Russia poured $7 billion into Egypt in 2021 to create the Russian Industrial Zone (RIZ), the nation’s first industrial zone exterior of Russia. Egyptian President Abdel Fattah al-Sisi developed a relationship with Russia in 2014 amid the Crimea disaster and the Ukrainian Revolution. Russia has been investing closely in Egypt ever since and is presently pouring $4.6 billion into Egypt’s Suez Canal zone to create “Solar Metropolis,” an industrial zone overlaying 2,000 hectares.
Round 20% of all world commerce strikes via the Suez Canal. That is extraordinarily strategic for Russian manufacturing and commerce, and in addition explains Egypt’s refusal to assist the West in its mission to escalate the Israel-Palestine battle. Solar Metropolis is anticipated to deliver 35,000 jobs to the Egyptian financial system.
Egypt has grow to be Africa’s main vacation spot for funding. It dethroned South Africa in 2017 to say the title. The United Nations Convention on Commerce and Growth (UNCTAD) acknowledged that Egypt “supported by a big improve in Chinese language funding throughout gentle manufacturing industries and wide-ranging financial reforms, similar to monetary liberalisation, which is principally the institution of upper rates of interest that equate the demand for, and the availability of financial savings.” China’s Overseas Direct Funding (FDI) spiked 75% in 2017, offering Egypt with a big enhance. The UAE, Qatar, and Saudi Arabia have additionally invested closely in Egypt, particularly in actual property and improvement.
There’s nothing that the West can present to Egypt to surpass what Arab and Japanese nations have finished for its financial system. The Egypt-Russia Commerce and Funding Abstract (YTD) 2022 signifies that Moscow and Cairo will proceed to strengthen its relationship. A key to this report is that Russia helps Egypt produce its first nuclear energy plant, financing 85% of the undertaking. El Dabaa Nuclear Energy Plant shall be positioned 320 kilometers from Cairo. However this deal initially started in 2015 when Russia promised to finance the undertaking, and signed preliminary contracts in December 2017. The full undertaking is ready to value $28.7 billion. Egypt will repay Russia the remaining 15% in installments with a reimbursement interval of twenty-two years and an rate of interest of three%.
So principally, the plant will grow to be Russia’s nuclear energy in Africa and among the many Arab world. They’re anticipating completion in 2026 and it’s secure to say that the West goes to do every thing in its energy to forestall this from occurring. Take a look at the map above to see how strategic the positioning of this plant shall be for Russia in not simply Africa and the Arab nations however a stone’s throw away from Europe as nicely.