Cairo: The Cabinet's media center refuted claims on Tuesday suggesting that navigation rights in the Suez Canal had been transferred to Abu Dhabi Ports Group under a 50-year usufruct agreement. This clarification comes following a deal to develop an industrial zone between the General Authority for the Suez Canal Economic Zone (SCZone) and the group.

According to State Information Service Egypt, a video released by the center on social media clarified that the agreement is solely focused on the development of Kizad East Port Said. It emphasized that this deal is unrelated to navigation rights at the international waterway, which is governed by the Suez Canal Authority, not the SCZone.

The center assured that the agreement does not compromise Egypt's sovereignty over the Suez Canal or its assets. The canal's status is safeguarded by Article 43 of the Egyptian Constitution, which obliges the state to maintain and develop it as a sovereign international waterway.

The Kizad project will cover 20 million square meters within the East Port Said industrial zone, which has a total area of 64 million square meters. Notably, the development does not include the East Port Said Port itself.

The agreement is structured as a usufruct contract in accordance with Law No. 83 of 2002, which addresses special economic zones. The center highlighted that this is a typical framework for agreements signed by SCZone with industrial developers and investors.

Under the agreement, Abu Dhabi Ports Group is set to develop and manage a logistics and service-oriented industrial zone. This initiative aims to attract investments in key sectors, promote industrial localization, facilitate technology transfer, create jobs, and enhance state revenue through taxes, customs, and added value.

Additionally, the project seeks to improve transit trade, bolster global supply chains, and increase Egyptian exports.