Egypt, Russia ink Russian industrial zone agreement in SCC

CAIRO - 23 May 2018: The Egyptian government on Wednesday signed an agreement with Russia to establish a Russian industrial zone in Suez Canal Corridor (SCC).

The agreement was signed by Minister of Trade and Industry Tarek Kabil and his Russian counterpart Denis Manturov on behalf of their governments.

This 50-year agreement represents a significant shift in Egyptian-Russian strategic relations, Kabil said, adding that the deal is automatically renewable for five consecutive years upon the two parties' approval.

The agreement aims at bolstering mutual cooperation at the industrial level, increasing investment opportunities and creating an adequate environment for further technical and scientific cooperation between the two sides, the Egyptian minister added.

The industrial zone will be established on an area of 5,25 million square meters under the usufruct right system, Kabil noted.

The zone is expected to lure about $ 7 billion worth of investments.

This agreement was the culmination of intensive talks between the ministries of industry in both countries over the past two years, Manturov said.

The Russian ministry of trade and industry will prepare the industrial zone project plan as well as its master plan in cooperation with the Egyptian ministry and the Suez Canal Economic Zone officials, Manturov added.

The Russian side will be responsible for attracting and regulating projects, product manufacturing and service-providing at the Russian industrial zone, the Russian minister noted.

Ambassador of Egypt to Russia Ihab Nasr, Chairman of the Egyptian Commercial Service (ESC) Ahmed Antar and Head of the General Organization of Export and Import Control Authority Ismail Gaber were among the officials witnessing the signing of the agreement.