Port Said Governorate
Port Said's free zone offers 0% tax for 7 years with 2.5 billion consumers accessible via trade agreements—but Houthi attacks collapsed canal revenue from $9.4 billion to $1.8 billion, exposing geographic dependency.
Port Said Governorate commands the Mediterranean entrance to the Suez Canal—a geographic position that created Egypt's principal free trade zone and one of Africa's busiest ports. Annual throughput: 4,500 ships, 10.8 million tonnes cargo, 1 million TEUs, 2.5 million passengers. The Port Said Port Authority targets 5.4 million TEU capacity by 2025 through the combined West, East, and El Arish port complex.
The Suez Canal Economic Zone (SCZONE) offers powerful incentives: zero taxes and customs on machinery and materials for export; up to 7 years of zero income tax for new companies. With 2.5 billion consumers accessible through custom-free trade agreements spanning Europe, Africa, and the Middle East, the location creates natural transshipment logic.
Investment accelerated through 2024-2025. AD Ports Group (UAE) signed a November 2024 framework agreement to explore building and operating an East Port Said economic zone. May 2025 brought a 50-year renewable usufruct agreement to develop a 20 km² industrial and logistics park. This positions Port Said as a "key hub for international trade and investments serving East-West routes."
Port Said's industrial base—textiles, glass, cosmetics, watches, batteries—complements transshipment. The city exports Egyptian cotton and rice. Yet Houthi attacks devastated parent canal revenues: $9.4 billion (2022-23) fell to $1.8 billion estimated (2024-25). Port Said demonstrates how infrastructure advantage creates dependency on geopolitical stability beyond local control.