Egypt’s Association of Investors for Small and Medium Enterprises (AISME) is planning to set up an industrial complex for small and medium industries in SCZone (Suez Canal Economic Zone) at an investment of 1.5 billion Egyptian pounds ($90 million), its chairman has said.

The complex would be developed over an area of one million square metres and will house 1,050 factories, Alaa El Sakaty told Thomson Reuters Projects.

"The project would be implemented in three stages and completed in three years. The first phase will create 5,000 direct and 10,000 indirect jobs,” he said, adding first phase construction will start within the next three months.

El Sakaty said each factory will be 300 square metres in size and come equipped with machinery.

“The factories would be offered on 49-year leases, and factory owners will be provided with product marketing, machine maintenance and quality control services through specialised companies," he said.

He said the project aims to manufacture about 1,000 products that will include import substitutes as well as input materials for other products.

Egyptian Minister of Trade and Industry Tariq Qabil announced last month that two million sqm of free land has been allocated for small and micro-industries in Upper Egypt over the past two years.

(1USD= 17.63 Egyptian Pounds)

(Reporting by Eman Hamed; Editing by Bhaskar Raj and Anoop Menon)

(anoop.menon@thomsonreuters.com)

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