Investment in Russian econ zone in Egypt seen at $4.6 bln by 2035

YEKATERINBURG, Jul 12 (PRIME) -- Investment in Russia’s industrial economic zone in Egypt’s Port Said will total U.S. $4.6 billion by 2035 and the largest part of the sum will be provided by the private sector, as seen by PRIME in data of the Industry and Trade Ministry on Tuesday.

“According to preliminary calculations, investment in construction of infrastructure of the Russian industrial zone in… Egypt will stand at $4.596 billion by 2035. The largest part of the $4.6 billion sum will be raised from non-budget sources (to put in other words, it will be private investment). The number of jobs will amount to 77,591. The revenue of companies which will operate in the zone from the business will reach $11.6 billion,” the documents read.

In February, Minister Denis Manturov and his Egyptian counterpart Tarek Kabil signed a memorandum to establish a Russian industrial zone in Egypt. The project envisages tax benefits for Russian firms that will operate there.

The industrial zone will be created to localize production of large Russian companies engaged in heavy engineering, production of petrochemicals, power and construction materials, as well as medical companies.

The zone may be launched in December 2018. Moscow and Cairo plan to sign an intergovernmental agreement on the project in February 2017, and Egyptian authorities are expected to approve the implementation scheme in June 2017.

Russian companies, which are interested to operate in the zone, include car producer GAZ Group, truck maker Kamaz, car producer UAZ, oil producers Gazprom Neft and Tatneft, power holding Inter RAO, railway equipment maker Transmashholding and real estate developer Morton.

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