Egypt - Hassan El-Khatib, Minister of Investment and Foreign Trade, inaugurated the Egyptian-German Business Forum, attended by Stefan Rouenhoff, Parliamentary State Secretary at Germany’s Federal Ministry for Economic Affairs and Energy, and Jürgen Schulz, Germany’s Ambassador to Egypt.

In his address, El-Khatib said the forum comes amid major global shifts, as the world moves towards resilience, geographical proximity, and trusted partnerships, making strategic industrial cooperation more critical than ever. 

He noted that economic relations between Egypt and Germany are historic and built on trust and real investment, with more than 1,500 German companies currently operating in Egypt and total investments estimated at around $4.9bn.

The minister added that bilateral trade between the two countries reached approximately $5.1bn in 2025 under the Egypt–EU Association Agreement, which provides preferential market access.

El-Khatib said Egypt’s unique strategic location, supported by modern infrastructure, enables it to connect Europe, Africa and the Middle East, allowing German companies to integrate into global supply chains, maintain competitiveness, and serve multiple markets from a single production base.

He noted that Egypt has invested around $550bn over the past decade in infrastructure projects, including roads, ports, logistics corridors, industrial zones, and new cities.

El-Khatib said Egypt has implemented fundamental economic reforms focused on targeting inflation rather than controlling the exchange rate, with inflation declining from levels close to 40% to around 12%. He added that foreign reserves have exceeded $50bn, while remittances from Egyptians abroad rose from about $18bn to nearly $37bn, reinforcing stability and long-term predictability for industrial investment.

He also pointed to the success of the fiscal reform programme and improvements in the business environment, which focus on simplification, certainty, and easing administrative burdens. Tax revenues increased by around 35% — the highest annual growth since 2005 — without imposing additional burdens on companies, alongside a review of fees and non-tax charges to enhance transparency and predictability.

El-Khatib highlighted trade facilitation efforts and cost reductions, noting that trade and logistics costs fell by around 65%, generating direct savings estimated at $1.5bn. He said Egypt recorded its lowest trade deficit since 2010 at $34.2bn, while total trade reached a record $132bn.

He added that Egypt is developing a digital platform offering more than 460 permits, fees, and services covering all stages of company incorporation, licensing, and operations. Preparations are also under way to launch the Egyptian Trade Platform, which will allow investors to access all trade-related information by entering an HS code, improving transparency, efficiency, and reducing time and costs.

El-Khatib said Egypt combines strong cost competitiveness with robust human capital and access to a wide range of global markets through its network of trade agreements, including with the European Union, Africa under the AfCFTA, EFTA countries, the United States, and others.

He highlighted renewable energy as a key pillar of Egypt’s competitiveness, noting its capacity to deploy hundreds of gigawatts of solar and wind power, including large-scale projects in the Western Desert and innovative solutions such as floating solar energy. This positions Egypt as a regional hub for green industrial production, low-carbon exports, and potentially the export of green electricity to Europe and neighbouring markets.

El-Khatib said Egypt is opening broad avenues for cooperation with German companies in strategic sectors, including the automotive industry and components, advanced industrial inputs, energy and renewable energy, green hydrogen, low-carbon exports, and advanced technologies such as electronics and semiconductors.

He added that Egypt is ready to deepen investment partnerships with German companies, noting that the next phase of Egyptian–German relations will focus on joint production, while continuing to engage with investors to improve the investment climate.

For his part, Stefan Rouenhoff said Egypt’s expansion in railway projects and transport networks represents a pivotal step towards building modern and sustainable infrastructure that supports the movement of people and goods nationwide. He noted that these networks enhance domestic connectivity, serve around 90% of society, and open new business opportunities while improving economic efficiency and quality of life.

Rouenhoff added that German companies are showing growing interest in expanding investments in Egypt, driven by extensive infrastructure development and improvements in the business environment. He cited Siemens’ projects in transport and energy as a successful model of industrial partnership and technology transfer.

He said bilateral relations are grounded in a long history of economic, educational, and cultural cooperation, providing a strong foundation for a new phase of partnership. Egypt’s strategic location, he added, enhances its appeal as a regional hub for manufacturing and exports to Asian and African markets.

Rouenhoff said key areas for cooperation include conventional and renewable energy, infrastructure and transport, industry, and technology, supporting the economic interests of both countries and fostering future growth.

On the sidelines of the forum, El-Khatib and Rouenhoff signed the minutes of the seventh meeting of the Egyptian–German Joint Economic Committee.

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