project’s land requirements and purpose of use.

  1. Project Implementation:

Commence project implementation, adhering to SCZone regulations and environmental standards.

  1. Operational Commencement:

Upon completion of project construction and obtaining necessary approvals, initiate operations within the SCZone.

The Suez Canal Economic Zone presents a compelling destination for businesses seeking to expand their operations and capitalize on Egypt’s promising economic growth. With its investor-friendly environment, diverse industry potential, and streamlined project establishment process, the SCZone offers a gateway to sustainable success in the region.