Like China, India may also get a dedicated industrial zone in Egypt's Suez Canal Economic Zone

Egypt may allot a special area of land in its Suez Canal Economic Zone for industrial units to be set up by companies from India as the Arab Republic seeks more investment from the South Asian nation.

A dedicated industrial estate in the Suez Canal Economic Zone will help companies from India to expand investments in Egypt and use the Arab Republic as a hub to tap the markets, not only in West Asia and North Africa but also in Europe. China already established a 7.34 sq km industrial estate within the zone for its companies to take advantage of the strategic location of Egypt.

A day after Prime Minister Narendra Modi and President Abdel Fattah El-Sisi set a target to raise annual bilateral trade volume from $ 7.26 billion in 2021-22 to $ 12 billion within the next five years, a joint statement issued by both sides noted that the two leaders also agreed to encourage companies from India to invest in Egypt and vice versa.

“Egyptian side considers the possibility of allocating a special area of land for the Indian industries in the Suez Canal Economic Zone and the Indian side can arrange for the master plan,” according to the joint statement issued on Thursday.

Sisi flew from Cairo to New Delhi on Tuesday on an invitation from President Droupadi Murmu to be the chief guest in the Republic Day ceremony. He joined Murmu and Modi to witness the parade on the Kartavya Path here on Thursday.

Indian investment in Egypt at present stands at $ 3.15 billion. The Egyptian companies on the other hand invested $ 37 million in India.

“We look forward to an increase in Indian investments in Egypt in an array of fields in the Suez Canal Economic Zone, particularly after noting the intent of Indian companies operating in Egypt to further boost their presence, and the interest of Indian companies specialized in promising fields to inject their investments in Egypt,” Sisi said while joining Modi to address media-persons in New Delhi on Wednesday.

The Suez Canal Economic Zone is spread over a 461 sq km area and comprises six ports strategically located along one of the world’s main trading routes.

Cairo is keen to turn it into an international commercial hub to connect 1.6 billion consumers across Europe, Asia, Africa and the Gulf and Egypt’s own market of about 90 million people.

Modi and Sisi agreed to strengthen cooperation in renewable energy, particularly green hydrogen and welcomed the recent signing of a Framework Agreement and MoUs between Indian companies and the Egyptian authorities for the establishment of large-scale green hydrogen and green ammonia projects in the Suez Canal Economic Zone. They reiterated the significance of the clean energy transition and agreed to strengthen cooperation in the clean energy sector between the two countries, according to the joint statement issued on Thursday.

The Egyptian President will leave New Delhi and fly back to Cairo on Friday.