Egypt is strategically positioning its Suez Canal region as a prime investment prospect for Indian businesses. As part of Prime Minister Narendra Modi‘s maiden visit to Cairo, Egypt will showcase its development axis encompassing industrial and logistical zones.
Prime Minister Modi who is currently on a state visit to the US will be in Egypt on a two days state visit June 24-25 at the invitation of Abdul Fattah el-Sisi, the President of Arab Republic of Egypt.
In New Delhi at a special briefing India’s Foreign Secretary Vinay Kwatra had said that a Ministerial-level delegation led by the Chairperson of the Suez Canal Authority is in India.
Led by Waleid Gamal Eldien, Chairman of the Suez Canal Economic Zone (SCZONE), a delegation is currently in New Delhi discussing potential investment opportunities in sectors like renewable energy, green hydrogen, and infrastructure. This move aligns with Egypt’s plan to transform into a global commercial and logistical center by connecting the Red and Mediterranean seas through mega zones.
The Egyptian government, under President Abdel Fattah El-Sisi, eagerly welcomes Indian investments, particularly in green hydrogen production in Ain Sokhna. Though there is no official government agreement on green hydrogen, Indian private sector companies have already undertaken significant projects in Egypt. It has earlier been reported that around 50 Indian companies have already invested approximately USD 3.15 billion across various sectors of the Egyptian economy, spanning chemicals, energy, textiles, agriculture, retail, and more.
Is investing in the Suez Canal region beneficial to India?
Yes.
Access to Global Trade Routes
The Suez Canal is a vital international maritime route that connects Europe, East and North Africa with Asia. By investing in the Suez Canal region, Indian companies gain proximity to this crucial trade route, enabling them to enhance their connectivity and access to global markets.
Strategic Location
Egypt’s strategic location between the Red and Mediterranean seas offers a unique advantage for trade and commerce. Investing in the Suez Canal region allows Indian companies to establish a presence in a central location, facilitating efficient logistics and trade operations across multiple continents.
Gateway to Africa and the Arab World
Egypt serves as a gateway to both the African and Arab regions. Investing in the Suez Canal region opens opportunities for Indian companies to expand their reach and tap into these growing markets. It enables them to establish partnerships, explore new business avenues, and benefit from the economic potential of these regions.
Infrastructure Development
The Suez Canal region is undergoing significant infrastructure development, including the establishment of industrial and logistical zones. Indian companies investing in infrastructure projects can contribute to and benefit from this development, leveraging their expertise and gaining access to a robust infrastructure network.
Renewable Energy Potential
Egypt has shown a keen interest in renewable energy, including green hydrogen production. Investing in the Suez Canal region provides Indian companies with an opportunity to participate in renewable energy projects and leverage Egypt’s focus on sustainable development. This allows Indian firms to gain expertise in renewable energy technologies and contribute to the global transition towards cleaner energy sources.
Overall, investing in the Suez Canal region provides India with access to key trade routes, new markets, infrastructure development, and opportunities in renewable energy. It strengthens economic ties between India and Egypt while positioning Indian companies for growth and expansion in the global market.