For the First Time Since the Collapse of the Soviet Union: Russia’s “Sun City” to Rise in an Arab State

In a significant step toward strengthening bilateral economic ties, Egyptian Minister of Investment and Foreign Trade Hassan El-Khatib and Russian Minister of Industry and Trade Anton Alikhanov witnessed the signing of the usufruct agreement for the Russian Industrial Zone within the Suez Canal Economic Zone.

This project marks the establishment of the first Russian industrial zone in an Arab country since the dissolution of the Soviet Union. It reflects the shared interests of both nations, as Russia seeks to expand its presence in emerging markets and fulfill its core economic objective of increasing the share of non-primary exports in its foreign trade portfolio.

Talks to establish the Russian Industrial Zone in Egypt began following a 2014 summit between Presidents Vladimir Putin and Abdel Fattah El-Sisi in Sochi, evolving into formal negotiations by August 2017.

Described as a “flagship project of Russian-Egyptian cooperation,” the initiative aims to provide comprehensive infrastructure for Russian companies across various sectors—including automotive, petrochemicals, energy, pharmaceuticals, and heavy construction materials. The zone is strategically positioned as a launchpad for Russian firms to expand into Middle Eastern and African markets, positioning the project as a key pillar of the Suez Canal Economic Zone from the Egyptian perspective.

The Russian Industrial Zone is set to attract investments worth $4.6 billion and will be named “Sun City.” Spanning 2,000 hectares, the zone will be built along Egypt’s Mediterranean coast near the Suez Canal, a vital global trade artery through which approximately 20% of the world’s commerce flows.

Designed with a distinctly Russian character, the city will feature a semi-circular layout divided into two main sections: the eastern side named “Moscow” and the western side “St. Petersburg.” The central area, dubbed “the Urals,” will symbolize Russia’s heartland. The city will also include a recreational zone and a triangular-shaped park, offering leisure opportunities for residents and visitors alike.

Source: RT