Egypt's Suez Canal Economic Zone (SCZone) is seeking to strengthen economic and investment ties with Panama, particularly through enhanced collaboration between the two countries' business communities. SCZone Chairman Mostafa Sheikhon met with Panama's Ambassador to Egypt, Ricardo Isaza, to discuss expanding bilateral cooperation and advancing strategic partnerships in areas of mutual interest. The meeting took place at the SCZone headquarters in the New Administrative Capital.
The talks build on the existing partnership between SCZone and Panama's Colón Free Zone, which was established in 1948 as an autonomous, customs-segregated free-trade zone. The Colón Free Zone is the largest free port in the Western Hemisphere and the second-largest worldwide after Hong Kong. Sheikhon highlighted opportunities for exchanging expertise in logistics and industry, leveraging the competitive advantages of both zones.
SCZone's strategic location and infrastructure provide access to African and Middle Eastern markets through its Red Sea and Mediterranean ports. In contrast, Panama offers gateways to Latin American markets, comprising hundreds of millions of consumers. Closer cooperation between the two zones could boost Egyptian exports and strengthen global supply chains amid ongoing geopolitical challenges.
The Panamanian ambassador stated that the visit was part of preparations for an expected visit by Panama's foreign minister to Egypt, which will include a tour of SCZone. This visit will allow the minister to learn more about SCZone's development and progress as an economic and logistics hub. Isaza also invited Sheikhon to visit Panama in the first half of 2027 to discuss new opportunities for investment partnerships and integration between the countries' business sectors.
Egypt's SCZone has made significant progress in recent years, with 212 operating factories employing tens of thousands of Egyptian workers. Around 140 of these factories were established over the past four years. The SCZone's success is reflected in the 37 percent year-on-year increase in revenues, reaching EGP 15.9 billion during FY2025/2026, which ended in June 2026.
The potential for cooperation between SCZone and Panama's Colón Free Zone is substantial, given the complementary strengths of the two zones. By working together, they can create new opportunities for trade and investment, ultimately contributing to economic growth and development in both countries.
The deepening of economic and investment cooperation between Egypt and Panama is part of a broader effort to strengthen ties between countries in the region. As global economic challenges persist, such collaborations are crucial for promoting stability and prosperity. The expected visit by Panama's foreign minister to Egypt and SCZone will likely provide further impetus for this cooperation.
Key points
- Egypt's Suez Canal Economic Zone and Panama's Colón Free Zone are exploring stronger ties to boost investment and trade.
- The two zones can leverage their complementary strengths to create new opportunities for trade and investment.
- The cooperation aims to boost Egyptian exports and strengthen global supply chains amid ongoing geopolitical challenges.
