Egypt urges greater Indian investments in the Suez Canal Economic Zone (SCZone) for industrial zones, green energy, and AI. Explore bilateral trade growth, incentives, and challenges amid Red Sea tensions.
In a bold push to strengthen economic ties, Egypt is seeking greater Indian investment in the Suez Canal Economic Zone (SCZone), aiming to establish a dedicated Indian industrial zone alongside those of China and Russia.
This initiative highlights the expanding India-Egypt strategic partnership beyond traditional sectors into high-growth areas like renewable energy, AI, and digitalization.
Pleased to receive Foreign Minister of Egypt, Dr. Badr Abdelatty. Conveyed deep appreciation for my friend, President Sisi for his crucial role in the Gaza Peace Agreement.
— Narendra Modi (@narendramodi) October 17, 2025
India-Egypt Strategic Partnership continues to grow from strength to strength for the benefit of our… pic.twitter.com/aQQEMfxeRV
Egypt’s Appeal for Indian Industrial Zone in Suez Canal Economic Zone
Egyptian Foreign Minister Badr Abdelatty, during his inaugural official visit to India, emphasized facilitations for Indian firms. Speaking at the India-Egypt Strategic Dialogue in New Delhi, he stated: “We have a special industrial zone for China in this region, and for Russia. We are also encouraging an Indian industrial zone alongside the Suez Canal Economic Zone, providing all kinds of facilitations and incentives to Indian companies.”
The Suez Canal Economic Zone serves as a prime gateway for global trade, leveraging its strategic position along the vital maritime corridor.
Egypt’s vision positions SCZone as a magnet for investors, offering tax breaks, streamlined regulations, and logistics advantages to capitalize on the canal’s role in 12% of world trade.
Must Read: Trump’s Bold Push for Free US Ship Passage Through Panama and Suez Canals Faces Hurdles
High-Level Diplomatic Engagements Boost Bilateral Ties
Abdelatty’s meetings with Indian External Affairs Minister S. Jaishankar and Prime Minister Narendra Modi underscored mutual optimism. Modi praised Egypt’s role in the Gaza Peace Agreement and advocated expanding cooperation in trade, technology, energy, and defense.
Current India-Egypt bilateral trade totals $5.2 billion, with Indian exports at $3.84 billion and imports from Egypt at $1.3 billion. India is Egypt’s sixth-largest trading partner, supported by 55 Indian companies investing over $4 billion, employing 38,000 Egyptians, and $700-800 million in pipeline projects. Both nations target doubling trade by 2028.
Opportunities Beyond Traditional Sectors: Green Energy and Tech
Egypt President Abdel Fattah El-Sisi invites Indian firms to venture into digitalization, artificial intelligence (AI), and renewable energy.
The renewable sector shines with Indian companies ReNew and OCIOR securing $12 billion deals for green hydrogen and green ammonia production.
Abdelatty highlighted: “Indian companies are keen on green ammonia and hydrogen investments, as Europe—proximate to Egypt—aims for 10 million tonnes annual imports.”
These projects align with global sustainability goals, positioning SCZone as a hub for clean energy exports to Europe via the Mediterranean.
Must Read: The Strait of Hormuz: The World’s Most Critical Oil Chokepoint and Iran’s Threats Explained
Challenges Facing Suez Canal Amid Regional Tensions
Despite opportunities, the Suez Canal grapples with Houthi attacks on Red Sea shipping, causing over $9 billion in losses for Egypt.
Daily vessel traffic plummeted from 75 to 50 ships—a 60% drop—disrupting global supply chains. Egypt is bolstering security to safeguard the canal’s pivotal status.
Why Indian Investors Should Target Suez Canal Economic Zone (SCZone)
- Strategic Location: Direct access to Europe, Asia, and Africa markets.
- Government Incentives: Tax exemptions, customs facilitations, and one-stop services.
- Diversified Sectors: From chemicals and pharmaceuticals to AI, renewables, and logistics.
- Proven Success: Existing zones for China and Russia demonstrate viability.
This India-Egypt partnership expansion reflects Egypt’s diversification strategy and India’s outreach to Africa and the Middle East. With robust diplomacy and aligned priorities in tech and clean energy, Indian investments in Suez Canal Economic Zone promise mutual prosperity.