Doha, Qatar: The Qatar-Egypt relationship has been dynamically thriving at the economic level throughout the past three years, especially in the area if investment, thereby promoting their volume of trade exchange and increasing the shared investments, by virtue of the State of Qatar' success in diversifying its economy.
In addition, Egypt's large investments have been increased in multiple fields amid unwavering efforts to expand investments between the two sisterly countries in critical areas during the coming period.
The two nations intensified their talks and mutual visits to give impetus to cooperation in investment, culminating in the visit of HE Deputy Prime Minister for Industrial Development and Minister of Transport and Industry of the Arab Republic of Egypt, Lt. Gen. Kamel Abdelhadi El Wazir this week to participated in the fifth meeting of the Higher Committee for Integrated Industrial Partnership for Sustainable Economic Development.
On the margins of this meeting, His Excellency met with HE Minister of Transport Sheikh Mohammed bin Abdullah bin Mohammed Al-Thani and discussed relations of bilateral cooperation in transportation and ports, in addition to avenues for strengthening them, particularly through leveraging eco-friendly technologies in the sectors of land transportation services and the development of maritime navigation activities.
HE Chairman of Qatar Chamber, Sheikh Khalifa bin Jassim Al-Thani met with HE the Deputy Prime Minister for Industrial Development and Minister of Transport and Industry of Egypt.
The meeting was attended by Head of the Federation of Egyptian Industries, Eng. Mohamed Zaki Al Suwaidi, and HE Ambassador of the Republic of Egypt to Qatar Amr Al Sherbini.
HE the Chairman of Qatar Chamber highlighted that there is ongoing coordination between the Qatar Chamber and the Federation of Egyptian Chambers of Commerce to boost cooperation in a range of economic sectors, in addition to strengthening the relationship between businessmen from both nations, noting that this collaboration would reinvigorate joint investments and ventures, ultimately boosting trade exchanges.
His Excellency indicated that the volume of trade between Qatar and Egypt increased by 38 percent during the past year, reaching a value of approximately QAR 746 million, compared to QAR 540 million in 2023.
HE El Wazir emphasized that Egypt offers numerous incentives and facilities to Qatari investors, including the expedited allocation of industrial lands and the issuance of licenses on the same day, highlighting that there are 23 investment opportunities in the Egyptian industrial sector, encompassing industries that are not only in demand within the Egyptian market but can also be exported to foreign markets.
He encouraged Qatari businessmen to invest in his country, particularly in the industrial sector.
This meeting convened within the framework of a series of active engagements between the two nations, particularly following the visit of HH the Amir Sheikh Tamim bin Hamad Al-Thani to Egypt in June 2022, and the visit of HE President of the Arab Republic of Egypt, Abdel Fattah El-Sisi to Doha on Sept.13, 2022.
The is in addition to His Excellency's participation in the opening ceremony of the FIFA World Cup Qatar 2022 in November 2022, which had a profound impact in paving the way for the opening of new horizons to further strengthen bilateral relations, covering a broad spectrum of political, economic, and other pertinent issues, particularly in light of the current challenges faced by the region and the world.
Overall, the two nations have engaged in extensive discussions over the past three years, particularly through the visits of HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani to Egypt, to reinforce bilateral cooperation in economic spheres.
This effort was initiated on March 29, 2022, with a meeting between HE Prime Minister of the Arab Republic of Egypt Dr. Mostafa Madbouly, and the participation of HE Minister of Finance Ali bin Ahmed Al Kuwari to discuss bilateral relations between the two nations, in addition to the importance of beefing up cooperation and coordination across various sectors.
Both parties commended the establishment of a Joint High Committee, chaired by the foreign ministers of both countries, dedicated to facilitating ongoing consultations and enhancing cooperation and coordination in all fields.
The economic and investment cooperation between the two countries has been further strengthened through the agreement on a range of investments and partnerships in Egypt, amounting to a total of USD 5 billion to be allocated over the forthcoming period.
On Nov. 27, 2024, the visit of HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani to Egypt received significant attention, particularly regarding the economic dimension of bilateral relationship, with a particular emphasis on investment matters.
Throughout the visit, His Excellency met with HE President of the Arab Republic of Egypt, Abdel Fattah El-Sisi and HE the Egyptian Prime Minister Dr. Mostafa Madbouly.
In a joint press conference with HE Minister of Foreign Affairs, Immigration and Egyptian Expatriates Affairs, Dr. Badr Abdel Aati. HE the Prime Minister and Minister of Foreign Affairs highlighted that the visit marked significant milestones in the bilateral relations between the two nations, encompassing a wide array of topics, with particular emphasis on economic cooperation and investment sectors.
It also provided an opportunity to review the existing Qatari investments in Egypt. His Excellency expressed his anticipation that this visit would contribute to the continued efforts of the working teams in monitoring the progress of these projects and further strengthening the commercial and economic cooperation between the two brotherly countries.
For his part, HE Abdel Aati clarified that HE Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani was briefed on a comprehensive presentation from the Egyptian Prime Minister and various ministers regarding the investment climate and the favorable business environment for Qatari investments in Egypt.
The discussion also focused on addressing any potential challenges that investors might encounter, including matters related to trade exchange and cooperation in humanitarian fields.
Regarding the importance of expanding the investment file between the State of Qatar and the Arab Republic of Egypt, Egyptian economic experts and analysts emphasized that enhancing Qatari investments in Egypt would open new horizons for growth and cooperation in light of successive global shocks and geopolitical tensions in the Arab region, especially since the two countries are holding consultations to expand investments in new fields, particularly energy projects, and to increase the volume of trade exchange and facilitate mutual investments, in addition to removing obstacles that may prevent this, as well as in light of the several successful Qatari investments in the Egyptian market, including, for example, investments by the Qatar Investment Authority estimated at around USD 3.317 billion in resorts and tourism projects.
In his remarks to Qatar News Agency (QNA), Professor of International Economics and Member of the Egyptian Society for Economics and Legislation and Member of the Egyptian Society for Political Economy, Statistics and Legislation Dr. Ali Al Idrissi said that economic relations between Egypt and the State of Qatar have witnessed remarkable development during the past two years in particular, as the volume of Qatari investments in Egypt has increased to more than USD 5 billion, focused on energy, real estate, and tourism projects, with future plans to increase investments in industry and infrastructure. He noted that the volume of trade exchange between the two countries has increased to reach around USD 1.2 billion in 2024, compared to USD 890 million in 2022, attributing this growth to several reasons, including facilitating investment procedures, removing customs barriers, and enhancing cooperation in joint projects.
Al Idrissi added that the Egyptian market is one of the most attractive markets for Qatari investments, due to its large size, which includes more than 100 million consumers, in addition to the advanced infrastructure and economic reforms that have improved the business environment. He pointed out that he expects that with the continuation of this momentum, Qatari investments in Egypt will rise to USD 7 billion by 2026, with a greater focus on renewable energy and technology projects, which will enhance the economic partnership between the two countries and open new horizons for growth and cooperation in light of successive global shocks and geopolitical tensions in the Arab region.
Regarding the impact of this remarkable development in the investment cooperation relations between the two countries, Economic expert and head of the Capital Center for Economic Studies and Research Khaled Al Shafei told QNA that investments between Egypt and the State of Qatar aim to achieve more economic and industrial integration, more production capacities and job opportunities, considering that these investments work to increase the volume of production and the capacity of Egyptian products in terms of exports, in addition to reducing the import bill, and thus reducing the deficit represented in the trade balance. He pointed out that increasing the volume of trade exchange in this regard means facilitating the ways of access of Egyptian and Qatari goods and commodities to and from the two countries without imposing any fees or burdens, which enhances the opportunities for the flow of trade movement between them and meeting the needs of the citizens of the two countries.
In this regard, Al Shafei emphasized the importance of increasing investments in new and diverse activities, such as investment in energy fields, as it represents a basic factor in investment and economic security, contributing to creating a strong economy and effective industries. It is also the basic pillar on which any new investment depends, as providing energy enhances the opportunities to provide and meet the needs of all existing and planned projects in the coming periods. He pointed out that increasing the volume of Qatari investments in Egypt gives positive returns to both parties, in light of Egypt's large market of more than 100 million people, and it is also the gateway to Africa.
Regarding the most important Qatari investments that increased the volume of trade exchange between the two countries, Egyptian economic analyst Ahmed Adam said that economic relations between Egypt and the State of Qatar began to witness remarkable growth since the increase in the volume of trade exchange between the two countries in 2021 at a growth rate of 76.4 percent. In this regard, he noted that this growth is due to the increase in Egyptian exports to the State of Qatar, especially agricultural products, food, and textiles, while Egypt's most important imports from the State of Qatar are liquefied natural gas, petrochemicals, and aluminum.
He added that Qatar National Bank is a shining example of the success of Qatari investments in Egypt, as it achieves successes that support the strength, durability, and stability of the Egyptian banking system, as the bank's total assets in Egypt amount to EGP 620.5 billion, and the bank achieved profits worth EGP 15.8 billion according to the latest approved annual budget for the bank, which owns 234 branches and includes 7,209 employees, as it is one of the three largest banks in the private sector, and a major player in the banking market in Egypt.
In light of the diversity of Qatari investments in Egypt, HE Prime Minister of the Arab Republic of Egypt Dr. Mustafa Madbouly had mentioned in a previous interview with QNA that 261 Qatari companies with a Qatari contribution amounting to USD 2.165 billion operate in the Egyptian market, including USD 249 million in the tourism sector, about USD 208 million in the construction sector, and about USD 36 million in the industrial sector.
