Photo courtesy of Egypt's Ministry of Planning and Economic Development
Egyptian Planning Minister Ahmed Rostom met with Azerbaijani Ambassador to Cairo Elkhan Polukhov to discuss a plan to expand economic and development efforts as well as bilateral relations between the two countries beyond traditional frameworks.
The two countries discussed strengthening bilateral economic ties and exploring new avenues for cooperation in development planning and sustainability, as Cairo moves to diversify its international partnerships and bolster economic resilience against growing geopolitical risks.
Azerbaijan is also looking to benefit from Egypt’s expertise in building smart cities and developing advanced infrastructure to support a green economy, as well as its ability to maintain macroeconomic stability and empower the private sector.
This comes as Azerbaijan is preparing to host the 2026 Annual Meetings of the Islamic Development Bank (IsDB) Group in Baku from 16 to 19 June under the theme: “Regional Integration as a Catalyst for Sustainable Prosperity.” The meetings will include discussions on adopting joint regional and international development projects.
Egypt is the second-largest beneficiary among the IsDB’s partners. Cumulative approvals for the country reached approximately $28.9 billion as of March 2026.
Egypt and the bank also have an annual co-operation programme worth up to $1.5 billion to support food security, energy needs, and essential commodities in Egypt.
Earlier this month, Egyptian Petroleum Minister Karim Badawi met Azerbaijani Energy Minister Parviz Shahbazov during Baku Energy Week to discuss improving oil and gas infrastructure in Egypt, as the country seeks to become a regional hub for trading and supplying energy to neighbouring and European markets.
In a related development, direct cargo flights were launched earlier this year from Cairo to Azerbaijan’s capital, Baku, aiming to facilitate bilateral trade for the business community and investment partners.
Egypt exported around $101.1 million worth of products to Azerbaijan in 2025, while imports reached $4.74 million during the same year, according to financial analytics platform Trading Economics.
Cairo has also been seizing opportunities amid escalating regional tensions to improve its economic relations with other international partners, such as Turkey, the US, and Ireland, most recently, to improve the appeal of its investment climate and restore investor confidence.
The ongoing regional conflicts have caused global inflationary pressures and tighter financial conditions, disrupted supply chains, and raised import costs.
As a result of a decline in exports of 8.2 percent, or nearly $1.1 billion, and a sharp rise in imports of 17.8 percent, or $1.4 billion, Egypt's trade deficit widened by 53.9 percent year-on-year to $15.48 billion in the first quarter of 2026.
For the upcoming fiscal year 2026/2027, which starts on 1 July, Egypt will continue its efforts to narrow the fiscal deficit and reduce public debt.
The overall deficit is projected to drop to 4.9 percent of GDP in FY2026/2027, down from an estimated 6.1 percent in the current fiscal year, which ends on 30 June 2026.
The government projects economic growth of 5.4 percent in FY2026/2027. Egypt’s economy remains resilient, with the Central Bank of Egypt (CBE) keeping its key policy rates unchanged.
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