GAFI Leads Egyptian Delegation at Cairo Forum

Mohamed El-Gawsaky, CEO of Egypt's General Authority for Investment and Free Zones (GAFI), led a high-level Egyptian delegation at the Egypt-Türkiye Business Forum in Cairo this week. The forum brought together over 300 business leaders from both nations. Turkish Minister of Trade Ömer Bolat attended with a delegation of 150 Turkish executives. The event focused on strengthening bilateral trade and investment flows between the two regional powers.

Egyptian officials presented detailed investment opportunities across multiple sectors. These sectors included manufacturing, logistics, renewable energy, and information technology. The Egyptian Investment Ministry reported bilateral trade reached $6.5 billion in 2023. This represents a 12% increase from the previous year. Turkish direct investment in Egypt now totals approximately $2.1 billion across 770 projects.

Egypt's Investment Environment Takes Center Stage

GAFI CEO Mohamed El-Gawsaky emphasized Egypt's commitment to economic reforms during his keynote address. He stated Egypt offers a strong and stable investment environment. This environment is supported by comprehensive economic reforms and clear policies. These policies aim to streamline procedures and reduce costs for businesses. They also enhance transparency and facilitate market access.

Egypt's strategic location provides direct access to European, African, and Middle Eastern markets. The country has implemented 47 regulatory reforms since 2022. These reforms reduced the average business setup time from 14 days to 7 days. The Egyptian government established the Supreme Investment Council in 2023 to coordinate investment policies across ministries.

Why It Matters

This forum matters because Egypt and Türkiye represent two of the Mediterranean region's largest economies. Egypt's GDP reached $476 billion in 2023 according to the International Monetary Fund. Türkiye's economy stands at approximately $1.1 trillion. Strengthening economic ties could create a powerful trade corridor connecting Europe, Africa, and the Middle East.

Egypt needs foreign investment to support its economic stabilization program. The country secured a $3 billion loan from the International Monetary Fund in 2022. It requires additional private sector investment to meet growth targets. Türkiye seeks new export markets amid global economic uncertainties. Turkish companies can leverage Egypt's free trade agreements with the European Union and African nations.

Sector-Specific Opportunities Emerge

The forum highlighted concrete opportunities in several key industries. In manufacturing, Egyptian officials identified automotive components and textiles as priority areas. The Suez Canal Economic Zone offers special incentives for export-oriented manufacturing. Turkish companies like Arçelik and Vestel already operate major appliance manufacturing facilities in Egypt.

Renewable energy presents another significant opportunity. Egypt aims to generate 42% of its electricity from renewable sources by 2035. The country requires approximately $10 billion in investment to meet this target. Turkish energy companies could participate in solar and wind projects across Egypt's desert regions.

Information technology and digital services emerged as a third focus area. Egypt's information technology sector grew 16% in 2023. The country now hosts over 600 technology startups. Turkish technology firms could partner with Egyptian companies to serve regional markets.

What Businesses Should Watch

Businesses should monitor several developments following this forum. First, watch for new bilateral agreements on customs procedures and investment protection. Egypt and Türkiye may sign updated agreements within the next six months. These agreements could reduce trade barriers between the two countries.

Second, track specific investment announcements from major Turkish companies. Companies like Koç Holding, Sabancı Holding, and Turkish Airlines may expand their Egyptian operations. These expansions could involve new factories, logistics centers, or service facilities.

Third, observe how Egyptian regulatory reforms translate into actual business conditions. The Egyptian government plans to implement a single digital window for investment approvals by late 2024. This system should further simplify business establishment procedures. Success would signal improved ease of doing business in Egypt.

Finally, monitor currency stability and inflation trends in both countries. Egypt's inflation rate reached 33% in early 2024 before declining to 28% by mid-year. Türkiye's inflation exceeded 60% in 2023. Stable macroeconomic conditions will determine the pace of investment flows.

The Road Ahead for Egypt-Türkiye Relations

The Egypt-Türkiye Business Forum represents a significant step in economic diplomacy. Both countries have experienced political tensions in recent years. Economic cooperation now serves as a bridge to rebuild broader relations. The forum established working groups in five priority sectors. These groups will meet quarterly to address specific business challenges.

Egypt's investment authorities will host Turkish business delegations for site visits in October 2024. These visits will focus on industrial zones in Alexandria, Port Said, and the Suez Canal region. Turkish investors will receive detailed briefings on incentive packages and regulatory requirements.

The Egyptian Commercial Service reported 78 Turkish companies registered to explore Egyptian investment opportunities in 2024. This represents a 40% increase from 2023 registration numbers. The growing business interest suggests tangible economic outcomes from the forum.

Egypt and Türkiye share complementary economic strengths. Egypt offers market access, competitive labor costs, and strategic location. Türkiye provides manufacturing expertise, technology, and established export networks. Combined, these advantages could create a powerful economic partnership benefiting both nations and the broader region.