Egypt is quickly becoming a hot-spot for investment opportunities in Africa and the Middle East.
There have been talks since Turkey’s industrial conference in 2017 about the establishment of an Industrial Zone in Egypt by the Turkish-Egyptian Businessmen’s Association (TUMIAD). According to head of TUMIAD and coordinator of Turkish business plans in Egypt, Atilla Ataseved, Turkey will be investing $6 million in this project, which is to be completed as soon as 2019.
An industrial zone - which is an area usually on the outskirts of the city aimed at industrial development - will reportedly create thousands of factories and workshops in Egypt, according to TUMIAD. The setting for the industrial zone was being discussed to take place in the 10th of Ramadan City, Badr Industrial City, or 14th May Industrial City. They are set to be working on industries such as engineering, pharmaceuticals, tourism, health and education, and textiles.
Manufacturing Turkish products in Egypt will not only provide an influx of job opportunities in Egypt, but will also potentially increase dollar revenue, according to the Lens Post.
“We want Egypt to be able to export Turkish brands' products with the statement 'Made in Egypt' stamped on them," said Ataseven, who estimates that the coast of the total investment could reach $5 billion.
After a Free Trade Agreement (FTA) was implemented between Egypt and Turkey in 2007, economic cooperation between the two countries have become more lenient despite political issues.
“Despite the political conflicts between the two countries, economic relationships have never stopped," Ataseven explains to the Lens Post. "Turkish-Egyptian relationships are deep-rooted in geography, history, interests and religion."
However, despite all these talks, there are some conflicts of this establishment between Egypt and Turkey. According to Youm7, the Industrial Development Authority (IDA) claimed that they knew nothing of the subject, although TUMIAD had previously reported that they’ve received correspondence from IDA.
The news follows an agreemement last month between Egyptian and Russian officials that will see Russia pump $7 billion dollars into an industrial zone of its own in the North Coast city of El Dabaa.
Main Image of Gaziantep Industrial Zone, Turkey from JLL.