
Over 2,800 Chinese Firms Invest USD 8 Billion in Egypt
May 23, 2025
More than 2,800 Chinese companies have invested over USD 8 billion in Egypt, according to Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI). Key players include tech and manufacturing giants such as Huawei, Haier, Midea, ZTE, and OPPO, with rising confidence reflected in a growing number of new licenses issued to Chinese firms.
GAFI is targeting strategic sectors—automotive, electronics, artificial intelligence, textiles, and renewable energy—as part of a national push to position Egypt as a regional hub for manufacturing and technology. Among the major projects underway is a USD 300 million car assembly plant by China's GAC Motor, alongside the launch of the Chinese Textile City in Minya Governorate.
Haier, Midea, and Shanfeng are also among the first companies to benefit from Egypt's 'golden license', a fast-track permit aimed at streamlining investment procedures and cutting red tape for strategic projects.
Heiba discussed these developments during a meeting with Guangdong Province Governor Wang Weizhong in Cairo. Egypt has also confirmed its participation in two major upcoming events: the China-Africa Investment Forum in July and the Egypt-China Investment Forum in November, both expected to deepen bilateral economic cooperation.
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Al-Ahram Weekly
10 minutes ago
- Al-Ahram Weekly
Unleashing mining potential - Economy - Al-Ahram Weekly
Egypt's mining sector has recently been in the limelight with a set of new exploration agreements and production increases, not only for gold, which is the most actively looked for mineral, but also phosphates and iron and other lesser-known minerals to the public like white sand. The Egypt Mining Forum 2025, which took place last week, saw agreements finalised for more gold exploration with AngloGold Ashanti, which bought Centamin and is now the operator of the Sukari Gold Mine, as well as Canada's Barrick Mining Corporation. 'Egypt is open to all forms of investment, with a particular focus on empowering Egyptian, regional, and international investors, and we stand ready to allocate additional areas for exploration and prospecting across all mineral types, reaffirming our unwavering commitment to expanding growth opportunities within the mining sector,' Minister of Petroleum and Mineral Resources Karim Badawi said. A $658 million phosphoric acid complex is currently under construction in the New Valley governorate due to a contract between a consortium of Egyptian companies and two Chinese entities. Phosphoric acid is used in many industries, the most important of which is fertilisers. The complex has an estimated production capacity of 900,000 tons annually. 'This clearly demonstrates the strong desire of international companies to expand their investments in the Egyptian mining sector, which serves as proof of major international companies' confidence in Egypt's investment climate, reflecting the success of the state's policy in attracting foreign investments,' Badawi said. Egypt recorded $446 million in revenues from mineral wealth development in the 2025 year to date, marking a 131 per cent increase compared to the previous year, Badawi told the forum attendees. The increased interest follows government efforts to streamline the sector by amending the mining law and introducing investment-friendly changes in the formula of sharing costs and profits with explorers. The most recent move was parliament's approval of a bill changing the status of the Egyptian Mineral Resources Authority (EMRA) to that of an economic authority with its own independent budget. The draft law establishes a regulatory framework modeled after the structure of Egypt's General Petroleum Corporation (EGPC), with the goal of simplifying procedures and improving flexibility so that mineral resources can be developed more efficiently and competitively. 'The swift alignment of the mining legislation with international best practice demonstrates unprecedented institutional collaboration. The unified commitment across Government, Parliament, and industry to defined timelines has enabled us to enact critical reforms that will drive sustainable growth in Egypt's mining sector,' said Hoda Mansour, Managing Director and Vice Chair of Sukari Gold Mines, representing AngloGold Ashanti during the forum. MP Mohamed Ismail, who submitted the demand to change the EMRA to an independent economic entity, noted that as a public service authority it is under fragmented oversight, reporting financially to the ministries of planning and finance and technically to the Ministry of Petroleum. This administrative and organisational distortion, he told the House of Representatives, has constrained the authority's performance and led to the mining sector contributing less than one per cent to the country's GDP. EMRA, now known as the Mineral Resources and Mining Industries Authority, will keep 65 per cent of its annual profits and transfer the remaining 35 per cent to the state treasury. Ismail expected the change to mark a turning point for the industry and to increase government revenues from LE2 billion to LE12 billion annually within seven years, raise the sector's GDP share to six per cent in five years, and boost exports from $1.5 billion to $7 billion within a decade. A closer look at the sector reveals that gold still attracts the lion's share of investment. A Fitch Solutions report issued early last year pointed out that in March 2021, the former minister of petroleum and mineral resources, Tarek Al-Molla, had announced that Egypt aimed to become a world-class mining hub, raising its mining exports to $10 billion by 2040, up from $1.6 in 2021. 'While we do not expect export growth to be as strong as these aims, gold production and exports have strong potential. The government is liberalising the gold sector in an attempt to encourage foreign investment, and we expect gold prices to remain high in the coming five years, which will encourage exploration and mine development,' the report noted. According to a government document cited by the news outlet Al-Arabiya, Egypt's gold sector has witnessed remarkable growth, with gold and precious stone exports surging by 74 per cent to reach $2.85 billion in the first 11 months of 2024, up from $1.64 billion during the same period in 2023. While steel makes a lot of news locally owing to the effect of price changes on the construction sector, little attention is given to the volume of production. Egypt, states the Fitch report, is emerging to be Africa's largest steel producer and second-largest producer in the Middle East and North Africa (MENA) region after Iran. Egypt's steel production continued to grow consistently throughout the Covid-19 pandemic, whereas most other countries experienced at least temporary contractions. Crude steel output reached 9.8 million tons in 2022, the second-largest in MENA after Iran. 'We forecast average annual growth of 1.5 per cent over the next decade as the government supports the industry to reduce reliance on imported steel,' Fitch said. During the period between 2019 and 2024, phosphate production saw the highest rate of growth, according to a report prepared by the Egypt Oil and Gas Group, with an annual average of eight million metric tons (mmt) compared to 3.92 mmt in 2019-2020. This reflects intensified mining activity, strategic investment, and strong export demand supporting Egypt's phosphate industry, it said. The Abu Tartur Plateau in the Western Desert is one of the largest and most promising deposits of phosphates, known for high-grade ore and substantial reserves. A detailed study titled 'Phosphate Mining in Egypt: Geology and Sustainable Development' by Mahmoud Zanaty, a geologist at US firm Haliburton, confirms that Egypt possesses four per cent of global phosphate deposits, totalling 2.78 billion tons, and produces six million tons annually, which accounts for three per cent of global output. Phosphates have diverse applications across several industries, creating vast investment opportunities. Industry observers say that in the light of the projected 25 per cent expansion in cultivated land over the next six years, there will be a higher demand for phosphate-based agricultural products, resulting in a vast domestic market. However, high production costs, especially in the Abu Tartour Plateau, which contains approximately one billion metric tons of reserves but with high impurities, represent a challenge for the sector. There is also fierce competition, especially from neighbouring African and Arab countries, such as Morocco, which has the world's largest phosphate reserves, Saudi Arabia, and Jordan. Other minerals highlighted by Egypt's Oil and Gas report showed declining or inconsistent trajectories during the five-year period. Iron production, which averaged 0.05 mmt, dropped sharply by 84 per cent and ceased entirely after 2020-21. 'Egypt's iron production declined sharply due to outdated machinery, heavy financial losses exceeding LE9 billion, inconsistent energy and raw material supplies, and a government decision to liquidate the Egyptian Iron and Steel Company,' the Fitch report said. * A version of this article appears in print in the 24 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:


Middle East
2 hours ago
- Middle East
OPEN// FM: Egyptian economy has promising investment chances
CAIRO/BAMAKO, July 24 (MENA) - Minister of Foreign Affairs, Emigration and Egyptians Abroad Badr Abdelatty affirmed that the Egyptian economy—being one of the largest economies in the African continent—possesses promising investment opportunities and extensive cumulative expertise in implementing strategic projects in sectors such as infrastructure, agriculture, energy, dams, pharmaceuticals, and telecommunications. He also highlighted the significant progress Egypt has achieved in both industrial and service sectors. Abdelatty's remarks came while inaugurating the Egypt-Mali Business Forum on Thursday in Mali's capital, Bamako. A high-level Egyptian delegation of 30 business leaders, CEOs, and representatives of major Egyptian companies across various fields participated in the forum. In his opening speech, Abdelatty said the forum marks a new and important milestone in strengthening economic and trade partnerships between Egypt and Mali. He emphasized that it opens unprecedented opportunities for the private sectors in both countries to develop partnerships based on integration and trust, in line with the depth of historical ties and the economic potential of both nations. The foreign minister stressed that Egypt-Mali relations are currently witnessing unprecedented momentum and that the forum serves as a significant starting point for boosting trade exchange, encouraging industrial and investment partnerships, and enhancing cooperation between the business communities of both countries. He described the forum as a practical first step toward strengthening institutional cooperation. He pointed out to joint efforts that have led to the formation of an economic working group, as well as ongoing efforts to establish an Egypt-Mali Business Council to activate cooperation opportunities across various sectors. He expressed Egypt's sincere desire to expand its investments in the Republic of Mali, especially in sectors prioritized by the Malian government, such as textiles, wood products, and pharmaceuticals. For his part, Mali's Minister of Industry and Trade Moussa Alassane Diallo emphasized the special importance that the Malian government places on enhancing cooperation with Egypt. He praised Egypt's vast expertise in supporting development across Africa. He also expressed Mali's aspiration to benefit from Egypt's pioneering experience in several key sectors. He affirmed that the holding of the forum reflects a shared political will to elevate economic and investment cooperation between the two countries. (MENA) Y R E/R E E


Al-Ahram Weekly
a day ago
- Al-Ahram Weekly
FM Abdelatty inaugurates Egypt-Mali Business Forum in Bamako - Foreign Affairs
Minister of Foreign Affairs Badr Abdelatty inaugurated the Egypt-Mali Business Forum on Thursday in Bamako, Mali's capital, according to a statement from the Egyptian Foreign Ministry. The forum featured broad participation from senior business leaders and representatives of both the public and private sectors from Egypt and Mali. In his opening speech, Abdelatty stated that the forum represents a new and important milestone in strengthening economic and trade partnerships between Egypt and Mali. He noted that Egyptian-Malian relations are currently witnessing unprecedented momentum. Egypt's FM emphasised that the forum opens unprecedented opportunities for the private sectors in both countries to develop partnerships based on integration and mutual trust, reflecting the two countries ' deep historical ties and economic potential. He praised the forum as a practical first step toward institutional cooperation, especially in light of the joint efforts that led to the establishment of an economic working group between the two countries. He also highlighted the ongoing efforts to create an Egypt-Mali Business Council to activate cooperation opportunities across various sectors. Furthermore, Abdelatty expressed Egypt's genuine desire to expand its investments in Mali, particularly in the textile, wood, and pharmaceutical sectors. He also explained that the Egyptian economy, being one of the largest in Africa, has promising investment opportunities. Egyptian companies, Abdelatty added, have ample experience in implementing strategic projects in infrastructure, agriculture, energy, dams, pharmaceuticals, and telecommunications. According to the statement, the Egyptian FM reaffirmed Egypt's continued support of Mali's efforts to achieve security and stability and to counter terrorism. He stressed the importance of adopting a comprehensive approach that links security and development. In return, Moussa Al-Hassan Diallo, Mali's Minister of Industry and Trade, emphasised the high importance the Malian government places on enhancing cooperation with Egypt. He also praised Egypt's expertise in supporting development in Africa. Moreover, Diallo stated that the forum reflects the shared political will to raise the level of economic and investment cooperation between the two countries and represents a qualitative step toward establishing a sustainable partnership. Abdelatty's visit to Mali is the fourth destination on his five-leg African tour. Having already visited Niger, Mali, Nigeria, and Burkina Faso, he has yet to visit Senegal. This regional tour follows Egypt's engagement in the 47th Ordinary Session of the African Union's Executive Council held earlier in July. Follow us on: Facebook Instagram Whatsapp Short link: