Ahmed Kamel – Egypt Daily News
In a notable development reflecting growing strategic ties between Cairo and Moscow, Russian Deputy Prime Minister Alexei Overchuk confirmed that both countries are pressing ahead with plans to expand cooperation in the field of peaceful nuclear energy, while also making tangible progress on the long-anticipated Russian Industrial Zone (RIZ) in Egypt’s Suez Canal Economic Zone.
Civil Nuclear Energy: Technology Transfer and Local Manufacturing
One of the central pillars of this partnership is the ongoing construction of the El Dabaa Nuclear Power Plant, Egypt’s first civilian nuclear facility. Russia’s state nuclear corporation, Rosatom, is leading the project through its subsidiary Atomstroyexport, which has been tasked with delivering the plant’s four VVER-1200 reactors under a landmark agreement signed in 2015.
Speaking on the sidelines of bilateral meetings, Egyptian Minister of Electricity and Renewable Energy Mahmoud Esmat emphasized Egypt’s ambition to localize nuclear technology and manufacturing, moving beyond simple procurement to active participation in production and future development. The ministry announced in early August that it had initiated steps to manufacture components for the Dabaa plant domestically, signaling a new phase in Egypt’s nuclear program aimed at building local expertise and industrial capacity.
“There are clear presidential directives to accelerate technology transfer and localize the production of electrical systems and nuclear equipment,” said Esmat during a meeting with Alexey Kononenko, Deputy Head of Atomstroyexport. He stressed that Egypt possesses the industrial base and skilled workforce needed to contribute meaningfully to the peaceful use of nuclear energy, especially in power generation.
This emphasis on localization reflects not only a strategic desire for energy independence but also aligns with Egypt’s broader push to modernize its manufacturing base and position itself as a regional hub for advanced technologies.
Russian Industrial Zone: Progress on the Ground
On the economic front, Deputy Prime Minister Overchuk announced that Moscow has selected a Russian operator for its industrial zone project in Egypt, which is set to be a cornerstone of Russian investment in Africa and the Middle East.
“We have generally agreed on the choice of an operating company for the Russian Industrial Zone. It is a group with extensive experience in developing industrial zones within Russia and is capable of attracting resident companies,” Overchuk told reporters.
The announcement comes after months of preparatory work, including the resolution of land allocation issues for the project. In May, Russia and Egypt signed a land lease agreement, formalizing the terms under which Russia will develop and operate the industrial area within the Suez Canal Economic Zone (SCZone).
According to Overchuk, development is already underway, with the focus now shifting to building the necessary infrastructure to support operations and attract Russian manufacturers and investors.
The industrial zone is expected to house Russian manufacturing, logistics, and technology firms, producing goods both for the Egyptian market and for export to Africa, Europe, and the Middle East. It represents a key element of Russia’s strategic effort to expand its economic footprint outside Europe, particularly as it faces growing isolation from Western markets due to the war in Ukraine.
Strategic Dimensions and Mutual Interests
The convergence of interests in nuclear energy and industrial development reflects the deepening strategic relationship between Cairo and Moscow. Both countries see mutual benefit in strengthening their economic and technological cooperation at a time of shifting geopolitical alignments.
For Egypt, the partnership offers a pathway to diversify its energy sources, modernize its economy, and increase high-tech industrial capacity. For Russia, Egypt provides a gateway to African and Arab markets, while also solidifying a key alliance in a region of growing strategic importance.
This comes as Egypt continues to pursue a balanced foreign policy, maintaining strong ties with Western powers while also cultivating robust relations with Russia, China, and regional players.
Looking Ahead
As the El Dabaa project moves into more advanced construction phases and the Russian Industrial Zone takes shape on the ground, both projects are set to become long-term pillars of Egyptian-Russian cooperation. Beyond their immediate economic and technical significance, they also underscore a shared vision for regional development, technological sovereignty, and economic integration one that both sides appear committed to expanding in the years ahead.
