Turkish Companies Commit to Investing in Egypt as Diplomatic Relations Improve

7 days ago
Turkish Companies Commit to Investing in Egypt as Diplomatic Relations Improve

The Egyptian cabinet announced that Turkish companies have pledged $500 million in new investments in Egypt following a meeting with the prime minister, marking the first encounter between the two parties in ten years. This development serves as the most recent indicator of improving relations between the two nations.

The diplomatic ties between Egypt and Turkey were cut off following Egyptian President Abdel Fattah al-Sisi’s leadership in the 2013 overthrow of Mohamed Mursi, a key ally of Turkish leader Recep Tayyip Erdogan, back when Sisi was the army chief.

In 2021, a positive turn in relations was seen as Turkey made efforts to mend fences with various regional powers. While Egyptian officials have proceeded with caution regarding reconciliation, a significant moment occurred when Erdogan and Sisi met and exchanged handshakes during the 2022 World Cup in Qatar.

“Regardless of any previous political disagreements, we have always been keen to maintain the relations between our peoples and our close economic and commercial cooperation,” Egyptian Prime Minister Moustafa Madbouly said in a cabinet statement released late on Wednesday.

Trade ties between Turkey and Egypt have continued despite the diplomatic freeze, but both countries have recently been looking to bolster regional financial ties to help their ailing economies.

The businesses visiting Egypt, some of which already have operations there, represent industrial development, textiles, clothes manufacturing, electronics, and medical supplies, the statement said. Turkish investments in Egypt total $2 billion, it added.

Sisi spoke by phone to Erdogan last week offering condolences and support after the deadly earthquake that struck Turkey this month.

Egypt also sent five military planes to Syria and Turkey with medicines and medical supplies, the ministry of defence said on Friday.