The New Administrative Capital for Urban Development Co. is holding talks with investors from European and Gulf countries to implement industrial and logistics projects in the city’s free zone, a source familiar with the negotiations at the company told Al Manassa.
The source, who asked not to be named, said the free-zone projects, expected to be implemented in 2027, will focus on import and export operations and shipping, given the presence of the high-speed electric rail, which facilitates access to various seaports such as Ain Sokhna and Alexandria.
In October 2024, the New Administrative Capital signed an initial memorandum of understanding with DP World to develop a general free zone within the capital’s lands on an area of about 500 feddans (2.1 million square meters), including key industrial sectors such as automobiles and fast-moving consumer goods.
The source at the New Administrative Capital company said investors asked for a set of tax and logistics incentives and for facilitating the issue of permits needed to implement projects. The requests are currently being studied, and the source expected the incentives to be announced in the first half of 2026, in favor of all companies seeking to invest in the free zone.
The source said the company plans to use a large share of investment proceeds from the free zone next year to complete the infrastructure needed for the second phase of the New Administrative Capital.
Cost estimates for implementing infrastructure and utilities projects in the second phase of the New Administrative Capital have risen sharply, bringing the total cost close to 500 billion Egyptian pounds ($10.6 billion), according to a source familiar with the file at the company in previous statements to Al Manassa, compared with 350 billion pounds ($7.4 billion) for the first phase, which covers the same area of 40,000 feddans (168 square kilometers).
Infrastructure work for the second phase includes extending water, gas, and electricity connections, in addition to implementing main and secondary roads, as well as the technological infrastructure for a smart city.
The ownership structure of the New Administrative Capital company is divided as follows: 29% for the National Service Projects Organization, 22% as an in-kind stake for the Armed Forces Land Projects Agency, and 49% for the New Urban Communities Authority, making the military the majority shareholder.
