The International Finance Corporation (IFC) has partnered with Safaga Terminal Operating Company, part of the UAE-based AD Ports Group, to enhance port services in Egypt. This collaboration aims to create direct and indirect employment opportunities across trade, construction, and maritime and logistics sectors, reflecting a strategic South-South investment approach.
The project, supported by the National Bank of Kuwait (NBK) Egypt, focuses on developing a multipurpose terminal in Safaga on the Red Sea. It will expand the terminal’s container capacity to approximately 450,000 TEUs, improving trade efficiency and strengthening Egypt’s competitiveness in the region.
The expanded infrastructure is designed to facilitate the transport of agricultural products, construction materials, manufactured goods, industrial items, and minerals. The project prioritizes sustainability, including electrification of container handling equipment, and promotes a modal shift from road freight to short-sea shipping, which is expected to cut emissions by nearly 50,000 tons of CO2 annually.
Leadership from both AD Ports Group and NBK emphasized the strategic and environmental importance of the project. The initiative highlights the benefits of multilateral partnerships in funding long-term infrastructure projects while fostering economic growth, regional trade integration, and environmental responsibility.
IFC noted that enhancing trade flows is vital for stimulating economic development. This project is expected to position Egypt as a central trade hub, reduce logistics costs for local businesses, create high-quality jobs, and reinforce the UAE’s role as a key regional growth partner.
Egypt’s Red Sea port sector, despite growing at an annual rate of 6.8 percent, still faces capacity and infrastructure challenges. These limitations increase logistics costs and restrict access to global markets for export-oriented industries in Upper Egypt. The Safaga terminal expansion addresses these gaps, aligning with broader strategies to boost private sector employment and promote green, resilient, and inclusive development.
IFC has been active in Egypt since 1976, investing and mobilizing over $10 billion in private sector projects across fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, and gender-focused initiatives. This project further reinforces IFC’s commitment to sustainable economic growth and infrastructure development in Egypt.
