Egypt is thinking of allocating land for Indian industries in the Suez Canal Economic Zone

India-Egypt trade and investment ties are set to get a boost with Prime Minister Narendra Modi and visiting Egyptian President Abdel Fattah El-Sisi holding wide-ranging talks in this regard.

The Egyptian side is considering the possibility of allocating a special area of land for the Indian industries in the Suez Canal Economic Zone (SCEZ), with the Indian side in charge of making the master plan for the project.

The two sides have also decided to support each other's economies by promoting corporate exploration of new investment and economic prospects.

Egyptian President El-Sisi was on his second state visit to India from January 24-27. In addition to holding restricted and delegation-level talks with Prime Minister Modi on January 25, he was the Chief Guest at India’s Republic Day celebrations on January 26, 2023, reflecting the importance attached by India to the relationship with Egypt

A joint statement on the visit issued on Thursday said Prime Minister Modi and President El-Sisi welcomed the growth of Indian investments in Egypt, which are currently worth more than USD 3.15 billion. The two leaders agreed to encourage businesses from their respective countries to explore emerging economic and investment opportunities in each other’s countries.

The Egyptian side said it welcomes the flow of more Indian investments and promised to offer incentives and facilities as per applicable regulations and frameworks. On its part, India underlined its support for this approach by encouraging its companies, which have the potentials to establish overseas investments, to make use of the available investment opportunities in Egypt, the joint statement noted.

The two leaders appreciated the strong bilateral economic engagement and expressed satisfaction at the current level of bilateral trade at a record high of US$ 7.26 billion in 2021-22, despite the challenges posed by the pandemic.

They expressed confidence that a bilateral trade target of US$ 12 billion could be achieved within the next five years by both countries, by diversifying the trade basket and focusing on value addition.

In light of Egypt's achievements in improving rural regions through the initiative "Decent Life" and India's expertise in using technology to combat poverty, both sides decided also to intensify their bilateral cooperation in the areas of capacity building and the exchange of experience in developmental domains.

The two sides emphasized their commitment to working together in the trade of strategic goods and those necessary for food security in a way that can help both sides contain the effects of the global food crisis while complying with the commercial regulations and standards relevant in each other's states as well as the principles of competition and transparency.

Both leaders also expressed their appreciation for the first Joint Working Group (JWG) meeting on trade and investment, which was conducted virtually on March 3, 2021.

They noted the conduct of the 5th bilateral "Joint Trade Committee" (JTC) meeting, which was held in Cairo on July 25, 2022, and covered a thorough analysis of bilateral trade, the removal of non-tariff obstacles, and enhancing cooperation in the area of investments.