Thank you for receiving me so warmly to share a picture of where we stand today in our relationship:

The EU is Egypt’s primary trading partner, accounting for approximately 25% of your total trade in 2024. 

Our bilateral trade in goods has increased nearly fourfold since the Association Agreement entered into force in 2024 and the EU is your top trade partner. Total bilateral trade in goods in 2024 was € 32.5 bn. 

Egypt exports to the EU € 12.6 bn worth of goods (agrifood products, minerals, fertilisers, electrical machinery, plastics, steel and aluminium); 

You export more to us than to any other of your partners in the world! To put it in perspective, you export to the EU almost three times more goods than you export to the US, China, Russia, Brazil and India combined! 

In particular, the agrifood sector continues to be a success story for Egypt and confirms that Egypt is an important partner in agrifood products. In 2024, exports of fruits and vegetables (oranges, strawberries, potatoes, tomatoes) increased substantially (€ 2.3bn) and for the first time the EU has a trade deficit with Egypt in that sector (-€300 million). Considering that the EU has probably the strictest agrifood rules in the world, this shows the important progress that Egypt has done in this sector and is able to meet EU quality standards and phytosanitary requirements. The relaunch of exports of wild fish at the beginning of the year is another recent success.

On the other hand, EU exports to Egypt (€ 19.9 bn in 2024) primarily consist of industrial inputs, machinery, chemicals and pharmaceutical products – these are all items Egypt wants to develop its industry and economy.

And then in services our trade is thriving. In 2023 (latest year for which data are available), trade in services reached €15.1 billion with Egypt enjoying a €2.7 bn surplus (EU imports € 8.9 bn, EU exports € 6.1 bn). Egyptian services focus on transportation and tourism and also increasingly on ICT services, which is a dynamic and upcoming sector reflecting Egypt’s strong human capital and engineering skills. (EU services centre on telecommunications and transport.) 

In terms of investment, we are one of the biggest investors in Egypt. In 2023, our FDI stock was €34.8 bn which is only slightly lower compared to the pre-pandemic era (€ 35.7 bn in 2019) showing that EU investors are here for the long term.  

All is not rosy of course and we have issues like trade barriers that we are working hard to overcome; I am confident we will be making progress. 

So what is the plan? Fully implement the Association Agreement (AA), including increasing Egypt’s competitiveness and business framework. (so let me share a few words on the future of our relationship)

The EU and Egypt signed a Strategic and Comprehensive Partnership (SCP) in March 2024, elevating bilateral relations to a new level and acknowledging a common interest in modernisation of the bilateral trade and investment relations. 

The EU-Egypt Investment Conference held in June 2024, the first deliverable after the adoption of the SCP, was a major step to enhance our cooperation across key areas of mutual interest (e.g. renewable energy, circular economy, green transition). It brought together more than 2,000 enterprises (at least 600 from the EU) to explore investment opportunities in Egypt. During the conference, 35 agreements and MoUs were signed, including 29 worth EUR 49 billion with EU-affiliated companies, and 6 worth EUR 18.7 billion with other alliances.

Moreover, the SCP was underpinned by a financial package of € 7.4 billion – the second largest ever (after Ukraine) and a historic milestone for EU-Egypt relations - showing the strategic importance we attach to Egypt as a pillar of stability in the region. The biggest part of the package, €5 bn macrofinancial assistance aims to, inter alia, facilitate the business environment and competitiveness.

Investment facilitation is a joint top priority. With Egypt we are exploring the modernisation of the bilateral trade and investment relations through a Sustainable Investment Facilitation Agreement (SIFA).  SIFAs provide practical measures to attract FDI, namely by increasing the transparency of investment-related measures and streamlining the day-to-day administrative procedures.  

Competition to attract foreign direct investment is fierce, and concluding a SIFA with the EU will send a powerful signal of confidence to investors and showcase Egypt’s potential as an attractive investment destination.   It would complement all our bilateral efforts to increase investment in Egypt. 

In addition, in cooperation with the Ministry of Planning, we recently launched the €1.8 bn EU-Egypt Investment Guarantees for Development Mechanism, to provide financing solutions to a pipeline of operations supporting Egypt's green transition. By de-risking private investment, especially in clean technologies, renewables, energy efficiency, and water — all strategic areas – further investment will be mobilised.

We have a trade dedicated project with the Ministry of Industry – TIGARA - implemented by UNIDO; this is a €8 million programme supporting capacity building in the administration and SME value chains and clusters to help Egypt capitalise on trade opportunities.  We hope to finalise a €40 million growth support programme (2025-2027) on trade facilitation and support to SME for better integration in local and regional chains.

This year there will be two milestones in our bilateral relationship, with the EU-Egypt Association Committee and a leaders Summit in autumn in Brussels. Next year we’ll have the Association Council.

The voice of business is an important element in bilateral relations. I hope today’s discussion will produce ideas on how we can address challenges and exploit opportunities.