Tractors work on Egypt's New Suez Canal project at the Suez Canal zone, Egypt, June 13, 2015 - REUTERS/Asmaa WaguihCAIRO - 25 January 2018: Egypt and Russia have been negotiating $7 billion worth of Russian investments in the Russian Industrial Zone (RIZ) project in the East Port Said region since February 2015, with a final agreement to be finalized soon.RIZ would be established on an area of 5.25 million square meters and will be built over three phases, according to a statement issued by the Suez Canal Economic Zone.Russian Deputy Minister of Industry and Trade Georgy Kalamanov said in July that the RIZ will act as a platform for Russian products to enter the Egyptian and African markets.“I see it as a hub. I believe it is a first stage in shaping basic platforms for spreading Russian goods in African countries, “ Kalamanov announced.Development works of the first phase, involving 1 million square meters, will start this year and will be carried out by a Russian developer who will also work on attracting Russian investors and companies throughout 2018 and 2019. Chairman of the Suez Canal Authority (SCA) Mohab Mamish said in the statement that the RIZ would help cover East Port Said’s needs for industriesas well as the needs of the domestic market.He added that the zone would serve as a gateway for Russian companies to European and African countries.Mamish added that the land granted for the RIZ is on a usufruct basis and the condition for establishing projects and industrial complexes inside the Suez Canal Economic Zone is that 90% of the workforce is Egyptian. This would help the economic zone realize its target of creating 1 million jobs, according to the sustainable development strategy“Egypt Vision 2030,” Mamish said.In October, Mamish announced that negotiations between Egypt and Russia on the industrial zone have been successful. Trade between Egypt and Russia increased toabout $2.5 billion in the first seven months of 2017, from about $2.2 billion in the same period of 2016.Egypt’s exports to Russia reached $387.9 million in the first seven months of 2017, compared with $304.6 million a year earlier, a 27.3% increase.Total Russian investments in the Egyptian market are valued at about $62.8 million across 417 projects in various fields, according to the Trade Ministry.The project is part of ongoing efforts to encourage foreign and domestic investments in the Suez Canal Economic Zone, which is set to include an international logistics hub and areas for light, medium and heavy industry, as well as commercial and residentialdevelopments.Stretching over 461 square kilometers, the zone extends through the three SuezCanal governorates of Suez, Port Said and Ismailia, and will include six maritime ports, to be completed by 2045.

Source: Egypt Today January 25, 2018 08:03 UTC