Egypt’s Sisi approves establishment of Russia industrial zone

Egyptian President Abdel Fattah Al-Sisi yesterday issued a presidential decree approving the establishment and operation of a Russian industrial zone in the Suez Canal Economic Zone, local media reported.

Egypt and Russia signed an agreement to establish the industrial zone in May last year.

The zone will be 5.25 square kilometres large, with investments of $6.9 billion, and will be built in three phases over a period of 13 years.

Russian automobile, oil and gas companies are expected to operate in the region.

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The government will provide incentives to Russian investors by providing customs and tax cuts.

The Suez Canal, the shortest route to maritime trade between Europe and Asia, is one of the main sources of foreign currency for a country that has struggled to overcome a crippling dollar shortage since an uprising in 2011 that has caused an exodus of foreign investors and tourists.

Traffic through the waterway linking the Mediterranean and Red Sea has been hit as result of the slowdown in global trade and the decline of oil prices.

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