Egypt, Germany tout deeper economic ties at business forum

Updated 2/9/2026 12:09:00 PM

Arab Finance: Minister of Investment and Foreign Trade Hassan El-Khatib opened the Egyptian-German Business Forum, highlighting opportunities to deepen investment and trade ties between the two countries amid shifting global supply chains, as per a statement.

Speaking at the forum, El-Khatib said the world was moving toward greater resilience, near-shoring and trusted partnerships, making strategic industrial cooperation more important than ever.

The forum was 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.

El-Khatib said economic relations between Egypt and Germany were longstanding and built on trust, noting that more than 1,500 German companies operate in Egypt with investments of about $4.9 billion.

Bilateral trade reached about $5.1 billion in 2025 under the Egypt-EU Partnership Agreement, which provides preferential market access, he said.

The minister said Egypt had invested around $550 billion over the past decade in infrastructure projects, including roads, ports, logistics corridors, industrial zones, and new cities.

He also added that Egypt had implemented major economic reforms, shifting toward inflation targeting rather than exchange-rate controls, as inflation fell from nearly 40% to about 12%, while foreign reserves exceeded $50 billion.

Meanwhile, remittances from Egyptians abroad have risen to about $37 billion from roughly $18 billion, improving long-term investment stability, he noted.

Moreover, El-Khatib said fiscal reforms and efforts to improve the business environment had lifted tax revenues by about 35%, the highest annual increase since 2005.

Trade facilitation measures have reduced trade and logistics costs by about 65%, generating direct savings of around $1.5 billion, he said. Egypt recorded its lowest trade deficit since 2010 at $34.2 billion, while total trade hit a record $132 billion.

Furthermore, the minister said Egypt prepares to launch a digital platform that offers more than 460 permits, fees, and services covering all stages of company establishment, licensing, and operations.

A separate Egyptian trade platform is also set to be launched, allowing investors to access all trade information using an HS code, aiming to boost transparency and cut time and costs.

El-Khatib stated that Egypt seeks broader cooperation with German companies in strategic sectors. These sectors cover automotive manufacturing and components, advanced industrial inputs, energy and renewables, green hydrogen, low-carbon exports, and advanced technologies such as electronics and semiconductors.