Industrial zone offers model for development

A new industrial zone is thriving in a desert area of Egypt, fueling growth in the local economy and enriching people's lives, according to an Egyptian executive of a China-invested project.

The China-Egypt TEDA Suez Economic and Trade Cooperation Zone, or TEDA Zone, has become a multifunctional industrial base after a decade in the region, with plans to include more sections in a new expanded area, said Nahla Mahmoud, general manager of the Egypt-TEDA SEZone (Suez Canal Economic Zone) Development Co.

The zone reflects the innovative concept of an industrial park as a new type of modern city, which includes hotels, amusement parks, supermarkets and other facilities to support residents' multifaceted lifestyles, Mahmoud said.

Located about 50 kilometers south of seaport city Suez and 120 km east of capital Cairo, the initial 1.34 square kilometers of the project hosts sectors and businesses such as manufacturing, logistics, technological development, commerce and finance.

"We want to make sure that everyone works well and enjoys life in the industrial park. We want to create an area that is suitable for living," she said.

At the broader level, the zone has contributed significantly to the development of local business and the economy.

It had attracted 77 enterprises by the end of 2018, with actual investment and sales both exceeding $1 billion, and generated about $58.2 million in taxes, according to Cao Hui, director of the company's investment attraction department.

Infrastructure work on the first two square kilometers of the expanded area has been completed, attracting eight enterprises to set up operations and forming industrial clusters for the production of cars and new types of building material.

The expanded area is expected to draw more than 100 enterprises and generate more than $2 billion in output value, Cao said.

Zhang Zhixiang, the company's executive director, said some groups in the TEDA Zone have filled gaps in Egypt's industries such as Jushi (Egypt) Glass Fiber Co.

It has introduced advanced production technologies and helped make Egypt one of the world's largest producers of glass fiber, Zhang said.

The zone has since provided more than 3,500 direct and 30,000 indirect job opportunities for the local economy.

"More than 90 percent of the employees in the TEDA Zone are Egyptians, with 40 of them at the management level. We have only six executives from China," Cao said.

The TEDA Zone started its localization process in 2018, Cao said, contributing beyond the growing number of local employees.

The company selects several outstanding staff every year and sends them to its headquarters in the Chinese port city of Tianjin for a month of training in business development and management methods.

Cultivating talent

The company has trained a group of talented professionals in the construction and related sectors, with many local industrial parks eager to hire TEDA's managers, he said.

Ahmed Abd El-Baky, deputy manager of the company's construction department, started his career in the TEDA Zone as a specialist of the department and has since learned a lot from the work there.

"It was difficult at the beginning because the Chinese like to have many plans and schedules, unlike the Egyptians who may not plan with so much detail," he said.

However, after weeks working with the team, El-Baky found that the Chinese way of preparation was more efficient and he started adapting to the work methods, which also helped him to multitask.

Ahmed Soliman, 30, a senior manager of the investment attraction department, said working for the project has improved his capabilities. He learned Chinese as an undergraduate and has a Chinese name, "Lan Baojian", which means "blue sword".

"The company gives us a large space to grow, with firm support and trust from both the Chinese and Egyptian leaders," Soliman said, adding that he was promoted to manager within a few years. "There are many development opportunities for us."