Turkish firms eyeing opportunities in Egypt
ISTANBUL
Turkish companies are exploring investment opportunities in Egypt as the two countries are taking steps to improve strained relations.
Earlier this week, Türkiye and Egypt jointly announced their decision to increase diplomatic representation to the level of ambassadors after 10 years of tension, in a move to accomplish the ongoing normalization process and restore the bilateral ties.
A joint statement by the Turkish and Egyptian foreign ministries declared on July 4 that the two countries will exchange ambassadors.
A delegation of Turkish businesspeople recently traveled to Egypt to hold talks.
The visit was coordinated by the Turkish Exporters’ Assembly (TİM), said Gökhan Turhan from the Istanbul Ferrous and Non-Ferrous Metals Exporters’ Association (İDDMİB).
“The problems we had faced in the Egyptian market in the past years were already easing. We long had problems even obtaining a visa. We did not have such trouble during the visit we paid to Egypt before the Eid al-Adha holiday,” Turhan said.
Members of the Turkish delegation had more than 100 bilateral talks with their counterparts, Turhan said, adding that in terms of forging business ties, those talks were fruitful for both Turkish and Egyptian businesspeople.
Turhan recalled that Egypt offers incentives to lure foreign investors to the country. “Their efforts yield positive results. They are attracting investments from a number of countries, including Türkiye.”
He noted that the minimum wage is around $80 in Egypt, and the government allocates land to potential investments.
“Establishing production facilities in Egypt will help Turkish companies enter the markets in Europe, Africa and the U.S. Those are the markets Turkish companies encounter problems due to additional tax,” Turhan explained. “Egypt is the gate to new markets for Turkish firms.”
He also said that presently bilateral trade volume is well above its potential. “We are expecting Türkiye’s exports to Egypt to increase significantly.”
The recent decision to upgrade the diplomatic representation will definitely boost the trade between the two countries, according to Çetin Tecdelioğlu, the president of İDDMİB.
“We have updated our targets set for Egypt. From now on, we can more easily travel to Egypt and attend trade fairs there,” he said.
Kazım Taycı, the board chair of the Istanbul Cereals Pulses Oil Seeds and Products Exporters’ Association (İHBİR), acknowledged that taxes are high in Egypt and there are problems collecting receivables. “There is a strong trust in Turkish brands. If those problems are resolved, exports to Egypt could increase substantially,” he said.
The bilateral trade volume rose from $4.7 billion in 2014 to $5.2 billion in 2018. Türkiye’s exports to Egypt amounted to $4.6 billion last year, when Türkiye’s total export revenues stood at $254 billion.
In the first five months of 2023, exports to Egypt totaled $1.3 billion, according to data from the Turkish Statistics Institute (TÜİK).
