The Egypt-US strategic partnership: A vision for shared prosperity

Sameh Aboul-Enein
Thursday 16 Oct 2025

Egypt offers a strategic alliance, a young and dynamic population, a stable regional base, and an ambitious vision for inclusive and sustainable growth as Egypt and the US deepen their strategic partnership, writes Sameh Abul-Enein

 

In an era marked by geopolitical upheaval and global realignments, the strategic relationship between Egypt and the United States endures as a cornerstone of regional stability and a model of multidimensional cooperation. This partnership is based on shared interests and mutual respect that has matured over decades into a strategic alliance that encompasses defence, development, trade, and diplomacy.

Egypt has long been a regional anchor of stability in a neighbourhood afflicted by conflict. Whether mediating in Gaza, facilitating ceasefires in Sudan, or combating irregular migration, Egypt’s role remains indispensable to both Arab and global security. Our security coordination with the United States reflects a joint commitment to combating terrorism, safeguarding regional maritime routes, and promoting peaceful solutions to entrenched conflicts.

The 7 October crisis and the escalating humanitarian tragedy in Gaza have made Egypt’s mediation more vital than ever. Egypt’s initiative for a ceasefire, humanitarian access, and post-conflict reconstruction in Gaza that is backed by the Arab League, Organisation of Islamic Cooperation (OIC), and the European Union underscores our principled stance on the two-state solution. Our position is clear: sustainable peace can only be achieved through justice for the Palestinian people.

These Egyptian mediation efforts culminated in hosting the Gaza Peace Summit in Sharm El Sheikh on Monday. The summit followed the agreement to end the war and launch the first phase of the Gaza peace plan, marking the end of all hostilities. It brought together key international partners, led by the United States, to discuss the future of Gaza, its governance, security, and humanitarian needs. Egypt’s leadership in organising this summit reflects its steady commitment to peace and stability in the region, and it shows once again the important role of the Egypt–US partnership in turning diplomacy into real progress on the ground.

At the same time, Egypt continues to play a stabilising role in the Red Sea, where recent tensions have threatened global shipping. We advocate for inclusive regional mechanisms involving Arab and African states. Our strategic stability is also affected by the war in Sudan, where Egypt is leading efforts to provide humanitarian aid and promote a ceasefire.

Under the leadership of President Abdel-Fattah Al-Sisi, Egypt is undergoing a far-reaching economic transformation rooted in structural reform, private-sector empowerment, and global integration. At the heart of this transformation lies a national consensus: the private sector must be the engine of growth. 

Through the State Ownership Policy Document, Egypt is clearly delineating the role of the state, where we can see a shift from operator to regulator, while empowering private capital to lead in sectors like energy, infrastructure, ICT, and logistics. Over the past year alone, private investment has surpassed public investment for the first time in decades, reflecting this paradigm shift.

We are not merely opening the door to investments; at the same time, we are redesigning the entire system. We have seen initiatives include steps towards regulatory simplification, tax reform, digitisation, and the “golden licence,” and all these efforts are allowing investors to enter the Egyptian market with unprecedented ease. In priority sectors, incentives are clear, procedures are fast-tracked, and opportunities are abundant.

Egypt’s strategic location at the nexus of Europe, Asia, and Africa gives the country a natural advantage to be a logistical and manufacturing hub. The Suez Canal remains one of the world’s most vital routes for global trade, handling 12 per cent of global shipping traffic. Now, with the Sokhna-Dekheila Axis, expanded ports, and high-speed railways, we are not only enhancing connectivity but redefining trade routes.

Through free trade agreements covering over 70 countries, including the African Continental Free Trade Area (AfCFTA), the Common Market for Eastern and Southern Africa (COMESA), and qualifying industrial zones (QIZ), Egypt provides investors with tariff-free access to over 1.3 billion consumers. American firms operating in Egypt are not confined to one market but are rather plugged into a vast, integrated trading network.

Furthermore, Egypt has embraced the future through its commitment to the green transition. With a target of 42 per cent renewable energy by 2030 and landmark projects like the Benban Solar Park, the country has positioned itself as a regional clean energy powerhouse. 

The NWFE (Nexus of Water, Food, and Energy) Platform, launched under Egypt’s UN COP27 presidency, translates climate commitments into investable, high-impact projects. This green pivot is also not only about sustainability but rather about smart economics. The shift towards renewable energy, green hydrogen, and sustainable industrial zones opens new markets and reduces long-term operating costs, making Egypt more competitive globally.

This green momentum is paralleled by equally ambitious investments in Egypt’s human capital. Egypt’s greatest asset has always been its people, with a highly competitive, skilled workforce that exceeds 31 million. Educational reforms, expanded vocational training, and improved healthcare are building the foundations for a modern, innovation-driven economy. At the same time, digitisation is accelerating with national strategies for AI, fintech, and smart cities already underway. 

Mega projects like the New Administrative Capital and innovation clusters like the Smart Village are becoming a magnet for technology and entrepreneurship.

Moreover, the recent breakthroughs in the cancellation of restrictive standards on US automobile imports and the exemption of US dairy products from halal certification demonstrate Egypt’s commitment to resolving investor concerns and enhancing trade with the United States. At the same time, the Ministry of Foreign Affairs is actively engaged in economic diplomacy, amplifying this message worldwide. Whether through participation in global forums, engagement with the diaspora, or direct investor outreach, we are ensuring that Egypt’s economic narrative is heard, understood, and trusted.

To our American partners Egypt offers more than just market access. The country offers a strategic alliance, a young and dynamic population, a stable regional base, and an ambitious vision for inclusive and sustainable growth. Let us build on our decades of cooperation and seize this moment to deepen our partnership. Whether in clean energy, digital transformation, food security, or regional logistics, the time to act is now. Together, we can turn this moment into a movement towards prosperity, stability, and most importantly shared success.

The September 2024 meeting of the US-Egypt Joint Economic Commission (JEC) in Washington was a major step forward in strengthening economic ties. It helped restart serious discussions on trade and investment, tackled key issues facing businesses, and opened new areas for cooperation in sectors like energy, agriculture, infrastructure, and technology. 

The momentum continued with the Egypt-US Investment Forum in Cairo in May 2025, which brought together top business leaders, investors, and senior officials. The forum highlighted Egypt’s economic reforms and investment opportunities. These two events set a strong foundation for business-to-business cooperation, making it easier for corporate America to connect with Egypt’s growing private sector.


* The writer is a former assistant foreign minister.

* A version of this article appears in print in the 16 October, 2025 edition of Al-Ahram Weekly

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