The first phase of a Russian-Egyptian-UAE investment fund will be seeded with $500 million following an agreement between the parties, it has been reported.
The initial financing will be used to start construction of a two million square metre Russian industrial zone at Egypt’s Port Said, local media said.
The UAE and Egyptian governments signed a deal in February with the Russian Direct Investment Fund, a fund set up by the Russian government with an initial $10 billion in 2011 to make equity investments in high growth sectors of the Russian economy.
The RDIF has secured more than $25 billion through long term partnerships with global investors, 90 percent of whom are from Asia and the Middle East including UAE port operator DP World.
Under the February agreement, the three countries agreed to launch a fund with the participation of Abu Dhabi Investment Fund and two Egyptian banks – the National Bank of Egypt and Banque Misr.
The fund was intended to finance large-scale infrastructure projects in Egypt, such as logistics centres in the Suez Canal development zone, subways and railway lines, it was reported at the time.
This week, local Egyptian newspaper Amwal Al Ghad revealed that the size of the fund had been determined under a subsequent agreement by the countries.
The fund is to be seeded with an initial $500 million, it said, according to Zawya.
Egyptian trade and industry minister Tarek Qabil was quoted as saying the first phase would include construction of a Russian industrial zone on two million sq m of land at East Port Said.
The RDIF has been contacted for comment.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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