Moscow, Cairo to seal final deal for Russian industrial zone in days

Moscow and Cairo are expected to sign the final agreement for Russia to build an industrial zone in Suez Canal area in few days, an Egyptian official said Monday.

On February 2, 2016, Russia and Egypt signed a memorandum of understanding for the creation of a Russian industrial zone near the Suez Canal.

Designed to offer favorable treatment and preferences for Russian resident companies, the anticipated industrial zone will cover an area of 5 million square metres in the east of Port Said.

The zone will be investments worth more than $7 billion; while the cost of construction will amount to $190 million.

There will a residential area in Ain Sokhna to house 600,000 people, in addition to establishing an industrial zone, Suez Canal Economic Zone’s (SCZone) advisor Samir Abdel Shafi further said at the Intelligent Cities Exhibition and Conference 2017 (ICEC).

Russian carmakers, petrochemical enterprises, energy and medical companies are expected to locate their production facilities within the zone.

The industrial zone is set to become a platform for Russian companies to tap fast-growing African markets, Kalamanov said in earlier statements last July.