The Suez Canal is controlled by Egypt and accounts for 20% of global container trade. (document)
New Delhi:
Egypt’s announcement that it will offer an exclusive seat to India in the Suez Canal Economic Zone (SCEZ) was at the top of the agenda during Prime Minister Narendra Modi’s visit to the country from June 24-25, this will be Prime Minister Narendra Modi’s first visit. by an Indian Prime Minister since 1997.
Egypt has positioned its Suez Canal area as a top investment prospect for Indian businesses.
As one of the world’s key strategic bottlenecks connecting the Mediterranean Sea with the Red Sea and Indian Ocean, the Suez Canal is controlled by Egypt and accounts for 20% of global container trade.
The Suez Canal is also of considerable importance to India’s trade. Of the total 4.8 million barrels of crude oil per day transported and transported through the canal, 500,000 barrels per day of crude oil are shipped to India.
The development axis of the Suez Canal area, SCZONE, includes several industrial and logistics zones.
SCZONE is part of Egypt’s plan to turn the country into a global trade and logistics hub by linking the Red Sea and the Mediterranean through major industrial and logistics zones.
It is an emerging, independent, 460 km long international trade hub with six seaports strategically located between Africa, the Middle East and Europe.
A delegation led by Suez Canal Economic Zone (SCZONE) President Waleid Gamal Eldien recently held discussions on economic cooperation between India and Egypt, especially potential investment opportunities. capacity in various fields such as renewable energy, green hydrogen and infrastructure.
India was given full support to establish a strong industrial presence in SCZONE during Egyptian President Abdel Fattah El-Sisi’s visit to New Delhi in January.
Sisi then told a group of leading Indian businessmen that the Suez Canal area offers promising opportunities for companies looking to profit from Egypt’s strategic location.
SCZONE recently signed a framework agreement with Indian company ACME to begin construction of a planned green hydrogen project in Sokhna as early as 2024.
Strengthening trade and investment relations
The move comes at a time when India is also considering expanding ties with Egypt, a country that plays an important role in the politics of both the Arab world and Africa.
The Egyptian government said it wanted to welcome Indian investments, especially in the field of green hydrogen production.
Indian private sector companies have carried out important projects in Egypt.
According to SCZONE officials, Indian manufacturers from the electrical, steel, chemical and agricultural equipment industries have expressed interest in setting up projects in Egypt.
While India’s investments in Egypt last year were $3.15 billion, India could invest up to $700 million in the coming years, according to reports.
Why is Egypt important?
With a population of nearly 110 million and its location halfway between Africa and Asia, the country was a country with which India enjoyed a particularly close relationship during the first few decades after our independence. .
Both countries have helped each other at key times over the past two years.
Prime Minister Modi has worked to build stronger ties with Egypt, even inviting it as a special guest at the G20 summit during India’s presidency.
Much of the groundwork for the Prime Minister’s meeting in Cairo was made possible through the back-to-back visits to Cairo by Defense Minister Rajnath Singh and Foreign Minister Dr S Jaishankar last October.
