Global trade hub seeking Russia partnership – media
The Suez Canal Authority has reportedly signaled interest in closer Cairo-Moscow cooperation
The authority overseeing Egypt’s Suez Canal is seeking to sign a partnership deal with Russia, RIA Novosti has reported. The two countries are already working together on a major industrial project in the area.
Osama Rabie, chairman and managing director of the Suez Canal Authority, told RIA on Monday that Russia currently has no direct partnership with the canal itself – only with the Suez Canal Economic Zone in eastern Port Said.
“We hope for such a [partnership] agreement,” he said when asked about cooperation with Moscow.
In 2018, Russia and Egypt signed a deal to establish a Russian industrial zone on a 5.25 million-square-meter site, to be developed over 13 years. Dubbed ‘Sun City,’ the project will provide Russian manufacturers with access to markets in Egypt, the Middle East, and Africa.
Industries expected to operate in the zone include automotive, pharmaceuticals, oil and gas, mining, and nuclear technology. Egyptian officials say the venture will create 35,000 jobs and attract around $4.6 billion in investment. Businesses will benefit from preferential tax policies.
In May, Egypt and Russia held an intergovernmental commission on trade and cooperation in Moscow, where both sides reaffirmed the importance of the project as a way to boost industrial ties.
READ MORE: Russia set for major investment in Egypt
Egypt was one of four nations – along with Ethiopia, the United Arab Emirates, and Indonesia – that became full BRICS members in 2024. BRICS was originally formed in 2006 as an economic group between Brazil, Russia, India, and China, with South Africa joining four years later. According to Russian President Vladimir Putin, BRICS has already surpassed the Western-led G7 in terms of combined GDP.
The Suez Canal remains a vital artery of global trade, carrying an estimated 12-15% of total cargo, 30% of container traffic, 9% of seaborne oil, and 8% of LNG.