Egypt has a significant opportunity to benefit from the current war between the US, Israel, and Iran by increasing its exports to the Gulf countries and European markets, especially as shipping to these destinations has not stopped, Sherif Al-Sayad, chairman of the Engineering Export Council of Egypt (EEC), told Al-Ahram Weekly.
He noted that Egypt is the only manufacturing country in the region with prospects of real and promising growth. Al-Sayad explained that Egypt’s industrial capacity is still not sufficient to cover all the export needs of Gulf and European markets, which leaves ample room for new investments.
Strengthening the presence of Egyptian exports in foreign markets or opening new markets will lead these markets to rely on Egyptian products and gradually they will become more accustomed to them, resulting in a real increase in exports, he added.
He pointed out that higher prices of exported goods do not represent an obstacle to export growth, particularly with the expected global increase in prices due to higher shipping costs.
However, he warned that the main concern is the disruption of raw material imports, most of which come from China, which could hinder the continuation of production. He noted that Egyptian factories’ stock of raw materials does not exceed three months, which could negatively affect production and exports if the US-Israeli-Iranian war continues.
Moreover, he added that not all factories are able to export to Gulf markets because they do not possess the conformity certificates required to enter them.
According to data from the EEC, Saudi Arabia ranks as the top importer of Egyptian engineering exports with a value of around $856 million in 2025, while the UAE comes in fourth place with imports worth around $378 million.
Ahmed Al-Khayat, a member of the Food Export Council, told the Weekly that Gulf markets account for around 60 per cent of the food industry sector’s exports, making growth prospects promising.
But government intervention is needed to take full advantage of the opportunity, especially since demand in Gulf markets is expected to rise as people store goods to secure their needs in case the war continues, he added.
Al-Khayat called for the ministers of transport, industry, and trade to intervene by holding meetings with major maritime shipping companies with a view to reducing additional shipping costs.
He explained that the shipping companies have imposed additional fees of $4,000 per container, and these will increase prices at a time when Egyptian exports are competing with products from other countries.
Al-Khayat said that the winter season, which begins in October and ends in May, represents the best export season for the food industries sector.
He stressed that the government should negotiate with maritime shipping companies to reduce the new fees to around $1,000, for example, to enable Egyptian exports to grow, especially since the food sector does not depend on imported raw materials.
He also pointed to a shortage of refrigerated trucks used to transport exports by land to the Saudi market, making maritime shipping a better option at present.
Ali Eissa, chairman of the Egyptian Businessmen’s Association, agreed. He said current tensions have increased the cost of land transport from $4,000 per truck carrying 25 tons to $10,000.
Despite the higher cost of land transport, the sector also suffers from a severe shortage of trucks, he said.
Eissa said that the agricultural crops sector, particularly perishable vegetables and fruit, faces difficulties in taking advantage of the current situation to increase exports.
He noted that the sector has lost East Asian markets due to the repercussions of the ongoing war, which has affected maritime shipping and halted air travel, depriving exporters of transport options to several markets.
Eissa said that exporters are working to increase shipments to countries such as Serbia to compensate for quantities that were not exported, while part of the production is being directed to the local market, though domestic consumption remains weak.
Regarding the European market, Eissa said supply in Europe currently exceeds demand, placing pressure on prices that may decline amid the surplus and cause additional losses for Egyptian exporters.
He called on the government to support farmers and exporters if the war continues in order to mitigate its negative impacts on the sector.
* A version of this article appears in print in the 12 March, 2026 edition of Al-Ahram Weekly
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