Egypt and Turkey have agreed to boost bilateral trade to $15 billion over the next few years, up from the present $9 billion. The announcement was made during Turkish President Recep Tayyip Erdogan’s early February visit to Cairo.
Economic cooperation featured as prominently as political issues in the talks between the two sides.
The visit of the Turkish delegation included the signing of a memorandum of understanding (MoU) to bolster commercial relations and joint ventures between the Union of Egyptian Chambers of Commerce and its Turkish counterparts.
The MoU is also meant to assist in exchanging expertise and organising shared exhibitions and events.
According to official statements from both sides, the MoU covers proposals for joint project financing, support for investment in goods and services, technology transfer, and workforce training.
During the Turkish visit, a meeting of the Egyptian-Turkish Business Forum saw participation from business leaders from both countries.
The discussions focused on investment opportunities and cooperation across a range of industries, with particular emphasis placed on joint efforts in strategic sectors such as mining, transport and automotive manufacturing, alongside manufacturing industries, as part of efforts to expand trade and prioritise higher value-added activities.
Ahmed Al-Wakil, chief executive of the Federation of Egyptian Chambers of Commerce, told the media that practical cooperation was under way to advance trade and investment flows between the two sides.
This includes studying a joint action plan to develop bilateral commercial and investment ties and expand collaboration in contracting and infrastructure projects in Africa, with the aim of reaching a $15 billion trade target.
Al-Wakil said that the Federation is an active partner for the private sector in implementing agreements and widening cooperation with Turkey, particularly through joint forums and projects, hosting business delegations, and attracting investment to industrial zones.
Besides trade, Turkish companies also enjoy a strong presence in the Egyptian market through existing firms and new ventures. Total Turkish investments exceed $3 billion across 1,700 companies operating in Egypt.
This reflects the continuous expansion in recent years and a diversification of targeted sectors, according to Egypt’s State Information Service and the Central Agency for Public Mobilisation and Statistics (CAPMAS).
Turkish companies operate in a wide range of industrial and commercial activities in Egypt, including textiles and ready-made garments and the chemicals, glass, and household-appliance industries. There are expansion plans to establish production and export lines from Egypt to other markets.
Despite the present global economic challenges, Turkish investments in different Egyptian sectors increased by $175.1 million in fiscal year 2024-2025, according to CAPMAS.
Figures from business councils from both countries point to expectations of fresh investments exceeding $500 million this year in spinning and weaving and other industrial and commercial activities.
Meanwhile, Turkey continues to establish projects in strategic locations including the Suez Canal Economic Zone and major industrial cities.
Adel El-Lamei, a member of the Egyptian-Turkish Business Council, said the $15 billion target is both reasonable and achievable in the near term, based on the free-trade agreement between the two countries whose provisions have been almost fully implemented.
He added that a more challenging aspect would be increasing the volume of direct investments between the two sides. Total Turkish investments in Egypt had reached $4 billion by 2025, he noted, and they are expected to rise to $5 billion within a year or two, with the focus being on textiles, ready-made garments, and the engineering industries, particularly household appliances.
Egypt offers lucrative opportunities for Turkish investment thanks to its location, infrastructure, energy availability and large labour pool at comparatively low costs, he said.
Energy in Egypt costs 25 per cent less than in Turkey, while labour costs amount to 30 per cent of their Turkish counterpart. Egypt also has a strong and interconnected infrastructure network and advanced digital systems.
El-Lamei added that Turkish investments remain open to partnerships across a wide range of activities beyond clothing and electrical appliances, noting that while these sectors have proved successful future investments will not be confined solely to further expansion in the same fields.
CAPMAS reported that trade between the two countries reached $6.8 billion in 2025, up from $6.6 billion in 2024. Over the same period, Egypt’s exports to Turkey amounted to $3.2 billion, while imports from Turkey stood at $3.6 billion.
Egypt’s exports to Turkey include ready-made garments valued at $389 million, plastics and plastic products worth $317 million, electrical machinery and equipment at $301 million, iron and steel at $290 million, and fertilisers at $255 million, besides other industrial and agricultural commodities.
In 2025, Turkish exports to Egypt included mainly fuels, mineral oils, and distillation products worth $729 million, electrical machinery and appliances valued at $602 million, iron and steel and related products at $514 million, cotton and textiles at $259 million, and cars and tractors at $155 million.
Sherif Al-Sayyad, head of the Export Council for Engineering Industries, said Egypt attracts Turkish investment for a variety of reasons, foremost among them being the country’s network of trade agreements with 57 other countries, positioning it as a prime gateway to the European and African markets.
He explained that this approach fits with Turkey’s export‑support strategies, which now go beyond simply increasing the volume of its goods sold abroad.
The focus is also on exporting Turkish brands themselves, he said, moving past the traditional “made in Turkey” label to building lasting connections between consumers and Turkish brands across different markets.
He noted that Turkey is currently implementing a programme akin to Egypt’s export-rebate scheme but geared towards promoting Turkish brands by reimbursing part of the cost of renting exhibition space at international fairs held outside Turkey and contributing to a portion of brand-marketing expenses.
Al-Sayyad added that based on the council’s monitoring of such strategies in Turkey and China in recent years, it has begun coordinating with the Ministry of Investment to establish guiding principles for attracting specific types of investment, including labour-intensive sectors such as textiles and ready-made garments, to help develop feeder and complementary industries in Egypt.
Turkey has relocated one of its largest household-appliance factories to Egypt, he said, yet the plant still imports 50 per cent of its components.
Efforts are therefore underway to localise production of the inputs required by this industry in order to boost growth, add value, and generate more jobs in Egypt. This will help reduce the imported components from 50 per cent to 30 per cent by 2030.
* A version of this article appears in print in the 12 February, 2026 edition of Al-Ahram Weekly
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