China Fortune to help build new city in Egypt

[Photo/IC]

China Fortune Land Development Co Ltd, an industrial zone developer and operator, has secured its first project in Africa to build a new industrial city in Egypt's new administrative capital.

Under the government plan, Egypt's new administrative capital will be located between Cairo and Suez, a city along the Suez Canal. Once completed, the new administrative capital will serve as the country's new political and financial center and will effectively drive the development of the Suez Canal Economic Belt and the Red Sea Economic Belt.

CFLD on Monday released a statement saying it had signed an MOU with the Egyptian government earlier this month. The Shanghai-listed company will invest in and build the second phase including administrative buildings, manufacturing facilities and service infrastructure. It will cover a land space of 60 square kilometers in Egypt's new administrative capital.

Foreign media reported that CFLD's total investment in this project is estimated at $20 billion.

The total investment in Egypt's new administrative capital could reach $45 billion.

CFLD will integrate urban planning, construction and the operation to build this city with a high degree of industrial agglomeration and urban functionality, all within a sustainable ecological environment, said the company.

The Egyptian government hopes its GDP growth rate, urbanization progress and foreign direct investment net inflow can be lifted by 2 percent, 10 percent and more than 15 percent respectively, thanks to this massive project.

"Egypt is the place where the Arab League is headquartered. This strategic position makes Egypt a key node under the Belt and Road Initiative," said Zhao Hongjing, president of CFLD International Co Ltd.

Egypt is an important gateway for African and Middle Eastern countries. China has become Egypt's largest trade partner, with a trade volume amounting to $12.9 billion in 2015 alone.

"The establishment of this new industrial city in Egypt is an important step in the global deployment of CFLD's new industrial cities. It has great significance in deepening China-Egypt industrial capacity cooperation and promoting regional economic development," Zhao said.

Established in 1998, CFLD has more than 5,000 employees. It has built strong market presence in Southeast Asia, the United States, Europe and domestic markets.

Zhou Zhenbang, vice-secretary-general of the China Association of Development Zones, which represents 131 national-level economic development zones, said Chinese companies have rich experience with the development of special economic zones and agricultural reform, and Africa is doing well to emulate that.