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The head of Egypt’s Suez Canal Authority Mohab Mamish has signed a contract with UAE-based DP World to set up a new a joint venture company that will develop the planned economic zone near the Suez Canal, Al-Ahram daily reports.
The partnership was first announced in August following talks between Egyptian President Abdel-Fattah El-Sisi, chairman and CEO of DP World Sultan Ahmed Bin Sulayen and Mamish.
The Suez Canal project includes the construction of a 46 square-kilometre economic zone around the canal that the government says will be developed as an international industrial and logistics hub that will attract ships and generate foreign investment.
President El-Sisi issued a decree establishing the zone in August 2015.
Under the partnership, which will be signed in the UAE, DP World will carry out the development of 92,000 sqm in Ein Sokhna in Suez, at the southern end of the Suez Canal, Mamish was quoted by Ahram as saying
The new company will be 51 percent owned by the General Authority of the Suez Canal Economic Zone, which was founded in 2015 to administer and manage the development project, and 49 percent will be owned by DP World.
The Suez Canal is the fastest shipping route between Europe and Asia. It is one of Egypt’s key sources of hard currency, bringing in about US $5 billion a year.