Moscow and Cairo will sign the final agreement for Russia to build an industrial zone in Suez Canal area before the end of this year, Egypt’s trade minister said Tuesday.
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 industrial zone will cover an area of 5 million square meters in the east of Port Said, Minister Tarek Qabil further said in a ministerial statement.
The industrial zone will be with investments worth more than $7 billion; while the cost of construction will amount to $190 million, Qabil added.
Russian carmakers, petrochemical enterprises, energy and medical companies are expected to locate their production facilities within the zone.
Qabil made his remarks during his meeting with Russia’s Deputy Industry and Trade Minister Georgy Kalamanov along with officials from both countries in Cairo.
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.
