Türkiye and Egypt Strengthen Ties with State Visit

Türkiye and Egypt are moving toward rapprochement after a decade of strained relations. During a one-day visit to Ankara, Egyptian President Abdel Fattah Al-Sisi and Turkish President Recep Tayyip Erdoğan signed 17 memorandums of understanding, focusing on enhancing cooperation in finance, energy, defense, and tourism.

Relations between the two nations soured following the 2013 coup that ousted Egyptian President Mohamed Morsi, leading to a downgrading of diplomatic ties. However, since 2020, both countries have restored ambassadorial exchanges, and Turkish investment in Egypt has surged, particularly in textiles and manufacturing. Currently, Turkish investments in Egypt exceed $3 billion, primarily in free trade industrial zones.

A significant boost to this investment landscape includes a $200 million agreement by Turkish company Polaris to acquire land for an industrial zone in New October City, expected to be operational within five years. Turkish industrialists, particularly in labor-intensive sectors, view improved relations favorably due to lower costs in Egypt compared to Türkiye.

The two countries aim to increase bilateral trade to $15 billion within five years, with a projected 20-25% increase next year. However, two-way trade fell to $6.6 billion in 2023, down from $7.8 billion in the previous year. This trend has continued into 2024, with trade at $3 billion in the first half of the year, though increased cooperation may change this trajectory.