With Egypt looking for international investments and stronger economic ties and China continuing its investment overseas, both countries have the potential for stronger economic ties, said Ahmed Al-Nagar, CEO of Egypt’s state-run Ahram organization late Friday.
“The two countries plan for economic progress built on peaceful, just and equitable cooperation. This raises the possibility that Egyptian-Chinese economic cooperation in a just manner will serve the people of both countries,” Al-Nagar, also an economist, said in an analysis published on the official Ahram Online website.
Al-Nagar noted that China has become the world’s largest export economy with over 2.3 trillion U.S. dollars of exports of commodities in 2014. “China’s strong presence in foreign markets is made through high competitive investments in developing countries to leverage low cost of workforce and material to access other markets around the globe,” he explained, noting this makes the Egyptian market of great significance for direct Chinese investments.
Additionally, Egypt boasts enormous mineral and stone resources that can offer a solid foundation for growing transformative industries, a potential that could be unlocked by China’s investments, and scientific and technical expertise. China could generate great benefits from investment in such sectors in Egypt with the low cost of workforce and raw materials. The products of such projects can be exported to Arab, African and European markets close to Egypt at a low cost, or sent custom-free to free trade zones linked to Egypt.
Egypt is battling to revive its ailing economy due to the country’s five years of turbulence after suffering two uprisings, by luring direct investments and launching economic reform to improve the climate for business. Egypt and China celebrate in this year the 60th anniversary of diplomatic relations, and the leaders of the two countries and high-profile delegations at all levels have been meeting frequently since 2015.