Egypt-Turkey relations: Extended economic partnership, tremendous investment opportunities

CAIRO - 14 February 2024: The visit of Turkish President Recep Tayyip Erdogan to Egypt gives a new impetus to enhancing economic cooperation and trade exchange between both countries, especially since they are linked with distinguished historical economic relations.

 

According to official Egyptian data, Turkey is the first market for Egyptian exports, and that economic relations between the two countries have witnessed great activity recently at all levels, which has been reflected in the growth of the volume of trade and investment.

 

The latest Egyptian Commercial Representation reports show that Turkish investments are among the most important foreign investments in Egypt, and that Turkish companies are among the largest foreign companies contributing to Egyptian exports, whether to Turkey, the European Union, or the United States.

 

Minister of Trade and Industry Ahmed Samir said, "The recent period has witnessed a great movement and demand from Turkish investors to pump new investments into the Egyptian market, especially in light of the recent boom in bilateral relations between the two countries and the activity of mutual official visits between officials of the two countries."

 

He added that Turkish investments are geographically widespread in Egypt, and are also present at the level of medium and small projects, and investments are in industrial sectors in which Turkish companies excel, which contributed to the transfer of technology, industrial and marketing knowledge to Egypt, and the diversification of investments in various sectors.

 

Secretary General of the Federation of Egyptian Chambers of Commerce, Alaa Ezz, confirmed - in a statement to the Middle East News Agency - that the visit of Turkish President Recep Tayyip Erdogan to Egypt will enhance economic cooperation and trade exchange between the two countries, pointing to the growing political relations that greatly support trade and investment relations.

 

"There are a large number of Turkish companies that have begun to study investment in Egypt, other than those that are currently operating," said Ezz, adding that "they aim is to benefit from free trade agreements and the low cost of labor and shipping costs from Egypt for manufacturing in order to export to Arab countries, Africa, and the United States without customs, especially in the clothing sectors, textiles, engineering and household goods, and petrochemicals, which are labor-intensive goods these companies also aim to re-export to Turkey and the European Union as well.”

 

He continued, "We met recently with dozens of Turkish companies interested in investing in Egypt, as well as importing from Egypt, unlike contracting companies that seek to make alliances with Egyptian companies to work together in Africa and rebuild neighboring countries. It is scheduled that during a scheduled meeting with the President of the Union of Turkish Chambers, we will discuss developing a plan."

 

On February 24, Egypt will host meetings of the Arab-Turkish Chamber to discuss opportunities for tripartite cooperation with funding from Arab countries.

 

Data from the Egyptian Commercial Representation Authority indicate that the volume of trade exchange between the two countries during the year 2023 amounted to about 5.875 billion dollars, as Egyptian commodity exports to Turkey witnessed an increase and recorded 2.934 billion dollars compared to about 2.288 billion dollars during the same period in 2022, an increase of 28%, to become Turkey is the largest recipient of Egyptian exports during 2023 and one of Egypt's most important trade partners.

 

 

Trade between Egypt & Turkey

 

The most prominent Egyptian exports to the Turkish market during the year 2023 included chemical products, fertilizers, building materials, yarn and textiles, engineering and electronic goods, ready-made clothing, and agricultural crops.

 

Merchandise imports from Turkey recorded a significant decline in 2023, reaching $2,941 billion, compared to about $3,573 billion in 2022, a decrease of 17.68%. These positive indicators contributed to the decline in the trade balance deficit between the two countries to $7 million in 2023, compared to about 1,285. Billion dollars during 2022.

 

Turkey plans to establish a Turkish industrial zone in Egypt similar to the existing industrial zone in the Turkish city of Bursa, which specializes in the fields of textiles, cars, aluminum, machinery, equipment and advanced technologies to increase economic cooperation and trade exchange with Egypt.

 

The head of the Suez Canal Economic Zone, Walid Gamal El-Din, had stated that the establishment of a Turkish industrial zone in the Suez Canal Economic Zone is currently being discussed.

Coordination is also underway between the two countries to accelerate the pace of operating the “RORO” shipping line, which will contribute to increasing trade exchange between the two countries.