Economic relations between Egypt and the European Union have seen significant advancement, with EU member states representing Egypt’s largest trading partner. In March 2024, bilateral cooperation was elevated to a comprehensive strategic partnership, accompanied by the announcement of a 7.4 billion euro financial package from the EU to Egypt, reflecting mutual interest in deepening trade and investment ties as a driver for shared development, particularly in energy, manufacturing, and infrastructure sectors.
According to Angelina Eichhorst, the EU Ambassador to Egypt, the relationship is built on genuine cooperation and mutual understanding. As the world’s largest trading bloc, the EU’s engagement with Egypt signals confidence in its economic trajectory. She noted that bilateral trade has surpassed 32 billion dollars and is expected to grow further. Egyptian agricultural exports, in particular, have gained stronger footholds in European markets due to improvements in product quality.
The Egypt-EU summit held in Brussels reinforced this partnership, highlighting aligned visions and a shared commitment to sustainable development through existing economic and political linkages. Data from Egypt’s Ministry of Planning, Economic Development, and International Cooperation indicate that Egypt received one billion euros under the macroeconomic support and budget assistance mechanism by the end of last year. The ministry continues to oversee the implementation of the second phase within the national structural reform program.
The EU’s economy, with a GDP of approximately 19.42 trillion US dollars in 2024, ranks among the world’s largest and most influential. It boasts advanced technological industries, strong agricultural and industrial bases, and holds the position of the globe’s leading trading entity. The euro serves as the official currency for 19 of the 27 member states and ranks second in global usage.
Egypt is advancing structural reforms aimed at boosting productivity and investment-led growth, focusing on high-value sectors such as manufacturing, tourism, energy, and logistics. The International Monetary Fund has acknowledged tangible improvements in Egypt’s economy over the past two years since the launch of its economic reform program, noting significant progress in macroeconomic stability.
The IMF forecasts GDP growth of 4.3% for the current fiscal year (2024–2025), rising to 5.6% in the following year (2025–2026), with public debt levels gradually declining. Egypt’s national development narrative emphasizes an economic model centered on structural reforms, macroeconomic stability, and a shift toward more complex, productive sectors.
The European Bank for Reconstruction and Development (EBRD), a leading multilateral development bank in private sector financing, plays a pivotal role in strengthening Egypt-EU cooperation. Egypt has made notable progress in implementing strategic projects through international collaboration with the EBRD. The bank supports investment guarantee mechanisms with the EU to attract domestic and foreign capital, empowers small and medium enterprises, promotes green transition, and provides technical assistance to foster public-private partnerships.
EU data shows that bilateral trade has risen substantially, from 23 billion euros in 2014 to 32.5 billion euros in 2024. Egypt’s exports to the EU include fuel, mining products, chemicals, and agricultural goods, with agri-food exports increasing from 650 million to 2.3 billion euros, particularly fruits and vegetables. The EU remains Egypt’s top foreign investor, with total investments reaching 27.6 billion euros in 2022.
Both parties continue efforts to improve the trade and investment climate to foster mutual growth. At the 2024 EU-Egypt Investment Conference, several private investment agreements were signed, alongside the launch of the Sustainable Green Industry Program and the NEXT MED regional cooperation funding agreement.
Additionally, the EU has allocated 206 million euros for the first three years of the multi-annual guidance program (2021–2027), focusing on green and sustainable development, human capital enhancement, economic resilience, and social development. Between 2014 and 2020, grant funding totaled around 756 million euros, with over 650 million euros in grants since 2008, leveraging nearly 8 billion euros in concessional loans from European financial institutions through co-financing by public and private sectors.
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Egypt and the European Union.. a strong economic partnership enhanced by investments and mutual understanding
Economic relations between Egypt and the European Union are witnessing notable development, with EU countries being Egypt’s primary trading partner. Cooperation between the two sides was elevated to a comprehensive strategic partnership in March 2024, along with the announcement of a 7.4 billion euro European financial package for Egypt, reflecting mutual interest in deepening trade and investment cooperation and transforming it into a real development driver benefiting both parties, especially in energy, manufacturing, and infrastructure.
According to Angelina Eichhorst, the EU Ambassador to Egypt, in previous statements, the relationship between Egypt and the European Union is a genuine partnership based on mutual understanding, and the EU being the world’s largest market, signing major agreements with Egypt signals confidence in its economy.
She stated that bilateral trade between Egypt and the EU exceeded 32 billion dollars and will grow further, noting that Egypt has shown great flexibility and success in improving the quality of its agricultural products, boosting exports to Europe.
The Egypt-EU summit in Brussels reinforces the existing partnership and reflects shared visions and commitment to common interests for development, thanks to the shared ties between Egypt and the EU.
According to data from the Ministry of Planning, Economic Development, and International Cooperation, Egypt received one billion euros from the EU under the macroeconomic support and budget assistance mechanism by the end of last year, and the ministry is working to monitor the implementation of the second phase under the national structural reform program.
Egypt-EU economic cooperation supports investment opportunities and sustainable development plans between the two sides, as the EU economy is among the largest and strongest globally, with a GDP of about 19.42 trillion US dollars in 2024.
The EU is also distinguished by advanced technological industries, is a major agricultural and industrial power, and the largest trading force globally. The euro is the official currency of 19 out of 27 member states and is the second most used currency worldwide.
Meanwhile, Egypt continues implementing structural reforms targeting enhanced productivity and investment-based growth, focusing on high-value-added sectors such as industry, tourism, energy, and logistics.
In this context, the International Monetary Fund confirmed that the Egyptian economy showed tangible improvement over the past two years since the start of the economic reform program, noting the program achieved significant progress in stabilizing macroeconomic indicators.
It added that economic growth rates have also improved, with expected growth for the current fiscal year 2024–2025 reaching 4.3%, rising to 5.6% in the next fiscal year 2025–2026, noting that public debt levels are gradually decreasing.
Also, Egypt’s national economic development narrative is an economic reform and structural program defining the economic model and consolidating macroeconomic stability, transitioning to higher-productivity sectors with greater economic complexity.
At the same time, the European Bank for Reconstruction and Development (EBRD), leading multilateral development banks in private sector financing, strengthens the robust partnership between Egypt and the EU. Egypt has made progress in implementing strategic projects through international cooperation and strategic partnership with the bank.
The bank plays a vital role in implementing the EU-Egypt investment guarantee mechanism to attract local and foreign investments, enabling the private sector through a comprehensive strategy reflecting Egypt’s national priorities, advancing the green transition, developing small and medium enterprises, and providing technical support to encourage public-private partnership projects.
EU data indicated that bilateral trade between the two sides increased significantly, from 23 billion euros in 2014 to 32.5 billion euros in 2024.
Egyptian exports to the EU focus on fuel, mining products, chemicals, and agricultural goods, with agri-food exports rising from 650 million euros to 2.3 billion euros, especially fruits and vegetables. The EU remains Egypt’s top foreign investor, with total investments reaching 27.6 billion euros in 2022.
Both sides continue working to improve the trade and investment environment to enhance mutual development and growth. During the 2024 EU-Egypt Investment Conference, several private investment agreements were signed, along with launching the Sustainable Green Industry Program and the NEXT MED regional cooperation funding agreement.
Additionally, the EU allocated 206 million euros for the first three years of the multi-annual guidance program (2021–2027) for bilateral cooperation with Egypt in green and sustainable development, human capital development, economic resilience, and social development.
Grants provided between 2014 and 2020 amounted to about 756 million euros, plus over 650 million euros in grants since 2008, attracting nearly 8 billion euros in concessional loans from European financial institutions through co-financing by public and private sectors.