Exploring Trade Opportunities with Egypt in West Asia

Egypt is a country located in the northeast of the African continent and borders the Mediterranean Sea to the north, Israel and the Gulf of Aqaba to the east, Sudan to the south, and Libya to the west. The capital of Egypt is Cairo. The currency of this country is the Egyptian pound (EGP). The official language of Egypt is Arabic and most of the people of this country also speak Arabic. The majority of Egyptians have Islamic beliefs. Egypt is a large and diverse market and has an advanced economy in the region. The main sectors of the Egyptian economy include services, industry, agriculture, economic foundations and tourism. Egypt has rich natural resources including oil, natural gas, granite, kaolin, phosphate and iron. The products that Egyptian businessmen import and export to other countries include machinery, electronic devices, chemical products, clothing and food products, agricultural products, steel products, and textile products. On the other hand, Egypt exports oil and gas products, agricultural products including food products, auto parts, textile products and wooden products to other countries. Egypt`s biggest trading partners are mainly China, Italy, America, India and Turkey. Also, Egypt has strong trade relations with Arab, European and African countries. The biggest sources of Egypt`s income are tourism, oil and gas, remittances from Egyptians living abroad, and the export of agricultural and industrial products.

Egypt’s strategic location and diversified economy make it a pivotal trade partner for businesses targeting West Asia. In 2023, Egypt's exports of goods and services accounted for 19.1% of its GDP, a significant rise from 10.6% in 2021, although still below the global average of 32.1%. This growth reflects Egypt's increasing integration into global trade networks, particularly in sectors like agriculture and industry. However, challenges such as high inflation (33.9% in 2023 compared to a global average of 8.6%) and a depreciating currency (30.6 LCU per USD in 2023 from 15.6 in 2021) may impact the cost of imports and exports, creating volatility for traders.

On the import side, Egypt's merchandise import value index dropped to 87.0 in 2023 from 128.5 in 2022, signaling reduced import activity, possibly due to economic pressures. Conversely, the export value index also declined to 82.1 in 2023 from 124.1 in 2022, indicating challenges in sustaining export growth. Yet, Egypt’s agriculture sector, contributing 11.6% to GDP in 2023, remains a promising area for trade, especially given its alignment with the global average of 11.3%.

For entrepreneurs, opportunities lie in sectors like industrial goods (32.1% of GDP) and services (51.3% of GDP), which dominate Egypt's economy. Egypt’s domestic credit to the private sector, at 29.3% of GDP in 2023, lags behind the global average of 67.1%, suggesting room for financial partnerships and investments. To mitigate risks, traders should leverage Egypt’s verified exporters and importers through platforms offering supply chain solutions and market insights tailored for the Middle East. By aligning with trusted B2B marketplaces, businesses can navigate economic fluctuations and capitalize on Egypt’s growing trade potential in West Asia.