Russia’s industrial zone in Egypt’s Suez Canal to be launched by end of 2020-early 2021
The construction of Russia’s industrial zone in one of the world’s major transportation routes, the Suez Canal area in Egypt, will be finished soon.
That’s according to the head of the Suez Canal Authority, Mohab Mamish, who told TASS the zone will be “launched in late 2020 – beginning of 2021.”
He said factories manufacturing agricultural machinery will be located in the Russian industrial zone, adding that the machinery is in demand not only on the Egyptian market, but also in the markets of other African countries, as well as the Middle East and Europe.
According to the Russian Minister of Industry and Trade, 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 ministry expects that by 2026, resident companies will be able to manufacture production worth US$3.6 billion annually.
According to Russian President Vladimir Putin, around $7 billion worth of investments will be attracted to the zone.
The decision to build a Russian industrial zone in Egypt was agreed in 2014. The industrial park will have a friendlier tax regime for resident Russian firms and is expected to provide tens of thousands of jobs. The tax rate for businesses in the project and personal income tax will be 10 percent. Sales tax will be abolished.
Five years ago, Cairo announced the modernization of the Suez Canal, with a vast range of services, as well as several industrial parks, including Russian, Chinese, and Italian areas.
Source: Russia Today