Download Suez Canal Area Development Project (SCADP) Objectives

1. Commodities:
a. The balance of trade in commodities witnesses a deficit that
is increasing dramatically since 2005 as it has mounted from
11.9 billion US$ in 2005 to be 31.8 billion US$ by the end of
2013.
b. This huge deficit is due the increase in exports from 18 billion
US$ in 2005 to be 25.9 billion US$ in 2013.
c. In 2005, the Egyptian petroleum exports were representing
56% from the overall exports, whereas in 2013 it has
decreased to be 46%.
d. The decrease in the petroleum exports is a positive sign that
we have started to depend on non-oil exports having more
added value.
2. Services:
 Egypt’s balance of services in 2005 has achieved a surplus of
7.8 billion US$, and a surplus of 6.6 US$ by the end of 2013.
 By reviewing Egypt's balance of payment figures throughout
the past 10 years, one can easily note that Suez Canal is one
of the main pillars in service sector.
 The Suez Canal’s income has decreased from (7.8 %) in 2005
& (6%) in 2013.
 From 2005 to 2013, the income of Suez Canal has increased
by an average of 17%.
 It is well noted, that this income has witnessed a stagnation in
growth since 2008.
 Therefore, adopting new concepts in developing its positive
and rapid impact on the national economy by increasing the
hard currency revenues, is what is being announced
nowadays. (The new Suez canal - The SCADP)
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Business Support Organizations’ Role
A) Advocacy to remove "excess" government controls and promoting
market competition based economy
B) Focus on receiving delegations mainly interested either to invest or
import from Egypt
C) Work through its specialized committees to improve and establish
value - based industries
D) Encouraging the growth of new service sector industries
E) Optimum use of each organization network of stake holders around
the globe and try to encourage, know how transfer / FDI , as well as
establishing modernized training centers in sectors of concern, as
well as encouraging mutual R & D .
F) Enhancing BSO's performance to better serve business community
by regularly upgrading services adopting new techniques,
automation and HR development.
G) Studying the trade structure of our partners to find out the most
convenient way for markets penetration especially in new markets
H) Capitalize and strengthening relations with countries where we
enjoy a surplus in the trade balance
I) Study problems using our sectorial committees to propose solutions.
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Egypt in figures
Country Flag
Official Languages
Foreign languages
Arabic
English and French widely
understood by educated classes
Cairo
Cairo, Alexandria, Giza, Port
Said, Suez, Hurgada, Luxor,
Sharm El Sheikh
Capital City
Main Cities
Form of Government
Head of State
Road Network:
Railway Network:
Coastline
President:
ABD EL FATTAH AL SISI
Prime Minister Eng. Ibrahim
Mehlb
87,363,195 (Oct 2014)
2.5% (2008-2013)
0-14
years:
40.5%
15-44
years:
44.4%
45-59
years:
10.7%
60 years and over: 4.4%
27.6 Million (Q2 2014) ,
27.623 Million (2013). 27
Million (2012) , 26.8 Million
(2011)
41 Universities (23 Public, and
18 Private)
Alexandria, Damietta, El
Dekheila, Port Said, Suez, ElSukhnah
108,784 Kilometers
9,570 Kilometers
2,450 km
Internet Users
44.51 Million (May 2014)
Mobile Users
101.93 Million (May 2014)
Head of government
Population:
Population average Growth Rate
Age Structure:
Labor Force
Universities
Main Sea Ports and Terminals
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Egypt has adopted:
 a new constitution,
 a democratic system that applies the rule of law,
 The separation of powers and stresses on the independence of court
system.
 We have a new elected president with a vision and large popularity
that allows him to take difficult decisions to reform economy.
And a new economic policy that aims at:
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Restructuring the budget
Boosting exports to reduce current account deficit.
Increase the inflow of investment to decrease the growth deficit.
Replacing fuel subsidies by spending on health , education, housing
and transportation
 Increasing public revenues by introducing new and fair taxations
 Decreasing the subsidies on oil products
 Promoting exports of both goods and services using our trade
agreements with the Arab world, Africa, Europe and Turkey.
TOURISM
The Egyptian government has an ambitious plan to increase the number of
tourists to twenty millions in three to five years.
MEGA PROJECTS
As well as, creating new job opportunities specially that Egypt is currently
undergoing new mega projects namely:
1. SUEZ CANAL PROJECT
a. Deepening of Suez canal, digging of a parallel canal
in both directions with the purpose of increasing the
capacity of the canal and decreasing the passage time
as well as its positive impact on revenues Suez Canal
b. Development of Suez Canal area SCADP, as it is
considered as a cross road between three continents.
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Information on Suez canal:
 The Suez Canal is considered as a world hub for trade linking the
Mediterranean Sea to the red sea directly. The borne trade in 2012
has reached 7.8% of the world trade.
 Therefore, adopting new concepts in developing its impact on the
national economy is what is being announced nowadays.
Project one description:
 This giant project will be the creation of a new Suez Canal parallel
to the current channel with a total length of 72 kilometers.
 The project would include 35 kilometers of expansion and
deepening.
Aims:
 Is to speed up traffic along the existing waterway and boost the
country’s economy.
 Increase national income of hard currency.
 Increase rate of transits and minimize transit time
 Increase canal’s capacity
 Increase canal’s competitiveness against other international
alternative water routes.
 Boost Egyptian morale
 Increase the Suez Canal revenues by 259% by 2023 to become
13.226 billion US$ compared to current revenues of 5.1 billion US$.
 Increase the canal’s capacity to be 97 vessels in 2023 against 49
vessels in 2014.
 Less transit time
Suez Canal Area Development Project (SCADP)
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Objectives:
Developing and boosting Egypt’s national economy by making use
of the unique location of Suez canal
Creating new industrial and logistic centers that depend on added
value and complimentary industries.
Economic boom and job creation
Increase the ship traffic
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2. Golden Triangle: development of south east Egypt between the Nile
valley and the red sea which is an area rich in minerals .
 Upper Egypt’s natural resources will be tapped into to develop
the region through the Golden Triangle Project, the second
largest developmental project run by the Egyptian
government.
 The project seeks to establish a new industrial capital city
through constructing a global, touristic, mining, economic,
commercial, and industrial center. It will also create a logistic
and economic center northwest of Safaga, which will operate
mining activities to make use of the Eastern Desert’s Golden
Triangle. This area extends from Edfu, south of Qena, in the
Nile Valley to Marsa Alam on the Red Sea coast and Safaga
in the north.
 The project will sit on an area of 6,000 square km and will
develop Upper Egypt through constructing an industrial,
agricultural, touristic, and commercial zone. The proposed
time frame for project construction is two years.
 A separate entity will implement the project under the
umbrella of the cabinet, to build the project as quickly as
possible, and at the highest level of efficiency.
 The proposed projects for the Golden Triangle developmental
project include mining projects, such as using phosphate ore
and constructing fertilizer factories. Other projects will utilize
raw materials to manufacture cement from clay and limestone
and produce gasoline from oil-based clay.
 The project also entails tapping into agricultural lands in Qena
governorate and constructing a number of touristic resorts in
Dendara, Laqeta, and Qena Valley. It will also develop resorts
and tourist villages between the Safaga and Al-Quseir areas.
 New urban communities like New Qena will be built,
alongside a number of new cities on the Qaft-Al Quseir Road
floodplain, with Safaga and Al-Quseir further developed.
Industrial projects set for implementation will develop the
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industrial zones in the governorates of Qena, Sohag, and Red
Sea as well.
 The Safaga-Qena railway extends 223 km in length, with
150km to be reconstructed. The plan is to run six trains per
day on the railway line.
 One train has 35 train carriages, each containing 65 tonnes of
cargo, while the transport capacity for one line is 7,000 tonnes
per day. It can be used to transport materials from production
areas in the valley to manufacturing areas, or to transport coal
from ports to manufacturing zones.
 For marine ports, several platforms will be built in Safaga Port
for containers, public goods, or dry molding, 5km alongside
the coast, with a total capacity of 30m tones.
 Studies are also being conducted to develop Abu-Tartor
Mining Port to raise its capacity from 2.5m tones of dry
molding to 6.5m, 2m tones of phosphoric acid. The
developments will also see the port’s capacity rise to 1m tones
of sulphuric acid, and 3m tones of public goods. It will cost
an estimated $135m over three years, allocated to complete
bidding procedures and implementation.
 A total of 300,000 direct job opportunities will be provided
during the 20 years of construction the project in the industrial
sectors, in addition to 180,000 indirect opportunities, with a
total of 480,000 job opportunities as a result of Golden
Triangle Project.
3. Egypt’s million square kilometers
Consist mainly of desert, split into two halves by the River Nile,
compelling Egyptians to cluster around their only stable source of drinking
and irrigation water. Around 95 percent of the 62 million Egyptians occupy
no more than 5 percent of the country’s total area along the Nile Valley.
Accordingly, economic activities, whether industrial, agricultural or
service-related, are targeted towards the major metropolitan cities along
the Delta with negligible value added generated by the desert governorates.
The dynamics of the situation are even more unbalanced with arable-land7
per-capita figures showing a marked decline and the mismatching of
annual growth in the labor force with job-generation capacity leading to a
crisis in the form of declining marginal productivity.
The Egyptian policy to mitigate the crisis has evolved through three
overlapping phases. The first phase started in the early 1950s with largescale land-reclamation projects in areas adjacent to the Delta, successfully
achieving its target by increasing the land area from 5 million feddans in
1952 to 8 million feddans in 1998. By the second half of the 1970s, a new
strategy based on establishing new industrial cities in remote desert regions
began to relocate heavy industries, supported by infrastructure designed
specially for that purpose. By 1998, the Egyptian government had
established 19 new cities and it is expected to increase the number to 41
cities by 2017. Finally, since the early 1990s, based on the relatively
disproportionate population-relocation effects of the above-mentioned
policies, the governemt has been creating integrated community centers in
the desert equipped with an elaborate infrastructure and utilities network
to enable it to sustain massive relocation. To attain this objective, four
mega projects are scheduled to be operational by 2002, adding no less than
an additional 20 percent to the habitable land in Egypt.
These four mega projects are planned to capitalize on Egypt’s most
precious resources, arable land and strategic location. To utilize the
cultivable land plots in the Western Desert and Sinai Peninsula, massive
land-reclamation schemes will lay the corner stone for resettlement,
agricultural production and exports. To exploit the unique location of the
Suez Canal navigation route, an international hub port capable of attracting
international container traffic will be established in the East Port Said
region to complement the currently existing Port Said, Damietta and
Alexandria ports. Finally, situated only 100 kilometers from Cairo in the
northern region of the Gulf of Suez, a giant industrial zone is planned to
host high-tech industrial complexes with low-cost access to both inputs and
consumption markets.
A major divergence from prior policies is the private sector’s dominant role
in the new mega projects. Although the government contribution in the
early stages of these projects is significant, the long-term value added
activities will be 75-80 percent dominated by the private sector. In this
respect, the government has set up an investor-friendly regulatory
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environment for projects located in remote regions as per Investment Law
No.8/97. In addition, the door has been opened wide for foreign investors
to invest in Egypt who positively responded either by establishing a
business presence or participating in Build, Own, Operate and Transfer
(BOOT) projects.
Integrated and sustainable development is the panacea for Egypt’s
economic woes. Partial solutions are not capable of alleviating the
economic and social pressures resulting from a growing population and
labor force in the face of declining arable land, capital and employment
opportunities. It has been Egypt’s most ambitious development plan to
invest in the 1990s structural reform successes and high macroeconomic
performance to expand its productive base to sustain past achievements and
future growth
4. Toshka project
The Toshka or New Valley Project, which aims to make Egypt selfsufficient in food, is now in the news.
The project is designed to channel water from Lake Nasser, the lake formed
by the Aswan High Dam into the Western Desert in the southwest of the
country to irrigate 1 million hectares and build new cities in the desert.
The project now aims to reclaim 108,000 feddans in the first phase, which
will eventually increase to 4 million feddans with the purpose of achieving
food self-efficiency. As of 2014, only 55,000 feddans were cultivated. The
first phase is to be finished within a year. Egypt’s population of 87 million
lives on only 5.3% of the nation’s land, in the Nile Delta and Valley. It is
hoped that 20% of the Egyptian population will live in the new lands.
Minister of Irrigation Hossam Moghazy said, “This project is not about
irrigation and agriculture; it is a developmental project to get out of the
narrow valley to the vast desert, which covers about 60% of Egypt.”
5. Developing northwest coast
This region represents the future of development in Egypt as the
northwestern coast extends to 500 kilometers and has a desert hinterland
extending to the depth of 280 kilometers. This area could absorb a huge
part of overpopulation in Egypt in the coming 40 years.
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Preparations for new projects in the north coast are ongoing, including the
establishment of a new green city of al-Alamein.
The project aims to develop the housing infrastructure and boost tourism
in the area, which has undiscovered resources.
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