Egypt proposes U.S. industrial zone in Suez Canal to boost investment

Egypt has unveiled a proposal to establish a dedicated U.S. industrial zone in the Suez Canal region as part of broader efforts to attract more American investment, according to The National.

The announcement came during the two-day US-Egypt Policy Leaders Forum held in Cairo, which brought together top business leaders from both nations, including executives from IBM, General Motors, and Kraft Heinz.

“Egypt’s strategic location, diversified economy, and commitment to digital transformation make it an ideal partner for U.S. investment,” said Suzanne Clark, president and CEO of the U.S. Chamber of Commerce.

Leading Egypt’s delegation, Prime Minister Mostafa Madbouly announced new incentives to support U.S. trade, including reduced fees for halal certification of American meat products and relaxed import restrictions on U.S.-made vehicles.

U.S. officials welcomed the reforms.

“The government has taken bold steps to remove long-standing, non-tariff barriers to American exports,” said U.S. Ambassador to Egypt Herro Mustafa Garg. “This is a significant win for both countries, their companies, and their citizens.”

Economic recovery remains a key priority for Egypt. Over 1,800 U.S. companies reportedly currently operate in the country, with cumulative investments surpassing $47 billion. Bilateral trade between the U.S. and Egypt reached $8.6 billion in 2024, positioning Egypt as America’s fifth-largest trading partner in the region.