Egypt Country Profile

Egypt, officially the Arab Republic of Egypt, is one of the most strategically important and economically influential countries in Africa and the Middle East. It serves as a bridge between Africa, Asia, and Europe through its geographical location and the Suez Canal—one of the world’s most critical maritime routes. As Africa’s third most populous country, Egypt presents vast opportunities in trade, logistics, manufacturing, and energy.

  • Capital: Cairo

  • Population: ~110 million (2024 est.)

  • Official Language: Arabic (English widely used in business)

  • Currency: Egyptian Pound (EGP)

  • Time Zone: GMT+2

  • Major Cities: Cairo, Alexandria, Giza, Port Said, Suez

Economic Landscape

Egypt is classified as a lower-middle-income economy but has shown strong macroeconomic reforms in recent years. The government has pushed forward large-scale infrastructure projects, investment in energy, and modernization of agriculture and manufacturing.

Key Economic Sectors:

  1. Energy and Natural Resources
    Egypt is a major producer and exporter of natural gas, with large reserves in the Mediterranean (Zohr field). It is also a significant oil producer and aims to become a regional energy hub.

  2. Agriculture
    Agriculture employs a significant portion of the population, focusing on crops like cotton, rice, wheat, citrus, and vegetables. Egypt also exports processed foods, herbs, and medicinal plants.

  3. Tourism
    The Pyramids of Giza, Red Sea resorts, and ancient archaeological sites make Egypt a top destination. Though affected by political instability and global crises, the sector is rebounding.

  4. Manufacturing
    Egypt’s manufacturing base includes textiles, cement, fertilizers, food processing, electronics, and construction materials. The government is actively promoting industrialization through economic zones.

  5. Construction and Real Estate
    Massive housing and infrastructure projects, including the New Administrative Capital, are boosting growth and creating business opportunities.

  6. Finance and Services
    Cairo is a regional financial hub. The financial sector is growing, supported by reforms in banking and fintech.

Trade and Export Profile

Egypt has a diversified trade portfolio, exporting both raw materials and finished products. It is a major player in regional trade within Africa, the Middle East, and Europe.

Top Export Products:

  • Natural gas and petroleum products

  • Gold and raw minerals

  • Cotton and textiles

  • Fertilizers

  • Agricultural products (citrus, onions, potatoes)

  • Pharmaceuticals and medical equipment

  • Processed foods

Top Import Products:

  • Machinery and equipment

  • Grains (especially wheat)

  • Automotive and spare parts

  • Electronics

  • Plastics and chemicals

  • Pharmaceuticals

Major Trade Partners:

  • Exports: Italy, UAE, Turkey, United States, India

  • Imports: China, Russia, Germany, Saudi Arabia, United States

Egypt benefits from trade agreements including the African Continental Free Trade Area (AfCFTA), Common Market for Eastern and Southern Africa (COMESA), and bilateral agreements with the EU, GCC, and United States (QIZ protocol).

Strategic Position – The Suez Canal

The Suez Canal is one of Egypt’s most valuable assets, linking the Red Sea to the Mediterranean Sea and enabling fast shipping between Europe and Asia. It handles about 12% of global trade and generates billions of dollars in transit fees annually.

The Suez Canal Economic Zone (SCZone) has become a focal point for trade and industrial development, offering incentives for manufacturers and logistics firms.

Logistics and Infrastructure

Egypt has made significant investments in transportation and logistics, positioning itself as a hub for African, Middle Eastern, and Mediterranean trade.

Ports:

  1. Port Said – At the northern entrance of the Suez Canal; handles containers, general cargo

  2. Alexandria Port – The country’s main commercial port

  3. Suez Port – Connects the Red Sea to the inland canal network

  4. Damietta Port – Specializes in grains, containers, and chemicals

  5. Ain Sokhna Port – Main port for the SCZone; supports industrial exports

Airports:

  • Cairo International Airport – Largest and busiest in Egypt

  • Borg El Arab Airport (Alexandria) – Growing importance in logistics

  • Sharm El Sheikh and Hurghada – Serve tourism and some commercial flights

Rail and Road Network:

Egypt has Africa’s oldest and largest rail network, currently undergoing modernization. New expressways and ring roads are being built to connect industrial zones and reduce congestion in major cities.

Business Environment

Egypt’s government has introduced several reforms to attract foreign investment, including new investment laws, reduced bureaucracy, and more competitive tax regimes.

Key Investment Zones:

  • Suez Canal Economic Zone (SCZone)

  • 10th of Ramadan City, 6th of October City – Industrial hubs

  • New Administrative Capital – A massive development east of Cairo

Ease of Doing Business:

While challenges remain, Egypt has improved in areas like starting a business, registering property, and access to electricity. The government continues to digitize public services to enhance efficiency.

Investment Incentives

Egypt offers a range of incentives to attract investors:

  • Tax holidays for up to 10 years in specific regions

  • Customs exemptions on machinery and raw materials

  • Free zones with zero tax on exports

  • Fast-track services for strategic industries (logistics, renewable energy, pharmaceuticals, etc.)

  • Investment guarantees under bilateral treaties with over 100 countries

The General Authority for Investment and Free Zones (GAFI) provides investor support, including licensing, legal advice, and dispute resolution.

Trade with Africa

Egypt is one of Africa’s top intra-continental traders. Its exports to other African countries include:

  • Construction materials (cement, ceramics)

  • Pharmaceuticals and medical supplies

  • Food products

  • Consumer goods

  • Electrical appliances

Egypt is highly engaged with COMESA, offering preferential access to 21 member states. It also plays a leadership role in the African Union and in Pan-African infrastructure projects.

Opportunities for Trade and Investment

  1. Agribusiness and Food Processing – Local and export demand for processed food and beverages is growing.

  2. Textile and Apparel – Competitive labor and access to QIZ agreements for duty-free U.S. exports.

  3. Pharmaceuticals and Healthcare – Strong local industry with regional export potential.

  4. Renewable Energy – Solar, wind, and green hydrogen projects are booming.

  5. Logistics and Warehousing – Growing need for regional and last-mile logistics solutions.

  6. Real Estate and Construction – Driven by urban growth and megaprojects.

Challenges and Risk Factors

Despite its many strengths, Egypt poses some risks:

  • Currency volatility and inflation

  • Political sensitivities and bureaucracy

  • Energy price fluctuations

  • Youth unemployment and skill gaps

  • Water scarcity and agricultural limitations

However, government commitment to reform and economic resilience make Egypt a strong long-term bet for traders and investors.

Business Culture Tips

  • Business is formal; titles and hierarchy are respected.

  • Arabic is the official language, but English is widely used in commerce.

  • Relationship building and trust are essential before deals are made.

  • Government contracts and procedures often take time—patience is key.

  • Meetings often begin with general conversation before business topics.

Egypt is not only a large domestic market but also a crucial trade corridor linking Africa with the Middle East and Europe. With world-class infrastructure, competitive production capacity, and a government focused on industrial growth, Egypt offers numerous opportunities for exporters, importers, manufacturers, and service providers.

WeTradeAfrica encourages businesses to explore Egypt as a central node in your Africa trade strategy. Whether you are looking for reliable suppliers, regional distributors, or industrial partnerships, Egypt is a natural starting point.