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Egypt's New Suez Canal to give China more investment chances: ex-envoy

(Xinhua) Updated: 2015-07-27 10:00

CAIRO - "The new Suez Canal area will give the Chinese side more opportunities to invest in Egypt and other countries," Egypt's former ambassador to China Mahmoud Allam told Xinhua in a recent interview.

"Egypt decides to establish a industrial city and logistics area in the Suez Canal zone, which will attract many investors and countries, especially China," the ex-diplomat said.

The 72 km long New Suez Canal, an alternative to the original 190 km long waterway, is expected to transform a 76,000 square km area on both banks into an international logistics, commercial and industrial hub. It is one of the key national projects that are at the heart of Egyptian government's efforts to revive the country's sluggish economy.

The one-year construction work involves a 35 km of dry digging and another 37 km of expansion and deep digging of the old one.

"The investment in the Suez Canal area will give the Chinese side the opportunity to invest in more countries... Egypt's geographical location is very important, so near to the European, Arab and African markets," Mahmoud Allam said.

Regarding to the China-Egypt cooperation, the former envoy stressed that the new project, which will be inaugurated on August 6, will help boost the bilateral cooperation.

Mahmoud Allam told Xinhua that many Chinese companies have started to invest in northwest Suez area nine years ago, and growing Chinese investments are flowing to Egypt after China and Egypt decided to elevate their bilateral ties to the level of "comprehensive strategic partnership" during President Sisi's official visit to Beijing last year.

Meanwhile, Mahmoud Allam hails China's Belt and Road initiative, saying it's of great importance to develop Egypt's industries and widen trade markets.

"The initiative will connect all countries together in the aspects of opening each country to the international markets," Mahmoud Allam told Xinhua.

Proposed by Chinese President Xi Jinping in 2013, the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, known as the Belt and Road Initiative, aims at reviving the ancient trade route between Asia and Europe.

The network threads through over 60 countries and regions, with a total population of 4.4 billion.

"The initiative has now begun a practical implementation, I can see that the Chinese government has cost a lot of money to support the infrastructure projects which carried out in this area," Allam said.

"We hope that both sides win... we also hope that China will help develop Egypt's industries," the former official added.

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