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German investors eye Egypt as key market, multiple trade delegations expected in 2025

Zawya04-03-2025

German investors are showing a strong interest in Egypt's economic potential, recognizing the country's strategic opportunities and ongoing market reforms, according to Maren Diale-Schellschmidt, CEO of the German-Arab Chamber of Industry and Commerce (AHK Egypt). She emphasized that Egypt's economic reforms, expanding market, and strong bilateral ties with Germany make it an attractive destination for investment. Strengthening partnerships between German and Egyptian businesses, she noted, will be key to fostering sustainable growth and innovation across various sectors.
As part of efforts to deepen economic ties, three German trade delegations are scheduled to visit Egypt in the second half of the year. The first, arriving in June, will focus on energy efficiency in buildings. A second delegation, specializing in textile machinery, is set to visit in September, followed by a third in November concentrating on the pharmaceutical sector. Additionally, a delegation focused on the circular economy within the technology sector is also expected. This visit aims to facilitate the exchange of expertise while exploring investment opportunities for German companies in Egypt. Diale-Schellschmidt explained that these visits were planned for the latter half of the year due to Germany's ongoing elections.
In a separate development, the seventh session of the Egyptian-German Joint Economic Committee, originally scheduled for February, has been postponed to the second half of the year. The committee includes Egypt's Minister of Investment and Foreign Trade and Germany's Minister of Economy and Climate Protection, and its rescheduling is expected to further enhance economic cooperation between the two nations.
Energy remains one of the most promising sectors for German investment in Egypt, particularly in renewable energy and green hydrogen. Diale-Schellschmidt highlighted Egypt's abundant solar and wind resources but pointed out that one of the main challenges is the efficient distribution of this energy, an area where German expertise could provide significant value. She noted that while German participation in green hydrogen projects is expected to increase, significant investment in this field may not materialize within the current year. She also stressed that foreign investors need a flexible regulatory framework, economic and political stability, and attractive tax incentives to maximize their contributions to Egypt's energy sector.
Germany remains one of Egypt's top economic partners, with collaboration spanning trade, investment, and industrial development. Bilateral trade continues to expand, driven by investments in infrastructure, energy, and manufacturing. German companies are steadily increasing their footprint in Egypt, particularly in renewable energy, green hydrogen, and industrial automation. Beyond these sectors, both countries are strengthening cooperation in education and vocational training, supporting workforce development and technology transfer. Major German firms, including Siemens and Mercedes-Benz, play a crucial role in modernizing Egypt's economy. With ongoing projects in transport, logistics, and smart cities, Egypt is positioning itself as a key hub for German investment in Africa.

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