CAIRO - 18 April 2024: The Egyptian Cabinet has approved the establishment of the Suez Canal Company for Modern Boats (S.A.E.) as a free zone in a move aimed at boosting the yacht industry and expanding its global presence, the Cabinet announced in its weekly meeting.
The company will specialize in the manufacturing and maintenance of yachts and marine units, with a commitment to meeting all necessary licensing and regulatory requirements.
The primary objective of the project is to develop a yacht industry in Egypt that can compete with European and international standards. By manufacturing, maintaining, and exporting marine yachts, the country aims to generate foreign currency earnings and position itself as a prominent player in the global yacht market.
Under the approved draft decision, the Suez Canal Company for Modern Boats will be required to export a minimum of 100% of its annual production volume outside of Egypt. Additionally, the company will be obligated to incorporate a local component in its products, accounting for at least 50% of the overall production, within a maximum period of three years from the date of commencing operations.
The establishment of the free zone is expected to have a positive impact on employment rates and the development of skilled workers within the yacht industry. The zone will provide opportunities for training and enhancing the expertise of workers, thereby improving their employability and contributing to the growth of the labor market.
The Egyptian government's initiative to create a specialized free zone for yacht manufacturing and maintenance underscores its commitment to fostering economic diversification and attracting foreign investment. By capitalizing on the country's strategic location and utilizing the expertise of its workforce, Egypt aims to establish itself as a global hub for the yacht industry.
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