Business hub – cairo
Eng. Ibrahim Al-Araby, President of the General Federation of Chambers of Commerce, received the report of the advisors’ committee on the development of Egyptian-German economic relations to discuss all joint commercial and investment opportunities following the decline of German imports from Russia and Ukraine markets.
Al-Araby explained that the depth of the political and economic relations between the two countries, which extends for seventy years of cooperation, was behind the continuous interest in seizing all opportunities for developing the economic partnership.
Alaraby added that the number of German companies operating in Egypt is about 1,180, with a total investment value of $7.1 billion in the energy, railways, industry and tourism sectors. Germany is also a major partner in the infrastructure development revolution in Egypt, where German companies are implementing projects worth $33 billion in the energy and railway sectors, in addition to the Egyptian government signing a contract to manage the new railway system with the German Railways Authority for a period of 15 years.
He pointed out that the volume of bilateral trade is estimated at about 6.05 billion dollars in 2021, compared to 5.573 billion dollars in 2020.
Ibrahim Al-Arabi, head of the General Federation of Chambers of Commerce, had issued assignments to prepare a comprehensive report on Egyptian-German trade relations and the opportunities for increasing trade exchange and joint investments, as well as opportunities for Egyptian products in German markets, following the expected decline in German imports from Russia and Ukraine. On the sidelines of President Abdel-Fattah El-Sisi’s visit to Germany, which extends on July 17-18, 2022 to provide accurate information with the aim of increasing trade exchange and joint investments between the two countries.
The text of the report received by Engineer Ibrahim Al-Arabi, which was prepared by the Tank Egypt Group for Research and Economic Consultations, on trade relations and the joint trade balance, included the following:
Egyptian foreign trade
Egypt ranks 59th among the world’s largest exporting economies. in 2021 Egypt exported about $40.7 billion and its total imports amounted to $73.7 billion. Resulting in a negative trade balance of $33.07 billion in 2021, While Egypt’s GDP will reach $396 billion in 2021,
German foreign trade
Germany is the third largest exporting economy in the world. in 2021 The total German exports amounted to about 1.626 trillion dollars, and the volume of its imports was about 1.421 trillion dollars. Resulting in a positive trade balance of $205 billion in 2021, Germany’s GDP will be $4.22 trillion in 2021.
Trade balance between Egypt and Germany:
The total trade exchange between the two countries amounted to about 6.05 billion dollars in 2021, compared to 5.573 billion dollars in 2020.
Egyptian exports to Germany amounted to $1.151 billion in 2021, compared to $1.167 billion in 2020.
German exports to Egypt amounted to $4.907 billion in 2021, compared to $4.586 billion in 2020.
Egypt is the second market for German exports in Africa. While Germany is the seventh market for Egyptian exports to the European Union.
The most important Egyptian exports to Germany:
1- Petroleum and natural gas exports amounted to $215 million in 2021, compared to $393 million in 2020.
2- Fruit exports amounted to 107 million dollars in 2021, compared to 104 million dollars in 2020.
3- Vegetable exports amounted to $93 million in 2021, compared to $86 million in 2020.
4- Textile exports amounted to $142 million in 2021, compared to $136 million in 2020.
5- Vegetable oil exports amounted to 60 million dollars, compared to 45 million dollars in 2020.
6- Exports of electrical appliances reached 55 million dollars in 2021, compared to 34 million dollars in 2020.
The most important German exports to Egypt
1- Machinery and equipment exports amounted to $1.13 billion in 2021, compared to $1.21 billion in 2020.
2- Car exports amounted to $788 million in 2021, compared to $798 million in 2020.
3- Exports of machinery and electrical appliances amounted to $307 million in 2021, compared to $306 million in 2020.
4- Pharmaceutical exports amounted to 307 million dollars in 2021, compared to 263 million dollars in 2020.
5- Chemical exports amounted to $190 million in 2021, compared to $94 million in 2020.
Gas, iron, steel, plastics, aluminum, fertilizers, ceramic products, electrical appliances and furniture are Egyptian industries on the list of German market needs.
As for Germany’s imports from Russia and Ukraine, and the opportunities for developing Egyptian exports to German markets, given the set of economic sanctions that were imposed on Russian markets as a result of Russian-Ukrainian tensions, Direct trade affected many goods imported from Russia and Ukraine to Germany, This creates potential opportunities for Egyptian products such as gas, iron, steel, plastics, aluminum, fertilizers, ceramic products, electrical appliances and furniture.
Germany imports from the Russian market:
Germany’s imports from Russia amounted to $27 billion in 2021 compared to $17 billion in 2020
The most important imports came in the following order:
1- Petroleum and gas materials $17.76 billion in 2021 compared to $11.57 billion in 2020.
2- Mining materials $1.69 billion in 2021 compared to $848 million in 2020.
3- Copper: $1.14 billion in 2021 compared to $722 million in 2020.
4- Iron and steel: $915 million in 2021, compared to $330 million in 2020.
5- Aluminum: $766 million in 2021 compared to $484 million in 2020.
6- Plastic products: $214 million in 2021, compared to $95 million in 2020.