Moscow and Cairo are planning to start negotiations on the practical launch of the Russian Industrial Zone (RIZ) in Egypt, Egyptian Minister of Industry and Trade Nevin Gamia said in an interview with TASS, summarizing the results of a meeting of the joint intergovernmental commission on trade, economic, scientific and technical cooperation (IGC) held in Moscow.
"Negotiations will soon begin between the Egyptian and Russian sides to start practical steps to create an industrial zone," she said. - "We discussed in Moscow with Russian Minister of Industry and Trade Denis Manturov the current situation regarding the creation of the zone, which will open access for their products to many markets through localization of a number of Russian productions.
She reminded that the project of creating the RIZ in Egypt is a strategic step towards joint cooperation. "Our government seeks to expand cooperation in many sectors, including the transfer of modern technologies to the Egyptian industry," the minister noted. - "This grandiose project is a huge step towards strengthening the economic partnership, especially considering that it has an area of about 5.2 million square meters and expected investments of about $7 billion. It will not only benefit the Egyptian economy, but will also turn it into a regional base for Russian investments".
According to Nevin Gamia, Russia and Egypt have huge opportunities for investment cooperation in the construction and modernization of railroads, including the creation of a rail transport control center, as well as in the areas of wagon supply and assembly, shipbuilding, modernization of shipbuilding workshops, production of oil tankers and floating workshops. "And this we are not mentioning other projects in the area of oil field development, as well as cooperation in the banking sector between central banks," she added. - "Egypt is Russia's strategic economic and trade partner and a major industrial and export center in the Middle East and Africa. Tireless work is underway between our governments to create appropriate conditions for the implementation of priority projects for the economies of the two countries."
In addition, the minister said, in Moscow, they discussed the exchange of experience in the field of tourism investment, in addition to the use of Russian experience in the creation and management of diving clubs. In addition, according to her, they discussed the need to "encourage travel agencies to offer travel programs at preferential prices for both countries, as well as the possibility that the Russian side will provide scholarships for training (Egyptians) in the tourism and hospitality industry".
About the Russian Industrial Zone in Egypt
An intergovernmental agreement between Russia and Egypt on the creation of a special zone in eastern Port Said with a simplified tax regime for Russian resident businesses was concluded in 2018. According to the Russian Ministry of Industry and Trade, the full implementation of the project will take about 13 years. The Russian side expects that the resident companies will be able to start production as early as 2022. Russian companies will get lease vacations, preferential rates for energy resources, special preferential tax treatment, as well as a site prepared in advance. Construction of the industrial zone was scheduled to begin in 2020, but because of the new coronavirus pandemic, the deadline has been pushed back. It was planned that in the first two or three years about 50 resident companies would appear in the RIZ. Russian state investments in the development of the primary infrastructure of the RIZ are planned at the level of $190 million, while the total volume of private investments during the project implementation period is estimated at $7 billion.
GSV "Russia - Islamic World"
Based on materials from TASS