Eng. Khaled Nosseir, BEBA Chairman, delivered welcome remarks to the esteemed guests, notably H.E. UK Ambassador to Egypt, Gareth Bayley as well as Egyptian former minister of foreign affairs H.E. Nabil Fahmi, former minister of trade and industry, Tarek Kabil, and former minister of petroleum Tarek El Molla.

In his keynote speech, H.E. Minister Abdel-Aty expressed gratitude to the British Egyptian Business Association (BEBA) for organising a timely event focused on exploring ways to strengthen economic, trade, and investment relations between Egypt and the UK. He emphasised BEBA’s pivotal role in connecting businesses, organizing trade missions, and fostering collaboration between the two nations.

Reflecting on his earlier meeting with British Foreign Secretary David Lammy, Abd-Atty highlighted the productive discussions held during the Association Council, which reinforced the strong and growing partnership under the Egypt-UK Association Agreement signed in December 2021. This agreement, he noted, has laid the groundwork for cooperation in critical areas such as investment, education, finance, technology, infrastructure, and renewable energy.

The Minister underscored Egypt’s position as one of the UK’s largest trading partners in Africa, with bilateral trade reaching $5.6 billion in 2023. Both sides, he stated, are eager to increase trade volume and diversify sectors to maximize mutual benefits. A proposed joint investment conference could serve as an important platform to achieve this goal, drawing inspiration from successful collaborations with European partners.

Abd-Atty detailed the Egyptian government’s efforts to attract foreign investment, including measures to empower the private sector, provide tax incentives, and implement a national investment strategy targeting 65% private sector participation in total investments. Renewable energy, particularly green hydrogen, was identified as a key focus, with Egypt aiming to become a regional hub for its production and export to Europe. He also highlighted collaborations with European companies on green energy projects, including a significant bunker station in the Suez Canal to fuel ships with clean energy.

Localisation and industrial development were also emphasised as priorities for reducing reliance on imports and easing pressure on hard currency. The minister shared that Egypt’s strategy aims to increase the industrial sector’s GDP contribution to 20% and renewable energy’s share in the energy mix to 42% by 2035, aligning with the country’s vision of becoming a global hub for green hydrogen production.

Addressing the nation’s youthful demographic, Minister Abd-Atty described Egypt’s over 60 million citizens under the age of 35 as both a challenge and an opportunity. He stressed the importance of empowering this vibrant segment of society to drive sustainable development.

In closing, the minister reiterated Egypt’s commitment to creating a business-friendly environment and addressing investment challenges. He assured attendees that the government is actively fostering partnerships and unlocking opportunities across sectors. “The sky is the limit,” he affirmed, encouraging investors to explore the vast potential Egypt has to offer.

At a Q&A session following his speech, Minister Abdel-Atty addressed key questions on the future of Egypt-UK trade and investment relations, as well as broader agreements with other European nations. The session was moderated by Maged El Menshawy, Chairman & CEO of Manapharma and Vice Chairman of BEBA’s Board of Directors.

The Impact of the Egypt-UK Association Agreement

When asked how asking how the Egypt-UK Association Agreement influences trade volume, market access, and foreign direct investment (FDI), Minister Abdel-Atty emphasised that the agreement has created numerous opportunities to enhance British investment in Egypt. While acknowledging existing trade imbalances, he stressed the need to unlock Egypt’s export potential, particularly in agricultural commodities like strawberries and grapes. He called for the removal of certain barriers, such as restrictive quota systems, which hinder Egypt’s ability to double its exports to the UK.

He highlighted the broader potential of the agreement, which not only facilitates trade but also paves the way for increased UK investments in diverse sectors within Egypt. Minister Abdel-Atty also invited British businesses to leverage Egypt’s membership in the African Continental Free Trade Agreement (AfCFTA), which allows goods with 50% local Egyptian content to enter African markets duty-free.

The minister described Africa as a burgeoning opportunity for global investors, noting its rapidly growing middle class and population, projected to double by 2050. He called on UK businesses to view Egypt as a gateway to Africa and to capitalise on this win-win arrangement.

Expanding Trade Agreements with European Nations

When asked about similar trade agreements with other European countries, Minister Abdel-Atty highlighted Egypt’s longstanding agreement with the European Union (EU), which encompasses all 27 member states and includes the Agadir Agreement for Mediterranean countries.

He shared an example of Samsung localising production in Egypt to benefit from duty-free access to European markets, showcasing the incentives for foreign investors. While the EU agreement has been effective since 2004, Minister Abdel-Atty noted that Egypt is actively working to review and improve the terms, given the significant trade deficit favouring Europe.

The Minister stressed the importance of increasing Egypt’s exports of fruits, vegetables, and other commodities to the EU, urging a review of restrictive quota systems that currently limit these opportunities. He also highlighted the success of the first EU-Egypt Investment Conference and revealed plans for a second edition and a potential Egypt-EU summit, aimed at advancing comprehensive and strategic partnerships.

Concluding his remarks, Minister Abdel-Atty urged the UK to accelerate its efforts to match the EU’s progress in strengthening economic ties with Egypt.