Türkiye, Egypt aim to boost bilateral trade by 50%

ANKARA

Türkiye and Egypt aim to increase their bilateral trade volume by 50%, from $10 billion to $15 billion.

This goal will be a key focus during the Türkiye-Egypt High Level Strategic Cooperation Council meeting on Wednesday, as Turkish President Recep Tayyip Erdogan will host his Egyptian counterpart Abdel Fattah el-Sisi in Ankara.

Discussions between the two leaders will include strengthening economic ties, as well as regional issues such as Israel's actions in Gaza.

The meeting is expected to result in the signing of around 20 agreements in various fields, including defense, energy, tourism, health, education and culture.

Agreements to deepen ties

Trade relations have long been a cornerstone of cooperation between Türkiye and Egypt.

Sisi's visit is expected to further increase Türkiye's investments in Egypt, which currently exceed $3 billion.

In 2022, Turkish exports to Egypt totaled $3 billion, while imports from Egypt were slightly higher at $3.1 billion, bringing the total trade volume to $6.1 billion.

Major Turkish exports to Egypt include machinery, iron, steel, and plastics, while imports from Egypt are plastics, fertilizers, and iron and steel.

Egypt ranks 19th with $294 million in Türkiye's total direct investment stock abroad of $46.5 billion. It ranks 36th with $45 million out of approximately $130 billion in foreign direct investment stock coming into Türkiye from abroad.

Joint projects in the defense sector and expanded cooperation in the energy sector, particularly in liquefied natural gas (LNG), nuclear energy, and renewable energy, are also on the agenda.

Egypt, ‘ideal’ partner for Türkiye

Mustafa Denizer, chairman of the Türkiye-Egypt Business Council of the Foreign Economic Relations Board (DEIK), said Turkish investments in Egypt have increased since 2007 and now employ 100,000 people.

Denizer said Egypt's strategic location and cost advantages in energy and labor make it an ideal partner for Türkiye, potentially serving as its second production base.

Noting that Egypt is one of Türkiye's largest trade partners in North Africa, he said the $15 billion trade target is within reach given the positive momentum in political and economic relations between the two nations.

*Writing by Yasin Gungor