Russian industrial zone in Egypt expected to become operational by 2030 - deputy PM
CAIRO. Sept 15 (Interfax) - The start of operations of the Russian Industrial Zone (RIZ) in the Suez Canal Economic Zone in Egypt is planned for 2030 and possibly earlier, Russian Deputy Prime Minister Alexei Overchuk told journalists.
At the start of this week, a Russian delegation led by Overchuk conducted a presentation of the RIZ for representatives of Russian businesses. According to materials from the official representation of the RIZ in Egypt, a pool of Russian companies intending to locate facilities in the industrial zone will be formed and the first memoranda of intent for building enterprises will be signed by the end of 2025. The years 2026-2029 are designated for the development of project documentation and carrying out construction and installation work in the RIZ. The launch of operations in the RIZ is planned after 2030.
"We hope that it might happen a bit earlier. But the plans we saw today point to 2030, maybe a bit earlier," Overchuk said.
The launch of the RIZ should have a positive impact on the dynamics of trade between Russia and Egypt, he said. "When investors come here, new cooperative chains, production cooperative chains are formed; we hope that goods from Russia will be imported here, Russian equipment will be imported here, and Russian services from Russian companies will also be provided here. Therefore, we expect that the arrival of Russian residents in the Suez Canal zone will give a good impetus to the development of trade between Russia and Egypt."
Trade between Russia and Egypt amounted to over $9 billion in 2024, up almost 32% year-on-year.
Currently, the RIZ is a plot in the northeastern part of the Suez Canal Economic Zone with a total area of 50 hectares, with direct access to the port of Ain Sokhna.
The intergovernmental agreement on the creation of the RIZ in the Suez Canal Economic Zone was signed by Russia and Egypt in 2018. In May 2025, the General Authority of the Suez Canal Economic Zone and the Russian special company created this spring, which will act as the project developer, signed a long-term usufruct agreement for the plot, which fixed the commercial terms for its operation. The document provides in particular for a three-year grace period for leasing land plots within the RIZ without charging fees.
It is assumed that products manufactured in the RIZ (provided that localization conditions of more than 30% are met) will receive the status of "Made in Egypt", which exempts them from customs duties when exported to countries in Africa, the Middle East, Latin America and other countries that have trade agreements with Egypt. Up to 100% of the products manufactured in the RIZ can be sold on the Egyptian market itself.
Residents of the RIZ are also exempt from paying duties on the import of equipment and materials, property tax and value-added tax on the purchase of raw materials and components, and have the right to a 50% profit tax refund over seven years based on project investment. Foreign residents can import production resources and finished products from a non-resident parent company without limitations.
The Russian Industry and Trade Ministry said in 2023 that the budget funding for the creation and development of the RIZ in Egypt until 2026 amounts to 9.5 billion rubles.
