Egypt’s trade relations with Türkiye remain “robust and balanced,” reflecting a healthy economic partnership between the two nations, according to Egypt’s Minister of Investment and Foreign Trade Hassan El-Khatib.

“Egypt and Türkiye have highly diversified exports that strengthen their trade relationship,” El-Khatib said in an interview with Anadolu Agency.

He noted that Türkiye is the primary export destination for Egyptian goods globally, while Egypt stands as one of Türkiye’s top trade partners and export destination in Africa.

El-Khatib arrived in Türkiye on Monday to attend the opening session of the 40th Ministerial Conference for Trade Ministers of the Organization of Islamic Cooperation (OIC) Standing Committee.

His visit aims to explore ways to further enhance trade and investment relations between Ankara and Cairo.

In 2023, the bilateral trade volume reached $6.9 billion, with Egypt’s exports at $3.6 billion and imports from Türkiye at $3.3 billion, according to the minister. El-Khatib believes the trade volume could reach $8 billion by year-end.

In September, Egyptian President Abdel Fattah el 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.

The two leaders also signed a mutual declaration, establishing the first High-Level Strategic Cooperation Council between Egypt and Türkiye.

El-Khatib described the council as a “turning point toward a new chapter of cooperation, based on mutual benefit and solidarity.”

Industrial parks initiatives

El-Khatib announced that Cairo and Ankara have 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 two countries aim to increase their trade volume to $15 billion within a few years by improving infrastructure, fostering joint ventures, and eliminating obstacles to trade and investment.

“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,” he added.

Key sectors for growth

El-Khatib highlighted chemicals, petrochemicals, textiles, apparel, automotive, furniture, building materials, pharmaceuticals and medical supplies as promising growth areas for Egypt-Türkiye trade.

“There is significant potential for growth in bilateral trade between Egypt and Türkiye, given their strong industrial and agricultural capabilities,” he added.

He also emphasized “promising” opportunities in services such as telecommunications, tourism, and construction.

“Additionally, expanding the Free Trade Agreement (FTA) to include a wider range of agricultural goods would significantly enhance trade opportunities,” El-Khatib said.

“Increasing access to the Turkish market for Egyptian agricultural products could boost international competitiveness,” he said, noting that Türkiye is Egypt’s largest importer.

“In return, Egypt would benefit from Turkish agricultural products that help meet local demand and stabilise prices,” he noted.

Regional challenges

El-Khatib pointed out that regional instability and disrupted supply chains pose challenges to advancing trade and investment.

“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 Gaza, which has killed over 43,400 people, mostly women and children, since last year.

The conflict has spread to Lebanon with Israel launching massive air strikes 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),” El-Khatib said.

“In 2023, Egypt was recognised as the top investment destination in Africa for the second consecutive year, capturing 18.6 percent 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,” he added.

Turkish investment in Egypt

Turkish investments in Egypt have grown to $3 billion, primarily in manufacturing and services, creating over 50,000 jobs in the textile sector alone.

“The Turkish investments in Egypt are growing fast,” he said.

To further support Turkish investors, El-Khatib announced the establishment of a specialised unit within Egypt’s General Authority for Investment and Free Zones (GAFI) to offer assistance and resolve challenges

Joint ventures in Africa

El-Khatib also sees a “wide room for cooperation” between Egypt and Türkiye to collaborate 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.