A Turkish leather company has applied for an 80,000 square meter plot in Leather City, Al-Roubeiki, to establish a LE2 billion ($39.5 million) factory, according to Al-Arabiya. While the company’s identity remains undisclosed, the negotiations are reportedly in an advanced stage, with an official announcement expected soon.
Turkish Investment Surge in Egypt
This development aligns with growing Turkish interest in Egypt, as seen in last month’s meeting between nine Turkish companies and Industry Minister Kamel Al-Wazir to explore investments in textiles, garments, packaging, and home appliances.
Salih Mutlu Şen, Turkey’s ambassador to Egypt, noted that Turkish investments in Egypt are projected to reach $10 billion by 2025, up from $8 billion in 2024.
Egypt remains Turkey’s largest African trading partner, while Turkey ranks as Egypt’s second-largest importer. Bilateral trade volume hit $8.8 billion in 2024, a $1 billion year-on-year increase, according to the Egyptian Cabinet’s Information and Decision Support Centre.
Why Egypt? Cost Advantages & Trade Agreements
Egypt offers key incentives for Turkish businesses, including:
- Lower labor costs: Egyptian wages are one-fifth of those in Turkey.
- Cheaper energy prices: Egyptian energy costs are one-third to half of Turkey’s.
- Trade agreements: Egypt enjoys free-trade pacts with Africa, Europe, and the Arab world, boosting export potential.
Adel Lamei, head of the Egyptian-Turkish Business Council, emphasized that these factors make Egypt an attractive hub for Turkish investors.
Strengthening Trade Ties & Future Outlook
- February 2024: President Erdoğan pledged to increase bilateral trade to $15 billion, with cooperation expanding into energy and defense.
- 2025 Trade Momentum: Four Turkish delegations have already visited Egypt, holding 300+ business meetings.
- Egypt-Turkey Business Delegations: An Egyptian team will visit Turkey soon, while a Turkish trade mission is scheduled for May.
- Trade Exhibitions: Turkish corporate presence in Egyptian trade fairs is steadily rising.
Turkish Investments in Egypt: Key Sectors & Growth
- Industries: Textiles, apparel, chemicals, and leather
- Industrial hubs: Ameria, 10 Ramadan City, Borg Al-Arab, Port Said, 6 October City
- 2024 Business Growth:
- 350 new Turkish companies launched in Egypt, pushing total Turkish investments to $3.5 billion.
- 23% year-on-year surge in non-energy trade.
- January 2025 saw $672,000 in Turkish investments, up 17% from last year.
- Bilateral trade projected to hit $13 billion.
Beyond Trade: Calls for Agricultural Trade Expansion
TOMIAD Chairman Nihat Akıncı urged the inclusion of agricultural products in the 2005 Egypt-Turkey Free Trade Agreement, a move that could further enhance trade cooperation.
Despite past diplomatic tensions, Egypt and Turkey’s economic ties remained strong, with both countries now accelerating their bilateral trade and investment agenda.