REC CEO Names Key Benefits for Russian Industrial Zone Residents in Egypt

© REUTERS / Amr Abdallah DalshA general view of the Suez Canal from Al Salam "Peace" bridge on the Ismalia desert road before the opening ceremony of the New Suez Canal, in Egypt
A general view of the Suez Canal from Al Salam Peace bridge on the Ismalia desert road before the opening ceremony of the New Suez Canal, in Egypt - Sputnik International, 1920, 03.12.2021
The establishment of the Russian Industrial Economic Zone near the Suez Canal will open up several competitive advantages for Russian companies operating in the area, according to Veronika Nikishina, chief executive of the Russian Export Centre JSC (part of VEB.RF Group) at Expo 2020 in Dubai.
“The strategically important location of the Russian industrial zone, which is at the crossroads of major logistics routes, makes the delivery of Russian products faster and less costly. Egypt is integrated into trade relations in the region and is well regarded in the Arab world market,” Nikishina said.
She added that residents of the Russian Industrial Zone (RIZ) will also enjoy the opportunity to supply their products to third countries under international trade agreements signed by Egypt with more than 70 countries and regional associations. These include the European Free Trade Association (EFTA), the Greater Arab Free Trade Area (GAFTA) and the Southern Common Market (Mercosur).
This means that anything made within the RIZ territory will fall under these trade agreements, making it easier for Russian products to enter foreign markets.
Furthermore, companies may qualify for the “Made in Egypt” product label, which, in turn, would grant easier access to foreign markets.
“Russia and Egypt have fully aligned interests in cooperating over this. The project we are setting up works on the win-win principle. Both the Russian and Egyptian side - as well as the other countries in the region - benefit because the products will be cheaper and easier to get hold of. This will attract foreign investment to the region, create new jobs, and develop infrastructure in the transport corridor area of the Suez Canal. The launch of the RIZ will create an impetus for developing our trade and economic relations, and we will see a higher quality in the trade turnover of our countries," Nikishina said.
Daniil Algulyan, first deputy chairman of VEB.RF, added: “The RIZ in Egypt is essentially a public-private partnership project. Our countries are jointly helping enterprises to launch projects. At the same time, the RIZ's task is to make it easier to adapt Russian processes to local conditions when entering the markets of the Middle East and North Africa."
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