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Russia’s industrial zone in Egypt to launch by end of 2020-early 2021

Manufacturing agricultural machinery will be in demand not only in the Egyptian market, but also in those of other African countries, the Middle East, Europe, thr head of the Suez Canal Authority said

MOSCOW, February 20. /TASS/. The Russian Industrial Zone in Egypt will be launched in late 2020 - early 2021, Head of the Suez Canal Authority Mohab Mamish told TASS.

According to him, the industrial zone will be "launched by the end of 2020 - beginning of 2021."

According to Mamish, enterprises manufacturing agricultural machinery that is in demand in the Egyptian market will be located in the Russian industrial zone. According to him, such products will be in demand not only in the Egyptian market, but also in the markets of other African countries, as well as the Middle East and Europe.

Press service of the Ministry of Industry and Trade of Russia said earlier that the first eight companies would sign an agreement on participation in the Russian industrial zone in Egypt on February 19. According to the report, the Russian Minister of Industry and Trade Denis Manturov said that the first portfolio of eight agreements of intent with interested companies would be signed by Russian Export Center as part of the planned "Presentation of the export potential of the Russian industrial zones in Egypt" on February 19, 2019.

According to the Ministry, 20 Russian companies have already confirmed their interest in locating their facilities during the project’s first phase until 2023. In general, the number of companies interested in participating in the project exceeds 50.

The planned Russian government investment in developing the zone’s primary infrastructure will reach around $190 mln, estimated total private investment for the entire implementation period of the projects is estimated at $7 bln.

Intergovernmental agreement regulating the first Russian industrial zone was signed on May 23, 2018. According to forecasts of the Ministry of Industry and Trade, the project will take about 13 years, but by 2026 its resident companies will be able to manufacture production for $3.6 bln annually.