Egypt considers necessary to create free trade zone with Eurasian Economic Union - minister

CAIRO, February 1. /TASS/. Egypt considers it necessary to create a free trade zone with the Eurasian Economic Union (EAEU), the country’s Industry and Foreign Trade Minister Tarek Kabil said at the opening of a Russian-Egyptian business forum in Cairo on Monday. "We consider it vitally important for Egypt and Russia to reach a free trade zone agreement including both our country and the Eurasian Economic Union," the minister said. "The agreement will positively influence bilateral trade turnover and open up virtual opportunities for attracting a bigger volume of direct foreign investment in Egypt," he said, adding that the issue will be discussed on February 2 at ministerial meetings with the Russian delegation in Cairo. According to the minister, the volume of investment between the 2 countries does not reflect their potential. "We’re asking the Russian business to invest more in Egyptian market for producing a wider range of many goods, which could be exported to African and Arabic countries. The private sector in both states is doing its best to contribute to the construction of a fruitful economic cooperation based on mutual interests," he said, adding that "the Egyptian-Russian business council has been playing a very important role is maintaining economic and investment relations between the 2 parties." Egypt is keen to become Russia’s investment base in Africa and the Middle East, particularly against the background of the agreement on creation of a Russian industrial zone in the area of the Gulf of Suez, which is going to become an example for investors from all over the world willing to put up capital in Egypt, Tarek Kabil said. "Currently, the Egyptian and the Russian sides are assuming serious and specific steps in creation of joint enterprises in this industrial region in a number of areas," he said, adding that "the issue is about manufacturing of trucks, agricultural and construction equipment, shipbuilding and furniture sectors, pharmaceutical industry, petrochemical, reclamation and energy projects." "The Russian industrial zone has huge potential, meaning a strategic location, for developing trade with other countries, not only with Egypt," the minister said. The volume of foreign investment in Egypt topped $6.4 bln in 2014/2015 financial year while the economic growth rate stood at 4.2% in the period. Currently, the country spends huge resources and its main investment on development of infrastructure. According to Tarek Kabil, Cairo aims at implementation of its key projects within the next 3 years. Read more