Turkish firms to invest $500m in Egypt amid improved ties

Turkish companies are set to invest $500 million in Egypt in 2023-2024, targeting a trading volume of $20 billion in the long-term, a local newspaper reported.

Turkish investors have significantly increased their investment in Egypt, with 35 companies employing 70,000 Egyptians at an investment of $1.5 billion, Daily Sabah newspaper reported, citing Mustafa Denizer, chairperson of the foreign economic relations board (DEIK) of Turkey’s Egypt Business Council.

Denizer stated that with the increasing energy imports from Egypt, the trade volume reached $9 billion, with the current account surplus transferred to the Egyptian side.

Egypt has duty-free trade agreements with South Africa, European Union countries, the US and South American countries.

“This attracts Turkish investors along with Egypt’s low costs in labour and energy. We see new investors and companies coming to Egypt for market research in recent months,” the official added.

Turkey’s imports reached $5.1 billion from Egypt, with about $2.7 billion spent on energy, the report said.

“Our exports are around $4 billion. The main sectors are chemicals, steel, textile, automotive and food. Our companies investing in Egypt achieve significant growth with the investments they make every year. These investments make up a reference for new companies to come,” he added.

The relations are mending after Turkey’s foreign minister Mevlut Cavusoglu recently visited Egypt, the first visit by a Turkish official to the African nation in 11 years.