17 Nov 2021

 

Russia has revealed its master plan for the new industrial zone it will establish in the Suez Canal Economic Zone, specifically in the city of al-Ain al-Sokhna. Egypt and Russia signed an agreement in 2018 to build a special economic zone with incentives for Russian enterprises that operate in the zone.

The project is expected to take 13 years to be completed, but companies can begin producing products from 2022. Around 50 resident companies are expected to begin operations within the first 2-3 years. The key incentives provided are preferential tax treatment, preferential energy prices, rental discounts, and ready-made sites. Some of the potential Russian resident companies are in the industries of mechanical engineering, chemicals, pharmaceuticals, and metallurgy. The Russian government’s investments in developing their zone’s infrastructure are expected to reach USD190mn, with total private investments projected to range around USD7bn.

(Source: Zawya (English), See News (English), TASS (English), al-Youm al-Saabe, al-Shurouk, Sputnik, RT)