Penning Deals to Operate Russian Industrial Zone in Egypt

 Russian President Vladimir Putin (2nd L), his Egyptian counterpart President Abdul Fattah al-Sisi (2nd R) and Russia’s Defense Minister Sergei Shoigu (L) meet onboard a guided missile cruiser at the port of Sochi, August 12, 2014. REUTERS/Alexei Druzhinin/RIA Novosti/Kremlin
Russian President Vladimir Putin (2nd L), his Egyptian counterpart President Abdul Fattah al-Sisi (2nd R) and Russia’s Defense Minister Sergei Shoigu (L) meet onboard a guided missile cruiser at the port of Sochi, August 12, 2014. REUTERS/Alexei Druzhinin/RIA Novosti/Kremlin
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Penning Deals to Operate Russian Industrial Zone in Egypt

 Russian President Vladimir Putin (2nd L), his Egyptian counterpart President Abdul Fattah al-Sisi (2nd R) and Russia’s Defense Minister Sergei Shoigu (L) meet onboard a guided missile cruiser at the port of Sochi, August 12, 2014. REUTERS/Alexei Druzhinin/RIA Novosti/Kremlin
Russian President Vladimir Putin (2nd L), his Egyptian counterpart President Abdul Fattah al-Sisi (2nd R) and Russia’s Defense Minister Sergei Shoigu (L) meet onboard a guided missile cruiser at the port of Sochi, August 12, 2014. REUTERS/Alexei Druzhinin/RIA Novosti/Kremlin

The Ministry of Industry and Trade of the Russian Federation has announced that the first eight firms have penned partnership deals to operate the Russian industrial zone in Egypt.

The step coincides with a time when economic and commercial ties are developing between Russia and Egypt, knowing that Russian President Vladimir Putin visited Cairo in December in 2017 and Egyptian President Abdul Fattah el-Sisi visited Russia in October last year.

Chairman of Egypt's Suez Canal Authority Mohab Mamish signed a memorandum of understanding with Afanasiev Anton, General Director of Economic Zone at Dubna, to cooperate in the field of transforming and exchanging expertise between the two.

Russian Minister of Industry and Trade Denis Manturov said that the first portfolio of eight agreements of intent with interested companies would be signed by Russian Export Center in the Russian industrial zones.

Manturov added that the industrial zone is not only a promising project to develop economic and commercial ties between countries but also a multi-functional station to export Russian industrial products to MENA markets.

The Russian side expects the project of establishing an industrial zone in Egypt to take 13 years, given that the first Russian company will commence its operations in the first phase in 2019. While Russian firms that would operate there will be able to manufacture products of value worth USD3.6 billion per year starting 2026.

The Russian industrial zone is set to be established on more than a 5-million-square meter plot of land in Port Said, with the first phase to cost 190 million dollars.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.