Part of the signing of a memorandum of understanding to lay the foundation stone for the establishment of a Turkish logistics industrial zone in the Jarjoub economic zone (communication sites)
Cairo
- Turkey joined the list of foreign investors in Egypt a few weeks after Cairo reached a series of agreements with the International Monetary Fund, the World Bank, the European Union, and before them the UAE on a package of loans, aid, and investments worth approximately $60 billion, which returned it to the map of direct and indirect foreign investment.
Last Friday, the Egyptian Ministry of Transport announced the signing of a memorandum of understanding to lay the foundation stone for the establishment of a Turkish industrial and logistics zone in the economic zone of Jarjoub Port in Matrouh Governorate, northwest of the country on the Mediterranean coast.
The project aims to pump more than $7 billion in direct investments in all its stages, and provide more than 20,000 job opportunities, according to a statement by the Egyptian Prime Minister via its Facebook account.
Why Jarjoub Port?
The statement indicated that the project comes within the framework of the Egyptian government’s plan to exploit the port’s strategic location to implement several projects through the alliance to design, construct, manage and operate a commercial port, free and logistical zones, and connect them to the railway network, a multi-purpose cargo terminal, a passenger terminal, a “yacht marina” and an industrial zone.
It is planned that this will contribute to increasing the volume of trade with African countries, establishing a logistical backbone for complementary and value-added industries, storing activities for all types of goods using the huge untapped space behind the port, attracting international investments for all economic sectors, and establishing international tourism centers.
The port of Jargoub, which is located 70 kilometers west of the city of Marsa Matrouh, is one of the new projects that Egypt is implementing in three phases at a total cost of $10 billion over 10 years.
The port enjoys a strategic location, being the closest to the coasts of Europe, linking the continent of Europe to Africa, and is part of the plan to develop the northwestern coast of Egypt.
According to the statement, the starting point for the project is the operation of a multi-purpose terminal (containers, dry bulk, liquid bulk, and general cargo) and a diverse logistics area once the contract is concluded, which is planned to be signed before the end of this year to begin operation in early 2026.
Electrical appliances from Türkiye's exports to Egypt (Al Jazeera)
What is the size of Türkiye's investments in Egypt?
Despite the political rift between Ankara and Cairo, which lasted more than 10 years, trade relations took the opposite direction and grew steadily, and trade exchange between the two countries jumped thanks to the signing of the free trade agreement between them in 2007, to now reach 10 billion dollars, according to Mustafa Denizer, Chairman of the Business Council. Turkish-Egyptian Council of Foreign Economic Relations of Turkey.
Turkish investments in Egypt amount to about $3 billion, providing 70,000 job opportunities directly and about 100,000 jobs indirectly, with a total return of $1.5 billion annually.
The two countries hope that after Turkish President Recep Tayyip Erdogan's visit to Egypt last February, the first in 11 years, at the invitation of his Egyptian counterpart, it will pave the way for raising trade exchange to $15 billion over the next few years.
Egypt hopes to establish a strategic partnership with Turkey, and to receive new Turkish investments in the Egyptian market in various sectors such as the fields of engineering, chemical, food, pharmaceutical, agricultural manufacturing, paper products and packaging, ready-made clothing and textiles, building and construction, paper industries and other sectors, according to the Egyptian Minister of Trade. .
Turkish electrical appliances displayed in a store in Egypt (Al Jazeera)
What is the advantage of Türkiye's investments?
Researcher in political economy, feasibility studies, and development studies, Youssef Mustafa, believes that “Turkey’s investments in Egypt are not new and have extended since 2007, and they are distinct from other investments, as they are concentrated in all fields of industry and trade, and represent added value to the Egyptian economy, and focus on production and export.” It is somewhat far from the real estate investment that the Gulf countries are known for or the purchase of assets.”
Regarding the selection of the Jarjoub area on the Mediterranean coast near Marsa Matrouh and the New City of Hekma, Mustafa explained that the place is strategic and close to Europe and Africa, and is considered a gateway for export and close to the new cities and ports that Egypt is implementing in partnership with others to transform it into a large population attraction area.
The economic expert did not rule out, in his comment to Al Jazeera Net, that Turkish investments would be part of linking and strengthening interests with Egypt at a time when it is going through one of its worst economic crises, and a key to addressing many common issues between the two countries, especially in Libya, the waters of the eastern Mediterranean, and demarcating the maritime borders with Egypt. Growing natural gas discoveries in the region.
After signing a memorandum of understanding to lay the foundation stone for the establishment of a Turkish industrial zone in the Jarjoub economic zone (communication sites)
An unusual partnership
Egypt is currently Turkey's first trading partner in Africa, and Turkey is one of the most important destinations for Egyptian exports and the largest receiving market for them over the past two years.
The volume of trade exchange between the two countries reached $6.6 billion in 2023, compared to $7.8 billion in 2022, a decrease of 15.7%, according to the Central Agency for Public Mobilization and Statistics in Egypt.
Egyptian exports to Turkey recorded $3.8 billion during 2023, compared to $4 billion during 2022, while Egyptian imports from Turkey amounted to $2.8 billion, compared to $3.8 billion during 2022.
The list of goods that Egypt exports to Turkey includes various industries and products, led by fuel, mineral oils and their distillation products, plastics and their products, fertilisers, iron and steel, ready-made clothing, and electrical machines and appliances.
The list of the most important goods that Egypt imports from Turkey includes: electrical machines and appliances, iron and steel, fuel, mineral oils and their distillation products, inorganic chemical products, plastics and their products, paper and paper pulp products.
Economic integration and political alliance
The Turkish economist and member of the Turkish Businessmen Association, Yusuf Katiboglu, expected that "commercial relations between the two countries will witness a qualitative boom during the next few years, especially after the normalization of diplomatic and political relations to the highest level and the exchange of visits and ambassadors."
In his speech to Al Jazeera Net, he described the economic relations between Cairo and Ankara as economic integration, and primarily aims to strengthen and consolidate the historical and strategic relations between the two most important countries in the region, and to become strong partners and allies in the region in light of geopolitical changes.
Oglu stressed that the common interest in the field of economics enhances the opportunities for growth of the two countries’ economies, especially since Turkish investment is an investment in various and different industrial sectors that affect the lives and needs of Egyptians. Just as Egypt is considered Turkey’s gateway to Africa, Turkey is Egypt’s gateway to Europe, and it will be the logistics industrial zone. The new industrial hub will increase Turkish exports to the continents of Africa and Europe, thus contributing to increasing trade exchange.
Source: Al Jazeera