Sino-Egypt collaboration fosters industrial growth – World

Along Egypt”s Red Sea coast, a landscape once little more than barren desert has been transformed into a growing industrial hub.

Factories produce optical fiber, ductile iron pipes, tires, photovoltaic modules and battery-storage systems, and thousands of Egyptians work in increasingly skilled positions. At the center of this transformation is the China-Egypt TEDA Suez Economic and Trade Cooperation Zone, one of the most prominent examples of China-Egypt economic collaboration.

Cao Hui, executive director of Egypt-TEDA Special Economic Zone Development Co, said the zone’s story goes beyond the factories, investment figures and infrastructure. It reflects a broader shift in collaboration between China and Egypt, from building infrastructure to developing industrial capacity, transferring technology and, increasingly, nurturing local talent, he said.

Cao described the transformation as a shift “from transfusing blood to creating blood”, with Chinese companies now building factories, supply chains and local skills in Egypt.

When the TEDA cooperation zone began construction in 2008, a four-person team comprising three Chinese and one Egyptian faced the daunting task of developing the desert site under extreme conditions, where temperatures can reach 50 C, and tight deadlines.

Nearly two decades later, the barren landscape has been transformed into a thriving industrial hub along the Red Sea. Today the zone has a developed area of more than 10 square kilometers, hosts more than 200 companies, has attracted more than $4.7 billion in cumulative investment and recorded sales of more than $7.3 billion.

Enhanced capabilities

Senior Egyptian officials have acknowledged the tangible socioeconomic transformation brought by the joint development model. Egyptian Prime Minister Mostafa Madbouly toured the site in August 2025, and described it as a successful model of bilateral investment.

By June this year, the zone had contributed $350 million in cumulative tax payments to Egypt’s public finances. However, the most revealing measure of its impact is what Egypt is capable of making locally.

Cao said that TEDA is increasingly helping the country build manufacturing capabilities in areas it once relied heavily on imports.

“TEDA cooperation zone companies are plugging critical supply-chain gaps across multiple industries — from new energy and advanced equipment to electronics, automotive components, building materials and chemicals,” Cao said. “The park’s companies are not only helping Egypt buy less, but also are helping Egypt sell more. This is a truly deep contribution to Egypt’s economy.”

According to the zone, concrete on-the-ground projects illustrate supply-chain achievements.

Jushi Egypt, Africa’s largest fiberglass production base, operates four production lines with a combined annual capacity of 360,000 metric tons, backed by a total investment of about $1 billion.

Over 95 percent of its goods sail through the Suez Canal to Europe and the Americas, generating roughly $100 million in annual export revenue for Egypt, while more than 1,900 Egyptians work at the site, which boasts a 98 percent local employee ratio.

With an annual capacity of 250,000 tons, Xinxing Ductile Iron Pipes supplies Egypt’s water pipeline network as well as markets across the Middle East, Africa and Europe and employs local workers whose incomes have nearly doubled since joining the factory.

According to Cao, the shift is significant. Egypt is developing into not only an investment destination, but also a production base from which companies can reach three major regional markets, Cao added.

The zone provides manufacturers direct access to international shipping routes. The new investments are increasingly positioning Egypt as a manufacturing and export base serving markets in Africa, the Middle East and Europe, Cao said.

Alongside the massive industrialization, talent development has become a central part of TEDA’s approach. Companies in the zone have created more than 10,000 direct jobs and tens of thousands of indirect employment opportunities.

While more than 90 percent of employees in the zone are local, TEDA aims not simply to employ Egyptians, but also to equip them with the skills and experience to move into higher-value positions.

Today more Egyptian workers can be found in smart manufacturing, quality control, equipment maintenance, logistics, finance, legal services and management. “Talent development is where we make our most determined investment,” said Cao, describing it as an undertaking that requires a long-term commitment but delivers lasting value.

Nahla Mahmoud Emad, CEO of Egypt-TEDA Special Economic Zone Development Co, reflected on the zone’s broader societal impact. “In Egypt’s market, and even within Egyptian local culture, public understanding of what an industrial park can achieve has been transformed by everything taking shape here.”

These changes extend beyond factory gates into community expectations for locally-led industrial growth.

TEDA has partnered with Egypt’s Luban Workshop, an international program China initiated to promote vocational education and establish an employment training base, which has hosted Egyptian employees who have traveled to China for professional training. Cao said among those who have undergone training in China, some have risen through the ranks to hold senior positions at the Egypt TEDA Investment Co and Egypt-TEDA Special Economic Zone Development Co.

At the same time, a China-supported vocational training center for the Suez Canal Economic Zone has been earmarked for the TEDA zone’s expansion area. The facility is expected to provide critical courses in fields that include mechanical engineering, electrical power, renewable energy, automotive assembly and maintenance, industrial robotics, electronic-product design and maintenance, and communications and network technology.

Key lessons

Cao added that the TEDA zone’s next chapter will be shaped by the global shift toward greener and smarter industry as the zone prioritizes low-carbon and environmentally friendly businesses.

The zone is also adopting digital customs and logistics services and developing cross-border renminbi settlement mechanisms aimed at making trade and investment easier for companies operating in Egypt.

The TEDA zone’s experience can provide lessons for other African countries seeking to attract manufacturing investment and accelerate industrialization, Cao said.

Chief among these lessons is that the success of industrial parks cannot rest on simply putting up factories and offering investment incentives. “They must adapt to local conditions, respond to local industrial and employment needs, develop local skills and connect investors with domestic supply chains,” Cao added.

Wu Xiaohui contributed to this story.

Contact the writers at yandongjie@chinadaily.com.cn