As relations between Türkiye and Egypt have entered a reconciliation period, the developments have also positively reflected on bilateral economic ties, with Turkish investors now flocking to the country for business opportunities.
Mustafa Denizer, chairperson of the Foreign Economic Relations Board (DEIK) of Türkiye’s Egypt Business Council, said Turkish investors have significantly increased their investment in Egypt, with 35 companies currently employing 70,000 Egyptians, with an investment totaled at $1.5 billion (TL 28.77 billion).
Denizer said that their investment target for the country was set at $500 million for 2023-2024.
Additionally, they also aim to achieve a trading volume of $20 billion in the long term.
The enhancement of bilateral ties comes as Foreign Minister Mevlüt Çavuşoğlu recently paid an official visit to Egypt, which marked the first visit by a Turkish foreign minister to the country in 11 years.
Although bilateral relations between Türkiye and Egypt have not come to a complete halt, they did deteriorate because of political disagreements following the toppling of the North African country’s first democratically elected president, Mohammed Morsi, in a coup after only a year in office.
Denizer noted that the bilateral trade volume has always remained at the same level, at around $5 billion, while this has also begun to change.
He said that with the increasing energy imports from Egypt, the trade volume has reached $9 billion, with the current account surplus transferred to the Egyptian side.
Explaining that Egypt's current duty-free trade agreements allow Egyptian goods’ free movement to South Africa, European Union countries, America and South American countries, Denizer said: "This attracts Turkish investors along with Egypt's low costs in labor and energy. We see new investors and companies coming to Egypt for market research in recent months.”
Stating that Türkiye imports $5.1 billion in total from Egypt, Denizer said: "About $2.7 billion of this is energy. This is followed by plastics, fertilizers and chemical products. Our exports are around $4 billion. The main sectors are chemicals, steel, textile, automotive and food. Our companies investing in Egypt achieve significant growth with the investments they make every year. These investments make up a reference for new companies to come.”
Following the political turmoil in Egypt after Morsi's ousting, Ankara maintained that a democratically elected president cannot be deposed by a military coup and thus, voiced its criticism of now-President Abdel-Fattah el-Sissi and his backers, including the West and some of Ankara’s rivals in the Gulf region.
The Egyptian government, on the other hand, urged Türkiye not to intervene in an issue that it considers its internal affairs. The dispute led to a deadlock in bilateral relations for many years.
After years of tensions, Türkiye has been working to mend its frayed ties with regional powers, including Egypt, the United Arab Emirates (UAE) and Saudi Arabia.
