The transformation of the zone reflects the broader evolution of China-Egypt economic relations as the two countries mark 70 years of diplomatic ties, with cooperation expanding from infrastructure and trade to manufacturing, technology transfer, supply-chain development, and workforce training.
Chinese President Xi Jinping began an official visit to Egypt on Tuesday, his first visit to the country in a decade, with the aim of boosting economic and diplomatic ties under their comprehensive strategic partnership.
For Cao Hui, executive director of Egypt-TEDA Special Economic Zone Development Co, the zone's development reflects this broader evolution in bilateral economic ties.
Speaking to Cairo News Channel and China Daily, Cao said Egypt’s strategic location and investment climate have helped attract an increasing number of Chinese companies, while government incentives have supported the expansion of investment in the zone.
“When the TEDA cooperation zone began construction in 2008, a four-person team comprising three Chinese and one Egyptian faced the task of developing the desert site under extreme conditions, with temperatures reaching 50 C and tight deadlines,” Cao said.
Today, the zone has a developed area of more than 10 square kilometres, hosts more than 200 companies, and has recorded sales exceeding $7.3 billion.
Factories in the zone produce fibreglass, ductile iron pipes, tyres, photovoltaic modules, battery-storage systems, and other industrial products, with an increasing share of output destined for export markets.
Speaking to China Daily, Cao said the development marks a shift in China-Egypt cooperation from infrastructure construction toward building industrial capacity and developing local skills.
He described the transformation as moving “from transfusing blood to creating blood,” with Chinese companies increasingly establishing factories, supply chains, and skills in Egypt.
Building Egypt’s manufacturing capacity
Cao said companies operating in the TEDA zone are helping Egypt strengthen domestic manufacturing in sectors where the country has traditionally relied heavily on imports.
“TEDA cooperation zone companies are plugging critical supply-chain gaps across multiple industries, from new energy and advanced equipment to electronics, automotive components, building materials, and chemicals,” Cao said.
“The park's companies are not only helping Egypt buy less, but also are helping Egypt sell more. This is a truly deep contribution to Egypt's economy,” he added.
The zone’s location is central to its role as a manufacturing base.
Cao said the Suez Canal Economic Zone links Africa, Asia, and Europe, while its proximity to Cairo and connections to key economic areas enhance its appeal to investors.
He said manufacturers operating there have direct access to international shipping routes, allowing Egypt to serve as a production and export base for markets in Africa, the Middle East, and Europe.
“The investment climate is suitable for attracting capital across different sectors,” Cao said, pointing to Egypt’s strategic location, government support, and workforce as factors supporting Chinese investment.
He added that the Egyptian government provides support to Chinese companies, including tax incentives and other measures to facilitate investment.
“These incentives have helped TEDA expand its investments in Egypt,” Cao said, adding that Egypt’s tax framework provides significant facilities for companies operating in the zone.
From factories to export platforms
The industrial transformation is also reflected in the companies operating inside the zone.
Jushi Egypt, described by TEDA as Africa’s largest fibreglass production base, operates four production lines with a combined annual capacity of 360,000 tons, backed by a total investment of about $1 billion.
More than 95 percent of its products are exported through the Suez Canal to Europe and the Americas, generating around $100 million in annual export revenue for Egypt, according to the company.
The facility employs more than 1,900 Egyptians, with local workers accounting for 98 percent of its workforce.
Xinxing Ductile Iron Pipes has an annual production capacity of 250,000 tons, supplying Egypt’s water pipeline network as well as markets across the Middle East, Africa, and Europe.
Cao said such projects demonstrate how Egypt is increasingly being used not only as an investment destination but also as a production base for regional and international markets.
The zone has also contributed to Egypt’s public finances, with cumulative tax payments reaching $350 million by June 2026, according to TEDA.
Developing local talent
The zone’s economic impact extends beyond investment and production.
Companies operating there have created more than 10,000 direct jobs and tens of thousands of indirect employment opportunities, while more than 90 percent of employees are Egyptian, according to Cao Hui.
Cao said the focus is increasingly shifting from creating jobs to developing Egyptian workers’ technical and managerial capabilities.
Egyptian employees are now working in smart manufacturing, quality control, equipment maintenance, logistics, finance, legal services, and management.
“Talent development is where we make our most determined investment,” Cao said.
TEDA has partnered with China’s Luban Workshop vocational education programme, through which Egyptian employees have travelled to China for professional training.
Cao said some of those who received training in China have subsequently risen through the ranks to senior positions at Egypt TEDA Investment Co and Egypt-TEDA Special Economic Zone Development Co.
A China-supported vocational training centre for the Suez Canal Economic Zone has also been earmarked for the TEDA zone’s expansion area.
The planned facility is expected to provide training in mechanical engineering, electrical power, renewable energy, automotive assembly and maintenance, industrial robotics, electronic-product design and maintenance, and communications and network technology.
A changing China-Egypt economic relationship
Cao said the development of TEDA has taken place alongside a broader improvement in Egypt-China economic relations.
He stated that bilateral relations have developed significantly under President Abdel-Fattah El-Sisi, creating a favourable environment for stronger economic and trade cooperation.
According to Cao, the improved economic climate has encouraged more Chinese companies to consider Egypt as an investment destination.
He said the Egyptian government continues to support Chinese companies operating in the country, with the strategic location and investment climate among the main factors encouraging Chinese firms to expand.
The TEDA model, he said, demonstrates how Chinese investment can contribute to industrial development by combining capital, manufacturing expertise, technology, and workforce development.
TEDA’s next phase
As the zone moves into its next phase, Cao said its development will increasingly focus on green and smart manufacturing, reflecting the global shift toward lower-carbon industrial production.
TEDA is also adopting digital customs and logistics services and developing cross-border renminbi settlement mechanisms to facilitate trade and investment.
Cao said the zone’s experience could provide lessons for other African countries seeking to attract manufacturing investment and accelerate industrialization.
Industrial parks cannot rely solely on factories and investment incentives, Cao noted. “They must adapt to local conditions, respond to local industrial and employment needs, develop local skills, and connect investors with domestic supply chains.”
For Egypt and China, the evolution of TEDA illustrates how seven decades of diplomatic relations have increasingly translated into industrial cooperation on the ground, from developing infrastructure in the desert to building factories, supply chains, export capacity, and a skilled local workforce.
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