Turkish firms pledge to invest $500m in Egypt

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Turkish companies have committed $500 million in new investments in Egypt after a visiting business delegation met the prime minister for the first time in a decade, the Egyptian cabinet said, in the latest sign of a thaw in relations.

Diplomatic relations between Egypt and Turkey were severed after Egyptian President Abdel Fattah Al-Sisi, then army chief, led the 2013 overthrow of the Muslim Brotherhood’s Mohamed Mursi, a close ally of Turkish leader Tayyip Erdogan.

Relations began thawing in 2021, as part of a push by Turkey to ease tensions with several regional powers. Although Egyptian officials have been more cautious on reconciliation, Erdogan and Sisi met and shook hands during the 2022 World Cup in Qatar.

“Regardless of any previous political disagreements, we have always been keen to maintain the relations between our peoples and our close economic and commercial cooperation,” Egyptian Prime Minister Mostafa Madbouly said in a cabinet statement released this week.

Trade ties between Turkey and Egypt have continued despite the diplomatic freeze, but both countries have recently been looking to bolster regional financial ties to help their ailing economies.

The businesses visiting Egypt, some of which already have operations there, represent industrial development, textiles, clothes manufacturing, electronics, and medical supplies, the statement said. Turkish investments in Egypt total $2 billion, it added.

Sisi spoke by phone to Erdogan last week offering condolences and support after the deadly earthquake that struck Turkey this month.

Egypt also sent five military planes to Syria and Turkey with medicines and medical supplies, the ministry of defence said on Friday.