Chinese companies are preparing to invest approximately $2.4 billion in Egypt, focusing on developing a large-scale logistics and commercial zone alongside a new container terminal at Ain Sokhna Port.

The logistics and commercial zone, backed by about $2 billion in funding, is expected to span 3 million square meters, comparable in size to the Chinese city of Yiwu. This positions it as a major regional trade hub. Separately, the container terminal at Ain Sokhna Port will be developed with an initial investment of $400 million and is designed to handle up to 2 million containers.

According to a statement from the Egyptian Cabinet Presidency, the projects will be executed by Jiangsu Provincial Port Group Co., Ltd. and Shanghai Huanshi Logistics Co., Ltd.

The planned investments come as activity accelerates in the Suez Canal Economic Zone (SCZONE), which in December announced three additional industrial projects worth a combined $1.15 billion. Total investments in the zone reached $5.1 billion during the first half of the 2025/26 fiscal year.

During a recent meeting, Egypt’s Deputy Prime Minister for Economic Affairs reaffirmed the government’s commitment to expanding economic cooperation with China, describing Beijing as a strategic partner. Walid Gamal El-Din, chairman of the General Authority for the SCZONE, said Chinese firms are among the most prominent investors in the zone and that authorities are ready to facilitate new projects.

Cabinet spokesperson Mohamed El-Homsani said discussions also covered additional Chinese investments planned across the SCZONE, the New Administrative Capital, and other industrial zones.

Among the proposals is a plan by China’s Hurricane Group to establish a 100,000-square-meter industrial complex with production lines for chemicals, fast-moving consumer goods, and household appliances, along with regional storage facilities and smart logistics systems. The project is expected to support the development of an integrated supply chain network serving Egypt and markets in Africa, the Middle East, and Europe. About 70% of output would be allocated to exports, with the remaining 30% to the domestic market.

El-Homsani added that Chinese companies are also exploring the establishment of a customs warehouse to facilitate the re-export of used machinery to African markets.

The Chinese delegation also discussed strengthening cooperation between the Chinese Chamber of Commerce and Egyptian authorities to attract additional investment in priority sectors. Representatives said more than 160 Chinese companies are already operating across various industries in Egypt and are prepared to expand their presence.

China’s growing footprint in the SCZONE aligns with its broader Belt and Road Initiative, under which state-linked enterprises are investing in strategic trade corridors worldwide.