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10 facts about the Russian industrial zone in Suez

The project is due to launch in 2018 and be fully functional by 2035 with investments worth $4.6 billion.
© Egypt Business Directory

Russia plans to build an industrial park on the Suez canal as part of Egyptian plan to develop the canal zone into an international industrial area. Here's all you need to know about the project

1- The agreement was made in 2014 between President AbdelFattah Al-Sisi and Russian President Vladimir Putin, however the Memoranda of Understanding wasn't signed until February 2016.

2- The Russian industrial zone will be located east of Port Said and will cover an area of 2 million square meters.

3- The industrial park will be established with $4.6 billion worth of investments, this is the preliminary estimation offered by the Russian side.

4- The zone is expected to generate at least $11.6 billion revenues and more than 70,000 jobs.

5- Almost 60 Russian companies are taking part in the project, mostly private companies including GAZ, Gazprom Neft, Kamaz, UAZ, Transmashholding, Tatneft, InterRAO among others.

6- The first stage of the project is due to start in 2018 and cover more than 80 hectares.

7- The project is expected to be finalized and fully functional by 2035.

8- The Industrial zone is planned to offer low taxes for Russian companies that are part of the zone, with reports about 0 sales tax.

9- The project is considered a kick start for further Russian expansion in Africa and the Middle East regions, further strengthening the bond between Egypt and Russia.

10- The Russian zone should be the first of several zones to be established around the Suez Canal, with plans already underway for Chinese and Italian industrial parks.

Image via Shutterstock/Igor Gochev