In a notable testament to Egypt’s growing economic prominence, Emad Qenawy, head of the Importers Division at the Cairo Chamber of Commerce, revealed that Egypt has secured its position as the second-largest recipient of Foreign Direct Investment (FDI) from the European Union (EU) within the Middle East and North Africa (MENA) region.
Qenawy emphasised the pivotal role of Egypt in maintaining stability within the Middle East and highlighted the potential negative repercussions on Europe from any regional crises. He called for concerted efforts to address challenges and bolster Egyptian-European relations, focusing on implementing structural economic reforms and achieving long-term economic stability.
The Egyptian government has actively promoted a larger volume of investment opportunities for European companies, particularly in the industrial sector. Plans are underway to host a joint Egyptian-European investment conference at the end of June, with the participation of President Abdel Fattah El-Sisi and Ursula von der Leyen, President of the European Commission, underscoring the strengthened political, strategic, and economic ties between Egypt and the EU.
European Union countries have emerged as one of Egypt’s most significant trade partners, accounting for approximately 25% of the total volume of trade exchange. In 2023, the value of trade exchange between Egypt and European Union countries reached $31.2 billion, with Egyptian exports amounting to $11.8 billion and imports standing at $19.4 billion.
The surge in European investment in Egypt has been particularly noteworthy, with FDI inflows from the EU soaring to $8.2 billion during the fiscal year 2022/2023, representing a staggering increase of 156.3% compared to the previous fiscal year. This robust growth underscores the EU’s status as the leading investor in Egypt, with an accumulated investment balance of approximately €38.8 billion, constituting about 39% of the total foreign direct investment in the country, according to data from the European Union website in Egypt.
As Egypt continues to strengthen its economic ties with the European Union, the focus remains on harnessing the potential of this partnership to drive mutual growth and prosperity. However, challenges such as the need for sustained structural reforms and the evolving global economic landscape necessitate proactive strategies to ensure Egyptian-European economic relations’ long-term sustainability and resilience.
