Russia leases Egyptian land for 49 years to create industrial zone

Russia has leased a plot of land from Egypt for 49 years to establish the Russian Industrial Zone in the Suez Canal area. The project, implemented under an intergovernmental agreement, has entered an active phase following a business mission involving more than 30 Russian companies. This was reported on the official website of the Ministry of Industry and Trade of Russia.

State Secretary – Deputy Head of the Ministry, Roman Chekushov, praised the readiness of the infrastructure and spoke about new opportunities for investors.

“All the participants of the business mission noted the fully equipped infrastructure and excellent access roads. [...] It should be said that the taxation and customs duty regime is, of course, unique for our Russian residents. It is enshrined in the intergovernmental agreement and cannot be changed for 49 years,” he added.

Priority in the zone will be given to enterprises whose products are most in demand in regional markets. According to Chekushov, the Egyptian side is interested in attracting Russian technologies in the fields of transport engineering, chemical and petrochemical industries, as well as in pharmaceuticals, medical products, and medical equipment.

One of the project’s advantages is its role as a hub for entering vast markets. Chekushov stressed that Egypt is a gateway to Africa, “which opens a duty-free trade regime with all African countries and beyond.”

The Suez Canal Economic Zone includes six seaports, which handle 20 per cent of the world’s container traffic.

Photo: Ministry of Industry and Trade of Russia