Egyptian Minister of Investment and Foreign Trade, Hassan al-Khatib, and Russian Minister of Industry and Trade, Anton Alikhanov, witnessed the signing of the usufruct contract for the Russian Industrial Zone in the Suez Canal Economic Zone.
The establishment of the Russian Industrial Zone in Egypt marks a unique undertaking, being Russia’s first such venture in an Arab nation since the Soviet Union’s dissolution.
The area represents a point of significant mutual interest for both Egypt and Russia.
Russia’s leadership has been significantly influenced by the prospect of having a physical presence in new markets. It anticipates achieving the primary goal of its foreign economic strategy, which is to increase the share of non-primary exports in foreign trade.
Egyptian-Russian negotiations on establishing the Russian Industrial Zone in Egypt began after the meeting between Presidents Vladimir Putin and Abdel Fattah al-Sisi in Sochi in 2014.
Actual negotiations on establishing the zone commenced in August 2017.
The “pivotal project for Russian-Egyptian cooperation” offers residency in offices east of Port Said or branches of automotive, petrochemical, energy, pharmaceutical, and heavy construction materials companies. The special economic zone in Egypt is considered a launching pad for the expansion of Russian companies’ business in Egypt, the Middle East, and Africa. Egyptians view the Russian Industrial Zone as a pioneering project within the Suez Canal Economic Zone.
Investments in the Russian Industrial Zone will amount to $4.6 billion. Named “Sun City”, it will be built on an area of 2,000 hectares.
The city is located on the Egyptian Mediterranean coast, near the Suez Canal, through which 20 percent of global trade passes.
The spirit of Russia will be infused into this industrial city, as it will be built in a semi-circular shape and will consist of two sections: an eastern section named “Moscow” and a western section named “Saint Petersburg.”
The land between the two sections will be named “the Urals,” named after a mountain range located in the central region of Russia.
There will also be a triangular-shaped entertainment area and park for the residents of this city to spend their leisure time.
