Russia is set to complete an industrial zone in Egypt near the Suez Canal, according to President Vladimir Putin. The aim of this project is to expand Russia’s trade not only with Egypt but also with the entire African continent. During the Russia-Africa Economic and Humanitarian Forum in St. Petersburg, Putin revealed that construction for the industrial zone is expected to begin this year. This will be followed by the establishment of the first production facilities which will produce goods to be exported throughout Africa.
Putin emphasized the importance of closer industrial cooperation between Moscow and African states. He highlighted the wide recognition and demand for Russian industrial products, such as cars and construction equipment, on the continent. These products are known for their quality, reliability, and ease of operation. To support the growing demand in Africa, specialized service centers are being established for servicing Russian equipment. Additionally, new tools are being developed to facilitate African purchases of Russian industrial products, transportation to the continent, and after-sales service.
The plans for a Russian industrial zone in Egypt were initially approved in 2014. The zone will encompass two sites: one along the Red Sea coast in the Ain Sokhna area, and the other at Port Said, located at the northern end of the Suez Canal. These sites will cover an area of 525 hectares and will include essential transport and port infrastructure. In order to attract resident Russian firms, the industrial park will offer a low-tax regime. It is expected that the project will generate tens of thousands of jobs. Businesses involved in the project will enjoy a fixed tax rate of 10%, while personal income tax will also be fixed at 10%, and sales tax will be abolished.
It is worth noting that, in 2014, Cairo announced plans to modernize the Suez Canal, which includes the development of several industrial parks. These parks will host not only the Russian industrial zone, but also areas dedicated to Chinese and Italian industries.
The establishment of a Russian industrial zone in Egypt signifies a significant advancement in Russia’s economic relations with Africa. It presents opportunities for both countries to expand and diversify their trade partnerships, benefiting their economies and fostering investments and job creation. As construction commences and the industrial zone becomes operational, further developments are expected to create more avenues for collaboration and cooperation between Russia and Africa.
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