business

Egypt’s trade relations with Turkey are “very robust and balanced,” reflecting a healthy economic partnership between the two countries, according to Egyptian Minister of Investment and Foreign Trade Hassan El-Khatib. Egypt and Turkey “have highly diversified exports, which strengthen their trade relationship,” Khatib said in an interview with Anadolu. “Turkey is the first export destination to Egypt globally and Egypt is one of Turkey ’s most significant trade partners in Africa, while Türkiye is the top export destination for Egyptian goods,” he added. Khatib landed in Turkey on Monday to attend the opening session of the 40th Ministerial Conference for Trade Ministers of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation (OIC). His talks in Turkey aimed at exploring ways to enhance trade and investment relations between Ankara and Cairo. According to the minister, the bilateral trade volume reached $6.9 billion in 2023, with Egypt’s exports at $3.6 billion and imports from Turkey totaling $3.3 billion. By the year-end, he said, the trade volume could reach $8 billion. In September, Egyptian President Abdel Fattah al-Sisi paid a landmark visit to Ankara following a visit by Turkish President Recep Tayyip Erdogan to Cairo in February. During the visit, the two leaders signed 17 new agreements to enhance bilateral cooperation, especially in the fields of trade and investment. They also signed a mutual declaration for the first meeting of the High-level Strategic Cooperation Council between the two countries. Khatib called the mutual declaration a “turning point towards building a new chapter for cooperation between Egypt and Turkey , and exploring new paths for cooperation based on mutual benefits and solidarity.” – New industrial parks Khatib said both Cairo and Ankara agreed to develop two new industrial parks in Egypt. “The first project, located in the New Administrative Capital, will span 2.1 million square meters and is expected to cost $120 million. The second project is located in New October City and will be over 2.6 million square meters,” he added. The minister said that both Egypt and Turkey aim to increase their trade volume to $15 billion within a few years “through improving the infrastructure and business environment for joint venture projects and investments, eliminating any obstacles of trade exchange and investments.” “I am fully convinced and optimistic that the outcomes of this strategic partnership will be witnessed very soon,” the minister said. “The figures for trade volume investment flow and projects are very satisfying and reflect momentum in the mutual relations.” – Key sectors for growth Khatib said both Egypt and Turkey have “very good potential” for growth in the fields of chemicals, petrochemicals, textiles, apparel, automotive, furniture, building materials, pharmaceuticals and medical supplies. “There is significant potential for growth in bilateral trade between Egypt and Türkiye, given their strong industrial and agricultural capabilities,” he added. The minister said trade in services, including telecommunications, tourism and construction, also has “promising” opportunities. “Additionally, expanding the Free Trade Agreement (FTA) to include a wider range of agricultural goods would significantly enhance trade opportunities,” Khatib said. “Turkey is currently Egypt’s largest importer, and increasing access to the Turkish market for Egyptian agricultural products could further improve competitiveness internationally,” he added. “In return, Egypt would benefit from Turkish agricultural products that help meet local demand and stabilize prices.” – Regional challenges On obstacles to advancing trade and investment relations, Khatib pointed to regional instability and disrupted supply chains as significant hurdles. “The ongoing conflicts, instability, and disrupted supply chains in the region pose risks to the global economy, including both our countries,” he noted. Regional tension has escalated due to Israel’s ongoing war on the Gaza Strip, which has killed over 43,400 people, mostly women and children, since last year. The conflict has spread to Lebanon with Israel launching massive airstrikes on the country, killing more than 3,000 people since last year amid cross-border warfare with the Hezbollah group. The conflict has also involved Yemen’s Houthi group, which began to attack commercial ships in the Red Sea in a show of solidarity with Gaza. “Despite these challenges, Egypt has successfully positioned itself as a leading destination for foreign direct investment (FDI),” Khatib said. “In 2023, Egypt was recognized as the top investment destination in Africa for the second consecutive year, capturing 18.6% of Africa’s total FDI, amounting to $52.6 billion. Globally, Egypt ranked 32nd in FDI attraction, with net FDI flows reaching $46.1 billion in 2023/2024.” – Turkish investment in Egypt Khatib said Turkish investments in Egypt reached $3 billion, primarily in the manufacturing and services sectors, employing over 50,000 Egyptians in the textile sector alone. “The Turkish investments in Egypt are growing fast,” he said. “With the increase of Turkish investments in Egypt, which contributed significantly to the Egyptian exports globally, and at the same time, most of the Turkish investors in Egypt import different products from Turkey (raw materials – intermediate commodities). This is reflecting the concept of integration and the mutual benefits.” To support Turkish investors, the Egyptian minister said a specialized unit within the General Authority for Investment and Free Zones (GAFI), Egypt’s government investment arm, will be established, aimed at “providing personalized assistance and resolving any challenges they may encounter.” – Joint ventures in Africa Khatib said there is “wide room for cooperation” between Egypt and Turkey in Africa. “The potential for trade and investment opportunities is huge, especially after the African Continental Free Trade Area (AfCFTA) entered into force and fully implemented,” he said. “Egypt could be an industrial and logistical hub for Turkish products and commodities to access African markets. Construction companies could find a base ground to work together in Africa,” the minister added.