Egypt to offer India exclusive spot in Suez Canal zone

After his maiden state visit to the United States, Prime Minister Narendra Modi departed for his first visit to Egypt on Saturday. The highlight of his two-day tour is expected to be talks on the Suez Canal Economic Zone (SCZONE), which Egypt has been positioning as an investment prospect for Indian companies. Recently, Egypt announced it was ready to offer India a dedicated cluster.

Why does this story matter?

The Suez Canal, connecting the Mediterranean Sea with the Red Sea and the Indian Ocean, is controlled by Egypt. Out of the 48 lakh barrels of crude oil transported through it every day, five lakh barrels are shipped to India. During his visit to India in January, Egyptian President Abdel Fattah El-Sisi offered full support for establishing India's strong industrial presence in the SCZONE.

SCZONE offers unique opportunities to Indian investors: Chairman

Speaking to Economic Times, SCZONE Chairman Waleid Gamal Eldien on Friday said, "Egypt, which has free trade deals with Africa, Europe, Latin America, and West Asia, offers unique opportunities to the Indian investors to reach out to these markets." "The zone has two dedicated industrial hubs for Russia and one for China, and Egypt is ready to offer India a dedicated hub," he added.

SCZONE signs deal with Indian company on green hydrogen project

On his official visit to India this week, Eldein put efforts to attract Indian investors, especially for potential investment opportunities in diverse areas like renewable energy, green hydrogen, and infrastructure. Notably, the SCZONE signed a framework agreement with India-based energy group ACME on Wednesday to start construction on a planned green hydrogen project in Egypt's Sokhna in early 2024.

Modi working on strengthening ties with Egypt

Indian investments in Egypt reached $3.15 billion last year and are expected to increase by $700 million in the future. Meanwhile, PM Modi has been focused on strengthening ties with Egypt. He even invited the country as a special guest to the G20 Summit during India's presidency. This is also the first official bilateral visit by an Indian prime minister to Egypt since 1997.