Egypt, Russia to sign new industrial zone deal by May

CAIRO - 27 April 2018: Egypt and Russia will sign an intergovernmental agreement on setting up an industrial zone by the end of May in Egypt’s East Port Said region in the Suez Canal Economic Zone, Russia’s Deputy Industry and Trade Minister Georgy Kalamanov said on Thursday.

In February 2016, Egypt and Russia signed a memorandum of understanding for the creation of a Russian industrial zone (RIZ) near the Suez Canal. Under the memorandum, the industrial zone, which will offer favorable treatment and preferences for Russian resident companies.

RIZ would be established on an area of 5.25 million square meters and will be built over three phases. The first phase involves one million square meters, creating 7,300 jobs in the construction field.

The second phase will develop 1.6 million square meters and will be finished by 2022, creating 10,000 jobs, while the third phase will develop 2.65 million square meters and generate 17,000 jobs.

The three phases are expected to be finished by 2031, when Russian companies will start operations, providing some 35,000 direct and indirect jobs.

The Egyptian and Russian sides have agreed to establish a company under the name of Moscow Economic Zone to be responsible of the zone’s operations and construction works.

The two sides have further agreed that the Egyptian and Russian governments will supervise the project, which is funded by the Russian Direct Investment Fund (RDIF) and a number of Egyptian banks.