The Egyptian Cabinet approved on Wednesday an agreement to establish a Russian industrial zone in East Port Said with $7 billion in investments, according to a Cabinet statement.
The zone, negotiations over which started in 2014, is set to be built on a 5.25 million square-meter plot of land over three phases.
The industrial zone is expected to generate 35,000 jobs.
Last October, Suez Canal Authority chairman Mohab Mamish issued a statement saying successful negotiations over the zone were held in the presence of Russian Deputy Minister of Industry and Trade of Russia Georgy Kalamanov in Egypt.
Mamish said work on the zone would start in 2018 and that Russia would act as an industrial developer to attract companies and global investors for two years.
Egypt is working on promoting the Suez Canal Economic Zone to attract international investors and boost job creation and economic growth.