HomeEconomyEgypt-Türkiye ties flourish with major deals, investments: Minister

Egypt-Türkiye ties flourish with major deals, investments: Minister

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Egypt’s commerce relations with Türkiye are “very sturdy and balanced,” reflecting a wholesome financial partnership between the 2 international locations, in response to Egyptian Minister of Investment and Foreign Trade Hassan el-Khatib.

Egypt and Türkiye “have extremely diversified exports, which strengthen their commerce relationship,” el-Khatib mentioned in an interview with Anadolu Agency (AA).

“Türkiye is the primary export vacation spot to Egypt globally and Egypt is one in every of Türkiye’s most important commerce companions in Africa, whereas Türkiye is the highest export vacation spot for Egyptian items,” he added.

El-Khatib landed in Türkiye on Monday to attend the opening session of the fortieth Ministerial Conference for Trade Ministers of the Standing Committee for Economic and Commercial Cooperation of the Organisation of Islamic Cooperation (OIC).

His talks in Türkiye aimed to discover methods to boost commerce and funding relations between Ankara and Cairo.

According to the minister, the bilateral commerce quantity reached $6.9 billion in 2023, with Egypt’s exports at $3.6 billion and imports from Türkiye totaling $3.3 billion.

He mentioned the commerce quantity may attain $8 billion by the year-end.

In September, Egyptian President Abdel Fattah el-Sissi paid a landmark go to to Ankara following a go to by President Recep Tayyip Erdogan to Cairo in February.

During the go to, the 2 leaders signed 17 new agreements to boost bilateral cooperation, particularly in commerce and funding.

They additionally signed a mutual declaration for the primary assembly of the High-level Strategic Cooperation Council between the 2 international locations.

El-Khatib known as the mutual declaration a “turning level towards constructing a brand new chapter for cooperation between Egypt and Türkiye and exploring new paths for cooperation based mostly on mutual advantages and solidarity.”

New industrial parks

El-Khatib mentioned Cairo and Ankara agreed to develop two new industrial parks in Egypt.

“The first venture, positioned within the New Administrative Capital, will span 2.1 million sq. meters and is anticipated to price $120 million. The second venture is positioned in New October City and can be over 2.6 million sq. meters,” he added.

The minister mentioned that each Egypt and Türkiye goal to extend their commerce quantity to $15 billion inside a number of years “by bettering the infrastructure and business surroundings for three way partnership tasks and investments, eliminating any obstacles of commerce alternate and investments.”

“I’m absolutely satisfied and optimistic that the outcomes of this strategic partnership can be witnessed very quickly,” the minister mentioned.

“The figures for commerce quantity funding circulate and tasks are very satisfying and mirror momentum within the mutual relations.”

Key sectors for development

El-Khatib mentioned each Egypt and Türkiye have “superb potential” for development within the fields of chemical compounds, petrochemicals, textiles, attire, automotive, furnishings, constructing supplies, prescription drugs and medical provides.

“There is critical potential for development in bilateral commerce between Egypt and Türkiye, given their sturdy industrial and agricultural capabilities,” he added.

The minister mentioned commerce in providers, together with telecommunications, tourism and development, additionally has “promising” alternatives.

“Additionally, increasing the Free Trade Agreement (FTA) to incorporate a wider vary of agricultural items would considerably improve commerce alternatives,” el-Khatib mentioned.

“Türkiye is at present Egypt’s largest importer, and rising entry to the Turkish marketplace for Egyptian agricultural merchandise may additional enhance competitiveness internationally,” he added.

“In return, Egypt would profit from Turkish agricultural merchandise that assist meet native demand and stabilize costs.”

Regional challenges

El-Khatib pointed to regional instability and disrupted provide chains as vital hurdles to advancing commerce and funding relations.

“The ongoing conflicts, instability, and disrupted provide chains within the area pose dangers to the worldwide financial system, together with each our international locations,” he famous.

Regional pressure has escalated on account of Israel’s ongoing battle on the Gaza Strip, which has killed over 43,400 folks, largely ladies and youngsters, since final 12 months.

The battle has unfold to Lebanon, with Israel launching large airstrikes on the nation, killing greater than 3,000 folks since final 12 months amid cross-border warfare with the Hezbollah group.

The battle has additionally concerned Yemen’s Houthi group, which started to assault business ships within the Red Sea in a present of solidarity with Gaza.

“Despite these challenges, Egypt has efficiently positioned itself as a number one vacation spot for overseas direct funding (FDI),” el-Khatib mentioned.

“In 2023, Egypt was acknowledged as the highest funding vacation spot in Africa for the second consecutive 12 months, capturing 18.6% of Africa’s complete FDI, amounting to $52.6 billion. Egypt ranked thirty second in FDI attraction globally, with internet FDI flows reaching $46.1 billion in 2023/2024.”

Turkish funding in Egypt

El-Khatib mentioned Turkish investments in Egypt reached $3 billion, primarily within the manufacturing and providers sectors, using over 50,000 Egyptians within the textile sector alone.

“The Turkish investments in Egypt are rising quick,” he mentioned.

“With the rise of Turkish investments in Egypt, which contributed considerably to the Egyptian exports globally, and on the similar time, many of the Turkish traders in Egypt import completely different merchandise from Türkiye (uncooked supplies – intermediate commodities). This displays the idea of integration and mutual advantages.”

To help Turkish traders, the Egyptian minister mentioned a specialised unit inside the General Authority for Investment and Free Zones (GAFI), Egypt’s authorities funding arm, can be established, aimed toward “offering personalised help and resolving any challenges they could encounter.”

Joint ventures in Africa

El-Khatib mentioned there may be “extensive room for cooperation” between Egypt and Türkiye in Africa.

“The potential for commerce and funding alternatives is big, particularly after the African Continental Free Trade Area (AfCFTA) entered into power and absolutely carried out,” he mentioned.

“Egypt could possibly be an industrial and logistical hub for Turkish merchandise and commodities to entry African markets. Construction corporations may discover a base floor to work collectively in Africa,” the minister added.

Source: www.dailysabah.com

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