How partnerships and FDIs are fuelling Egypt’s logistics engine?

Apart from pyramids and influx of tourists, Egypt stands at a pivotal inflection point in its economic and trade trajectory, driven by a surge of foreign direct investment (FDI) and bilateral partnerships that are transforming its logistics infrastructure and export capacity. A decade after comprehensive port expansions and years into structural reforms under an IMF program, Egypt is now demonstrating how targeted foreign capital and strategic international cooperation can reshape logistics networks, enhance connectivity and unlock export potential across multiple sectors.

Ports, integrated logistics parks, customs modernisation, industrial clusters and digital trade facilitation have emerged as the primary vehicles through which foreign investors are driving capacity and competitiveness. These developments reflect both investor confidence and a deliberate policy shift—moving beyond reliance on raw transit fees from the Suez Canal toward building a logistics ecosystem that embeds Egypt into global supply chains.

As of mid-2025, quarterly FDI inflows remained robust, increasing by $2.4 billion in June 2025 compared with $3.8 billion in the prior quarter, even as global economic headwinds and regional instability persist. Egypt’s leadership has emphasised attracting FDI that generates export receipts and strengthens supply chains, not simply raising headline capital flows.

Structural reform and the investment climate
Egypt’s macroeconomic backdrop in 2025 reflects significant policy adaptation. Following an economic shock in 2022–23 that saw inflation above 25%, inflation fell below 15% by April 2025. The country has completed four of eight reviews under its $8 billion Extended Fund Facility (EFF) with the IMF, with full programme completion expected by June 2026. Complementing this, the IMF approved a $1.3 billion Resilience and Sustainability Facility (RSF) to support long-term structural resilience.

As part of these programmes, Egypt adopted a flexible exchange rate, tightened monetary policy, and committed to business climate improvements, including privatisation and regulatory reform. These measures have been geared toward increasing FDI in logistics and export-oriented sectors, a strategic objective reflected in the scale and profile of foreign participation in ports, industrial zones and related services.

Nevertheless, investor surveys and official sources continue to cite areas needing further reform—bureaucracy, uneven enforcement of laws, skills shortages, customs delays, and concerns around transparency and regulatory consistency. Against this backdrop, foreign investors are nonetheless making concrete commitments in areas where policy clarity and infrastructure readiness are strongest.

Ports and trade corridors: from transit to integrated logistics hubs
The backbone of Egypt’s logistics transformation remains its ports and trade corridors, anchored by the Suez Canal, which accounts for approximately 12% of global maritime trade. However, the focus in 2025 has shifted from only transit to value-added logistics capacity that supports exports and regional distribution.

Alexandria Port: Eastern Mediterranean transit growth
In 2025, Alexandria Port reinforced its role as a critical transit hub. Handling nearly 800,000 twenty-foot equivalent units (TEUs) during the year, the port recorded a 41% year-on-year increase—a performance driven by rising transhipment volumes and enhanced feeder connectivity. This expansion reinforced Alexandria’s strategic position as a gateway linking Mediterranean, European and African trade.

Improved vessel calls, strengthened hinterland rail and road connectivity and operational reforms contributed to this growth. For global carriers and logistics providers, the port’s increasing share of Eastern Mediterranean traffic has made it a preferred node for transhipment and regional distribution.

Ain Sokhna and the Red Sea Container Terminals (RSCT)
On Egypt’s Red Sea coast, the transformation narrative reached a significant milestone with the start of trial operations at the Red Sea Container Terminals (RSCT) at Ain Sokhna Port in late 2025. The terminal, located within the Suez Canal Economic Zone (SCZONE), represents one of the most advanced container facilities in the region.

RSCT is operated by a consortium comprising Hutchison Ports, CMA CGM and COSCO Shipping—three heavyweight players in global container logistics. The first phase of the project, with 1.2 km of quay operational out of a planned 2.6 km, spans 720,000 square metres of yard space and forms part of a 1.6 million square metre facility designed to handle up to 3.5 million TEUs per year once fully completed.

The facility’s ability to accommodate ultra-large containerships of up to 400 metres in length and its adoption of remotely operated cranes position Ain Sokhna to attract deep-sea transhipment traffic and integrated logistics services. The terminal’s first vessel call, CMA CGM Helium, marked the soft opening of operations, an event attended by senior figures from the SCZONE, Hutchison Ports, CMA CGM and COSCO Shipping.

The RSCT project was developed in coordination with the Ministry of Transport and the SCZONE over an 18-month period—an indicative timeline for large-scale port infrastructure in the region.

The opening of RSCT coincided with Ain Sokhna receiving a Guinness World Records certificate recognising it as the deepest human-made port basin constructed on land at a depth of 19 metres. This certification not only underscores Egypt’s engineering ambitions but also enhances Sokhna’s competitive position among deep-water ports.

Gulf capital, logistics ecosystems and Emirati strategic investment
Foreign investment from the Gulf, particularly the United Arab Emirates (UAE), has been central to Egypt’s port and logistics expansion. The impact is both substantial in capital terms and strategic in operational integration.

DP World, the Dubai-based global port operator, has been active in Egypt since 2008, investing in terminal capacity expansion, integrated logistics and port modernisation projects. By 2025, DP World’s cumulative investments in Egypt exceeded $1.3 billion, a figure underpinned by port concessions, logistics park development, cold-chain infrastructure and value-added services.

The Sokhna Logistics Park, developed by DP World in partnership with the UK’s British International Investment (BII), represents a flagship project in 2025. With an $85 million investment being executed in two phases, the park is designed to integrate bonded and non-bonded warehousing, on-site customs inspections, real-time visibility platforms and a customer portal. Phase one is fully operational, while phase two—expected in the third quarter of 2026—will expand the facility to nearly 300,000 square metres, offering capacity for diversified logistics functions.

Strategically positioned just 15 minutes from Sokhna Port, 30 minutes from Suez and 45 minutes from the New Administrative Capital, the logistics park targets sectors that include raw materials, agriculture, packaging, automotive components, electric vehicles, textiles and construction materials. By mid-2025, the park reported around 90 prospective customers and several signed contracts, reflecting strong market demand for integrated logistics solutions.

DP World’s involvement in Egypt extends beyond just facilities. In 2025, the company commenced construction of a $29 million cold storage facility in 6th of October City, adding 16,000 square metres of modern, temperature-controlled capacity. This investment enhances Egypt’s cold-chain infrastructure—a critical enabler for food exports, pharmaceuticals and other temperature-sensitive goods—and complements Sokhna’s broader logistics ecosystem.

The logistics park benefits from SCZONE’s incentives, including tax exemptions, customs facilitation, and simplified regulatory procedures under the zone’s one-stop service framework. For DP World, the park represents a shift from traditional port operations toward end-to-end logistics solutions that encompass inventory management, customs integration, bonded services and value-added services.

According to Sultan Ahmed Bin Sulayem, Chairman and Group CEO of DP World, the company’s strategy in Egypt “goes beyond the port” by building a fully integrated logistics ecosystem that supports export competitiveness and domestic supply chain resilience.

European and global logistics operators
While Gulf capital has been instrumental in hard infrastructure, European and global logistics operators have focused increasingly on network services, supply chain optimisation and integrated freight solutions that support exporters across sectors.

DHL has expanded its footprint in Egypt through investments in express, global forwarding and contract logistics. By 2025, DHL Supply Chain had significantly increased its warehousing and distribution capacity in and around Cairo, serving as a regional distribution hub—for industries ranging from consumer goods to pharmaceuticals.

DHL’s approach has emphasised integrated services that bridge sea, air and land transport. Expansion of express services and last-mile delivery capabilities responds to growing e-commerce volumes and time-sensitive supply chains. DHL Global Forwarding’s investments in air freight capacity and customs facilitation support Egyptian exporters seeking faster access to European, Gulf and African markets.

Scan Global Logistics, a Denmark-based freight forwarder, has also deepened its presence in Egypt’s logistics market. In 2025, Scan Global expanded its head office operations in Cairo, adding capabilities in customs clearance, ocean and air freight, project cargo, and warehousing. For industrial manufacturers and commodity exporters, Scan Global’s network offers multi-modal connectivity and end-to-end supply chain visibility—critical for complex export flows.

European logistics engagement is particularly significant for Egypt’s diversification strategy. As exporters move into higher-value goods—such as automotive parts, electronics and processed goods—logistics services that support time-definite and integrated multimodal solutions become essential. European operators bring both scale and standards that help reduce transit times, improve reliability and enhance market access.

Asian partners and integrated supply chains
Asian partnerships in 2025 span both logistics infrastructure and industrial linkages. The involvement of COSCO Shipping in the RSCT consortium is emblematic of China’s interest in securing maritime nodes along key trade routes. Beyond shipping lines, Chinese industrial firms are active in free zones and manufacturing clusters across Egypt, particularly within SCZONE.

China’s Belt and Road framework continues to inform infrastructure cooperation, with Chinese executives participating in high-level dialogues on industrial development, green logistics and logistics planning. In late 2025, a delegation of Egyptian officials visited Beijing under a Memorandum of Understanding with China’s National Development and Reform Commission, focusing on economic planning, industrial strategy and logistics integration models.

Japan’s 2025 engagement in Egypt has included infrastructure cooperation—such as the $22 million dive support vessel for the Suez Canal Authority—and private sector involvement in manufacturing and logistics technology. Japanese companies have deepened their presence in the automotive and industrial sectors, indirectly supporting export flows through port and logistics usage.

South Korean investment has focused on chemicals, advanced manufacturing and engineering goods, often linked to efficient logistics and export channels. Indian companies, too, have expanded trade-linked investments, especially in technology-intensive and capital goods sectors.

Africa-centric logistics and trade linkages
Egypt’s logistics expansion is increasingly aligned with African trade dynamics. Under the African Continental Free Trade Area (AfCFTA), Egypt is positioning itself as a gateway for intra-African trade. Partnerships with countries such as Rwanda and Djibouti aim to enhance market access and logistics connectivity.

In 2024, Egypt welcomed Rwanda’s allocation of a logistics zone to support Egyptian investors—a move reiterated in 2025 as part of ongoing diplomatic and trade engagement. Such logistics zones provide Egyptian exporters with preferential access to inland African markets, reducing the cost and complexity of cross-border distribution.

Discussions with Djibouti in early 2026 emphasised maritime transport cooperation, port management, logistics services and capacity building in cold chain and agricultural exports. Egypt sees Djibouti as a strategic partner on the Horn of Africa trade axis, anchoring logistics linkages that extend from the Red Sea into East African markets.

These Africa-facing partnerships complement Egypt’s Mediterranean and Gulf links, creating a multi-axis approach to regional logistics integration.

Industrial clusters, logistics integration and exports
Foreign investments in logistics infrastructure have a measurable impact on export sectors. Industrial clusters—such as textiles, home appliances, automotive components and chemicals—are increasingly co-located with logistics assets, enabling just-in-time production and rapid outbound shipments.

The home appliance sector has seen entry from major Chinese, Turkish and German investors, supported by golden licences that streamline approvals, provide five-year tax exemptions and accelerate land allocation. These investments boost local production capacity while leveraging Egypt’s expanding logistics network for export distribution.

The automotive sector has benefitted from localisation strategies and logistics readiness, with Chinese manufacturers producing fuel-powered vehicles and components for domestic and regional markets. Proximity to Ain Sokhna and Alexandria ports facilitates both input importation and finished vehicle exports.

In textiles and garments, the presence of Turkish and Chinese investors has accelerated the development of export value chains that rely on integrated logistics services. Logistics operators offering bonded warehousing and expedited customs processing have reduced lead times for shipments destined for the US, EU and Arab markets, supporting Egypt’s ambition of reaching $12 billion in garment exports by 2031.

Trade facilitation, customs modernisation and digital logistics
While infrastructure investments dominate headlines, policy reforms aimed at reducing friction in trade procedures are equally consequential. In 2025, Egypt signed a cooperation agreement with South Korea focused on customs digitisation, faster clearance procedures and integrated logistics services for e-commerce and parcel shipments.

Modernising customs operations—including leveraging digital documentation, risk-based inspections and automated cargo tracking—directly impacts logistics efficiency. For exporters of time-sensitive goods, reducing clearance times by even a day can significantly improve competitiveness in distant markets.

These reforms, linked to Egypt’s broader IMF programme and export strategy, underscore that physical infrastructure must be complemented by procedural efficiency to maximise foreign investment impact.

Quantifiable outcomes and future prospects

• Alexandria Port, handling nearly 800,000 TEUs with a 41% year-on-year increase, underscores rising regional transit volumes.
• Red Sea Container Terminals (RSCT) at Ain Sokhna, with an operational Phase 1 and a planned annual capacity of 3.5 million TEUs, adds depth and modernisation to Egypt’s port infrastructure.
• Sokhna Logistics Park—an $85 million DP World-BII project—expands integrated logistics capacity with linked cold chain and bonded services.
• DP World’s cold storage investment adds 16,000 square metres of temperature-controlled space, strengthening export readiness.
• European logistics operators such as DHL and Scan Global Logistics enhance multimodal service networks, supporting freight flows and export reliability.
• Customs digitisation agreements with partners like South Korea signal progress in procedural efficiency.
• These developments demonstrate that Egypt’s logistics ecosystem is shifting from being primarily a transit corridor to becoming an integrated platform for trade, export distribution and value-added supply chains.

From transit to logistics leadership: Egypt’s way ahead
Egypt’s 2025 logistics landscape is evidence that foreign partnerships and FDI are more than capital injections; they are enablers of structural change. By knitting together ports, logistics parks, customs systems, digital trade platforms and industrial clusters, foreign investments are fuelling a logistics engine capable of sustaining export-led growth.

The Suez Canal remains central, but its value is increasingly amplified through logistics depth—ports that link to industrial clusters, integrated services that reduce trade friction, and international partnerships that bring both capital and operational expertise.

As Egypt completes its IMF reform programme and continues pursuing export diversification, partnerships with global port operators, logistics service providers and industrial investors will be critical. If 2025 is a benchmark year for FDI and logistics expansion, the groundwork laid now positions Egypt for long-term integration into global and regional supply chains, fulfilling its ambition to serve as a logistics hub bridging continents and connecting markets.