Prime Minister Mostafa Madbouly on Saturday inaugurated a wide range of development and industrial projects in the Qantara West Industrial Zone, part of the Suez Canal Economic Zone (SCZONE). The ceremony marked another milestone in Egypt’s ongoing efforts to attract foreign investment, strengthen local industry, and build modern infrastructure capable of supporting the country’s economic growth objectives.
Located in Abu Khalifa, the Qantara West Industrial Zone covers an area of 19 square kilometres. Its strategic position connecting the Mediterranean and Red Sea ports makes it a vital hub for labour-intensive industries and logistics. With its integrated infrastructure and proximity to major trade routes, the zone has been designed to serve as a gateway for regional and international investment.
The zone’s first phase, covering 4 km², was completed in July 2024. It was fully equipped with the infrastructure needed to host a wide range of industrial projects. Facilities include an extensive road network, utility stations, a 20 MW power transformer with a 500 MW station under construction, advanced water treatment and sewage plants, gas pressure reduction facilities, and potable water stations. All were built to international standards with the aim of attracting large-scale investment and ensuring sustainable growth.
The investment map of Qantara West demonstrates its international appeal. To date, investments from seven countries — Egypt, China, Turkey, Germany, Greece, Pakistan, and Thailand — have been channelled into the zone, with a combined value of approximately $1.055bn. These investments span diverse sectors including textiles and apparel, luggage manufacturing, logistics centres, poultry equipment, packaging, and food industries.
Currently, the zone hosts 40 projects that together provide nearly 55,600 job opportunities. Contracted project areas cover around 2.47 million square metres, underscoring the strong investor confidence in Qantara West as an emerging industrial destination.
Newly inaugurated projects
Several projects that had reached their groundbreaking stage in the past two years were inaugurated during Madbouly’s visit. These included Hengsheng Textile Company from China, which broke ground in July 2024, and Ergolu Garment from Turkey, launched in August 2024. Both projects are now operational.
Other projects in the pipeline include Eroglu Egypt (Turkey), Henneway (China) for luggage manufacturing, De Sita (China) for ready-made garments, and High Tech (Thailand) for apparel. These projects, scheduled to open in phases through 2026, reflect the zone’s role in supporting Egypt’s strategy for localising industry and promoting exports.
One of the highlights of the inauguration ceremony was the official opening of the Chinese-owned Hengsheng Textile factory. With investments exceeding $70m, the project covers an area of 200,000 square metres and specialises in textile printing, dyeing, and processing. The first 100,000 sqm phase has been completed, while construction of the second phase is already underway. Once finished, the factory will provide approximately 1,300 direct jobs for Egyptian workers.
Chen Song Fu, Chairperson of Hengsheng, said the company is committed to using advanced and environmentally friendly technology to produce high-quality textiles that will enhance Egypt’s manufacturing output. “With the support of the Egyptian government and our management’s expertise, we are confident in delivering world-class products that contribute to achieving the ambitions of Egypt’s Vision 2030,” Chen stated.
Nurettin Eroglu, Chairman of Turkey’s Eroglu Holding, highlighted the company’s longstanding presence in Egypt. He noted that Eroglu first invested in Ismailia in 2007, followed by Damietta in 2011, and is now returning with new projects in Qantara West. Over the years, the group’s investments in Egypt have grown from $150m to $450m, while its workforce expanded from 2,500 to 10,000 employees. Sales have also risen significantly, from $150m to $350m.
Natural gas infrastructure
In addition to industrial projects, Madbouly inaugurated new infrastructure facilities crucial to the zone’s development. Wael Gowayed, Chairperson and CEO of Egypt Gas, presented details of the natural gas pressure reduction station built under the SCZONE.
Occupying an area of 1,616 square metres and costing EGP 250m, the station has a design capacity of 40,000 cubic metres per hour. It includes a pressure reduction unit, an administrative building, an electrical room, a fire tank, and security rooms. Gowayed added that a second, larger station with a design capacity of 160,000 cubic metres per hour is planned to meet future expansion needs, in line with SCZONE’s strategy of equipping all its zones with comprehensive infrastructure of the highest standards.
Water treatment and raw water intake
Another key component of the day’s inaugurations was the launch of the water treatment plant and raw water intake facility. Walid Gamal El-Din, Chairman of SCZONE, emphasised that these facilities represent a cornerstone of the zone’s infrastructure, enabling it to serve the 40 industrial projects already contracted.
The water treatment plant includes a purification unit with a capacity of 200 litres per second, settling tanks, clarifiers, drying basins, a chlorine dosing building, and a sludge pumping area. Additional structures include transformer buildings, treated water pumping stations, storage tanks, and raw water pumping facilities.
The first phase of the water treatment plant was built with a design capacity of 35,000 cubic metres per day, while the raw water intake was completed with the same capacity, at a combined cost exceeding EGP 475.8m. Plans for expansion are already underway: the second phase of the plant will increase capacity to 70,000 cubic metres per day on a site of 22,500 square metres, at an estimated cost of EGP 905m. The raw water intake will also be expanded to reach 70,000 cubic metres per day.
“These facilities were designed with scalability in mind, allowing their capacity to double in the future to meet the needs of additional industrial projects,” Gamal El-Din explained. “This positions Qantara West as a promising regional hub for manufacturing and investment.”
Strengthening competitiveness
During his tour of the Hengsheng Textile factory, Prime Minister Madbouly observed production lines and machinery, including combing, nap cutting, heat setting, dyeing, and fabric finishing processes. He also spoke with several workers, inquiring about their roles, salaries, and benefits. Employees confirmed that the factory management had provided a supportive environment with necessary services, improving their overall working conditions.
Walid Gamal El-Din noted that Hengsheng’s investment illustrates SCZONE’s success in attracting major global players in strategic industries such as textiles. “This project deepens local value chains, supports domestic supply networks, and enhances the competitiveness of the national industry,” he said.
He added that the swift execution of Hengsheng’s project — from signing the contract in October 2023, to groundbreaking in July 2024, and inauguration in September 2025 — highlights SCZONE’s ability to fast-track large-scale industrial investments.
The combination of industrial projects and infrastructure inaugurations underscores the government’s commitment to transforming Qantara West into a fully integrated industrial zone. With strong participation from foreign investors, comprehensive infrastructure facilities, and thousands of jobs being created, the zone reflects Egypt’s broader strategy to localise industries, strengthen exports, and position itself as a competitive regional hub.
Prime Minister Madbouly affirmed that the government remains determined to support investors, facilitate projects, and continue building the foundations for sustainable growth. The Qantara West Industrial Zone, he noted, represents both the achievements already made and the future potential of Egypt’s industrial development drive.
