Engineering exports account for 10-15 percent of Egypt's total non-oil commodity exports. The Egyptian government has set a broader target of reaching $145 billion in total exports by 2020.

El-Sayad outlined three important factors for this significant growth in the engineering sector.

First, there should be a revamped export support programme to ensure exporters receive payments within three months of export, with payments made in cash rather than through offsets.

Moreover, there should be no deductions from these support payments, as they are considered part of the cost, which can enhance competitive advantage in international markets.

El-Sayad pointed out that the Ministry of Finance deducts 15 percent from the delayed dues under the immediate cash payment initiative.

Second, he stressed the importance of deepening strategic local industries by attracting major foreign investments, highlighting the success in attracting five major home appliance manufacturers over the past two years.

Third, establishing regular shipping routes to East and West Africa is important to leverage agreements such as COMESA.

In the first half of 2024, engineering exports surged by 28.6 percent to $2.6 billion unprecedentedly, compared to $2.020 billion in the first half of 2023.

June 2024 alone saw exports rise by 22.3 percent to $425.8 million, compared to $348.1 million in June 2023.

Key growth sectors
 

The transportation sector led the growth with an increase of 151.3 percent, followed by automotive components at 32.4 percent, cables at 32.2 percent, home appliances at 14.3 percent, electrical and electronic industries at 8.2 percent, and electrical appliances at 2.6 percent.

Major importing countries
 

In Europe, key importing countries include the United Kingdom, Turkey, France, Germany, Georgia, Italy, the Czech Republic, and Spain.

Meanwhile, the main markets in Asia are Saudi Arabia, the UAE, Iraq, Azerbaijan, and Qatar.

Libya, Morocco, Tunisia, Kenya, Ghana, Nigeria, Angola, and the Democratic Republic of Congo are the leading importers in Africa.