Contents Topic Page No. Chapter 1:  Preface  Industrial Development in South Sinai 1  Total number of Industrial Establishments in South Sinai 2-3 Governorate distributed according to the Activity in Each  Financial and Economic indicators of the industrial activity in 4 South Sinai Governorate Chapter 2 - Abstract 5 - Information about South Sinai Governorate - Location – Area - Administrative Divisions 6 - 15 - Education 15 - Population 16 - Health 17 Chapter 3 Primary, Natural Materials and Infrastructure First: Agriculture wealth 18 Third: Animal Wealth 19 Second: Mineral wealth 20-21 Fourth: Infrastructure 21 Chapter 4 - Factors of Investment 22 - Incentives for attracting investment in South Sinai Governorate 23 - 24 References 25

Chapter 1

South Sinai Governorate

 Preface In the framework of the direction of the state to establish industrial zones in different governorates to achieve industrial development in the Arab Republic of , the state began to develop the governorates bordering the gulfs of and aqaba, of which the investment in promising governorates such as South Sinai Governorate, on which the new industrial areas was established because of the natural resources which the governorate has (such as White Sand - Kaolin - Coal - Manganese - Copper - Sodium Chloride). The Governorate contributes in industrial activity through many Ferro Manganese - Gypsum - Ceramics and Chinese - plastic and paper industries. The number of existing facilities recorded In IDA reached 9 facilities with investment costs about 5.4 billion pounds and employs about 4604 workers with wages of about 99 million pounds divided on all activities, mainly activities of oil, its refined products and natural gas, followed by mining and quarrying, building materials, Chinese porcelain and refractories. The governorate of South Sinai includes the Industrial Zone in Abu Zenimah. The investment in South Sinai governorate depends on basic factors represented in the infrastructure such as Roads, Transportation, Energy, Potable Water and Sewage. The governorate as well as characterized by South Valley University, which obtain its graduates the highest degree of university education and by the specialized institutes that graduate the highest skilled manpower in various scientific, administrative and professional disciplines, providing investors with wide range of choices for the appropriate human skills their needs. South Sinai governorate characterized by its outstanding position on the gulfs of Suez and aqaba, the main artery linking Asia and Africa, which facilitates marketing the products from factories to inside and outside the governorate.

The proposed projects that based on the economic resources include Ship industry and Agriculture industries, in addition to many proposed industries based on quarries available in the governorate such as Ferro Manganese industry. According to what mentioned above, the research methodology will explain the industry in South Sinai governorate in detail as well as some information about the governorate and the available resources and wealth in it.

Industrial development in South Sinai Governorate

The Industry and Mining in South Sinai:

Despite the long history passed since discovering and exploiting the mineral wealth in Sinai, the activity of industry and mining still very limited. At the end of 1983, the total industrial activity in Sinai includes 40 facilities, employing about 4,000 workers, mostly in the fields of oil, gas extraction and small craft industries such as agricultural, food, environmental, handicrafts, furniture and clothes industries. Industrial Zone in Abu Zenimah: Industrial Zone is located 35 kilometers far from the city, on an area of 2000 km2. The Industrial Zone needs Industrial Sewer and Telephone Network Platform, so the case has been presented to the Industrial Development Authority to supply facilities for the entire zone and to allocate lands for the investors in cooperation with the governorate.

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Statement of the Total Number of Industrial Establishments registered in IDA in South Sinai Governorate Distributed according to the Activity in Each City

Value by Thousand Pounds

Establishment Production Investmen Labo Total of Activity s No. Cost t Costs r No. Fees

South Sinai

Exploiting Mines and Quarries 2 92640 55000 123 2200 Crude oil, its refined products and 2 4899720 5119383 2932 87284 Natural Gas Production& Distribution of Electric 1 81823 159537 109 3040 Light & Power Building Materials, Chinaware, 3 287000 375217 1437 6600 Porcelain & Refractories Food, Beverages & Tobacco 1 1556 6000 3 47

Total 9 5362739 5715137 4604 99171

AT-tur Crude oil, its refined products and 1 52480 6000 126 1630 Natural Gas Total 1 52480 6000 126 1630

Abu Zenimah District

Exploiting Mines and Quarries 2 92640 55000 123 2200 Building Materials, Chinaware, 2 214400 350070 707 6600 Porcelain & Refractories Total 4 307040 405070 830 8800

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Statement of the Total Number of Industrial Establishments registered in IDA Distributed according to the Activity in South Sinai Governorate

Value by Thousand Pounds

Establishment Production Investmen Labo Total of Activity s No. Cost t Costs r No. Fees

Ras Sudr District Building Materials, Chinaware, 1 72600 25147 730 Porcelain & Refractories Food, Beverages & Tobacco 1 1556 6000 3 47

Total 1 74156 31147 733 47

Abu Redes District Crude oil, its refined products and 1 4847240 5113383 2806 85654 Natural Gas Total 1 4847240 5113383 2806 85654

Sharm el Sheikh District Production& Distribution of Electric 1 81823 159537 109 3040 Light & Power Total 1 81823 159537 109 3040

The Governorate Gross total 9 5362739 5715137 4604 99171

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Economic and Financial indicators of the Industrial projects in South Sinai Governorate Distributed according to the

Value by Thousand Pounds

Establishment Production Investmen Labo Total of Region's Name s No. Cost t Costs r No. Fees

AT-tur District 1 52480 6000 126 1630

Abu Zenima District 4 307040 405070 830 8800

Ras Sudr District 2 74156 31147 733 47

Abu Redes District 1 4847240 5113383 2806 85654

Sharm el Sheikh District 1 81823 159537 109 3040

Total 9 5362739 5715137 4604 99171 The previous table shows that the total number of industrial establishments in South Sinai Governorate has reached 9 entities, the total value of production 5.4 pillion pounds, employing 4604 workers with total wages of 99 million pounds. What mentioned above declares the following indicators: - Average worker's annual wage in South Sinai governorate is 21540 thousand pounds and 1795 pounds monthly. - Value of a pound in investment = 0.94 pounds - Value of a pound in wages = 54.1 pounds. - Worker's productivity = 1164.8 thousand pounds/ worker.

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Chapter 2 Some information about the governorate: South Sinai Governorate is one of the Egyptian governorates and one of the two Governorates sharing the area of the . Al-tur city is the capital of South Sinai Governorate; it consists of 8 administrative centers. Location: South Sinai Governorate located between the Gulfs of Suez and Aqaba, it takes a form of a triangle and its base locates at the north of Taba, east of Aqaba Gulf to the north of Ras Sidr, west of the Gulf of Suez. Area: The area of South Sinai is about 30 thousand kilometers, represents 3% of the total area of Egypt. Administrative Divisions: South Sinai Governorate divided to 8 includes: 1. Abu Redais 2. Abu Zenimah 3. 4. 5. Ras Sudr 6. Sharm el Sheikh 7. Saint Catherine City 8. (Egyptian Tur Sinai)

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Education: South Sinai Governorate has the following Faculties: 1 – Existing faculties including: Education - Science - Arts - Specific Education - Islamic Studies - Veterinary Medicine - Faculty of Engineering - Faculty of Agriculture. 2 - New faculties to be open: (Faculty of Islamic Studies for females (Al-Azhar University). 3 - Higher Institutes: Institute of Social Service "Private" (four years). 4 - Higher Institutes to be establish such as the Higher Institute for Industrial Engineering. Population: Population of South Sinai Governorate distributes to rural and urban. Total population of the South Sinai reaches about 155 thousand people, according to the census of the Central Agency for Public Mobilization and Statistics in 1/1/2010. Health: There are a number of health units in the centers and cities of the South Sinai Governorate. The armed forces has set up many hospitals in the Sharm El Sheikh city in addition to Sharm el-Sheikh hospital which was opened in 1997.

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Chapter 3 Water resources in South Sinai Governorate Represents in rains and floods water - groundwater - natural springs, many projects have been established to increase water resources in South Sinai, including: A - Salam Canal project b- Defreswar Sahara Resources of Energy in South Sinai Governorate The South Sinai Governorate is one of the most important oil-producing sites (Abu Redes - Ras Sudr) in addition to marine sites in the Gulf of Suez, where it alone produces a third of Egypt's oil. First: Agriculture Wealth: Cultivated lands in South Sinai reaches 1500 feddan, produces 160 thousand tons per year of vegetables, fruits and 410 000 ardebb of grain. Second: Animal Wealth: Animal wealth in the Sinai estimates about 265 thousands heads of Sheep, Goats, Camels, Cows, and Buffaloes, relying mostly on natural pastures. Third: Mining Wealth: The available metals in South Sinai Governorate are Coal, Manganese, Copper, Kaolin and Sodium Chloride. There are in the governorate of South Sinai, Manganese Company in Abu Zenimah, producing Ferro Manganese as well as there are limited exploitation of White Sand, Kaolin and Gypsum factory at Ras Malaab near Abu Zenimah.

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Forth: Infrastructure: First: Electricity: The project of connecting South Sinai with national electricity grid is completed through linking line of "Ras Sudr - Abu Redais" along 95km, as well as the line of Abu Redais – Al-Tur - Sharm el-Sheikh along 210km with investments of 250 million pounds. Second: Potable Water and Sewage: 7 million pounds have been allocated in 2010 to projects of potable water and sewage in South Sinai governorate. In Sharm el-Sheikh, water works have been executed, raising the efficiency of the pumps in a number of ground-water reservoirs at a cost of 700 thousand pounds and allocating 2.2 million pounds to potable water at the city of Tur Sinai. Regarding Sewage, the replacement and renewal of the sub-station drainage at Naama Bay area has been completed at a cost of 400 thousand pounds and a sum of 500 thousand pounds have been allocated to replace and renew marine sports station and its drain line.

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Chapter 4

Factors of Investment in South Sinai Governorate

- Incentives for attracting investment in South Sinai Governorate

Factors of Investment in South Sinai Governorate

South Sinai Governorate has many investment factors that may be useful in the field of industrial development:- - Eighty thousands feddan available for agricultural reclamation on ground water at Kiran Valley. - Plenty of water features in At-tur, Ras Sudr, Dahab and Aqaba gulf which leads to plenty production of fishery wealth. - Crude material (Oil, Iron, Copper, Phosphate, Manganese, Carbon, Cement, Glass sands, Gravel, Pebbles, Coil and Limestone) - Many of Natural (Ras Mohammed - Kiran Valley Protectorate – Taba Protectorate – Saint Catherine Protectorate) - The Egyptian Turkish co-operation for developing Sinai. Such Partnership will execute new investment projects in the fields of Car Industry, Spare parts, Production's Accessories, Sea Transportation and Construction to benefit from the outstanding Turkish experience in such fields.

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Incentives for attracting investment in South Sinai Governorate

State focus on promoting projects of development in Sinai, especially industrial projects of medium and small labor-intensive to provide employment opportunities as the government going to provide a package of incentives to attract investment to these , Providing necessary funds for industrial projects are economically feasible, thus contributing to raise the development projects and speeding the implementation to achieve its objectives and returns of economic rapidly and will be dealt seriously with the challenges that impede the flow of investment to the Sinai in the framework of the priority given by the state for the development of Sinai, and if the government provided attractive climate for investment through the provision of infrastructure and facilities, as well as the task is ready at the national private sector to participate in the national project for the development of Sinai from the National to be. The private sector presents a number of important proposals to attract investment and development in Sinai, including:- 1- Un-clearing the status regarding the basic partnership of the privet sector in the development, supplying employment opportunities and achieving an economic and social progress in accordance with the concerned principles, standards and rules shall be removed. 2- The Government shall take executive steps to direct the cancellation of energy support towards energy intensive industries and allocate such sums to establish the required infrastructure in order to attract the investments of the National Project for the Development of Sinai, mainly extending the irrigating water to Sinai through El-Salam Canal. 3- Developing a system for allocating lands in Sinai, allowing only Egyptian whether people or companies to possession lands, provided on abiding with the schedule of development, otherwise

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the land shall be seized immediately. The mater may contribute in speedy development as well as deepening the loyalty. 4- Assigning consultancy offices that contain national agriculture experiments to prepare the required studies about soil analyzing, ground water, directing agriculture investment projects as well as the industrial, service projects and speedy setting of industrial and agriculture development maps. 5- Determining financing system with General Egyptian banks to facilitate financing of the advantage projects without any exaggeration or delaying as of such projects is a national strategy project.

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References

1. Official website of South Sinai Governorate.

2. General Administration for Information and Technology Systems

within IDA.

1. Central Agency for Public Mobilization and Statistics

2. South Sinai governorate Information Center.

3. Directorate of Education, South Sinai Governorate

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