Egypt

How is Egypt’s economy structured?

After South Africa, Egypt is Africa’s second most industrialized country. Nearly half of the population lives in urban areas, with a significant share concentrated in the major metropolitan areas of Cairo, Alexandria and Giza.
The key pillars of the Egyptian economy are oil and natural gas exports as well as tourism. Approximately half of Egypt’s GDP is generated by the services sector. In addition to public and private actors, state-influenced structures continue to play an important role in the economy.

What business opportunities does Egypt offer?

With a consumer market of more than 100 million inhabitants and increasingly diversified industries, Egypt offers significant potential for Bavarian companies. Key opportunities lie in the modernization and expansion of infrastructure in the fields of transportation, energy, water and healthcare.

Alongside the gas sector (particularly the development of new gas field), the construction industry and tourism remain major drivers of economic growth. Demand for housing and infrastructure continues to rise, as does the number of international tourists. These sectors are expected to remain important growth areas in the years ahead.

In connection with the planned relocation of government institutions to a new administrative capital, many public services are being digitized. This is creating strong demand for products and services from international IT and communications companies, as well as solutions in the field of artificial intelligence. Thanks to its well-educated and young population, Egypt is also an attractive location for IT and business services.

Additional opportunities exist in the food industry—particularly in food production, processing, and packaging—as well as in vocational and technical education.
The European Union and Egypt have been linked by an Association Agreement since 2004.

What are Egypt’s economic relations with Bavaria and Germany?

Egypt is a key partner for Germany and Bavaria in the Middle East and North Africa region. Economic relations are close, and both sides are committed to further strengthening cooperation. Priority areas include hydrogen, information and communication technologies, smart city solutions, environmental technologies and medical technology.

Bavaria maintains a trade surplus in its economic relations with Egypt. Egypt’s most important export products include natural gas, fertilizers, plastics, agricultural products, textiles and clothing. Exports to Bavaria primarily consist of electrical engineering products, food products, textiles and clothing, as well as various raw materials. In turn, Egypt imports mainly vehicles, electrical engineering products, machinery and chemical products from Bavaria.