Russia is set to begin construction on an industrial zone in Egypt near the Suez Canal, according to President Vladimir Putin. The project aims to expand Russia’s trade with Egypt and the continent of Africa as a whole. During a plenary session of the Russia-Africa Economic and Humanitarian Forum in St. Petersburg, Putin revealed that he had spoken with Egyptian President Abdel Fattah al-Sisi and anticipated that construction would commence this year.
Putin emphasized the importance of stronger industrial cooperation between Moscow and African nations, highlighting the demand for Russian industrial products such as cars and construction equipment. He acknowledged the reputation of these products for their quality, reliability, and ease of use. Moreover, he mentioned the presence of specialized service centers in Africa to support Russian equipment and the development of new tools to facilitate African purchases, transportation, and after-sales service.
The proposal for a Russian industrial zone in Egypt was approved in 2014 and is expected to cover two sites: one on the Red Sea coast in the Ain Sokhna area and another in Port Said at the northern end of the Suez Canal. These sites will span a total area of 525 hectares and feature transportation and port infrastructure. The tax regime within the industrial park is designed to be favorable for resident Russian companies, with a fixed tax rate of 10% for businesses involved in the project and personal income tax. Sales tax will be abolished, making it an attractive location for investment.
Additionally, in 2014, Egypt announced plans to modernize the Suez Canal and establish various industrial parks, including ones for Russian, Chinese, and Italian companies. These initiatives are anticipated to boost economic growth, job creation, and trade between Egypt and these countries.
The Russian industrial zone in Egypt is expected to generate tens of thousands of jobs, providing employment opportunities for local communities. This project aligns with Russia’s strategic goal of expanding its trade and economic influence in Egypt and across the African continent. By establishing a presence in the Suez Canal area, Russia will be well-positioned to facilitate trade and exports to Africa, leveraging the canal’s significance as a key global transportation hub.
This development showcases the commitment of both Russia and Egypt to strengthening their bilateral economic relations and fostering cooperation in the industrial sector. It also highlights the potential for further collaboration between Russia and African countries, driving trade, investment, and economic development. As the project progresses, it is likely to attract more international attention and contribute to the growth of Russia’s trade with Egypt and Africa in the years to come.
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