Egypt targets doubling of Chinese investments by year-end

Chinese investment in Egypt reached between $1.5 billion and $2 billion in the first half of 2026, with plans reportedly to double that amount in the remaining six months.

The investments focused primarily on expanding existing facilities rather than new projects, Saudi media network Al Arabiya reported, quoting Mustafa Ibrahim, vice chairman of the Egyptian-Chinese Business Council.

Egypt is in talks with more than 50 Chinese companies to execute new projects and has signed agreements with nearly a third of the targeted firms, he said.

Chinese investments in the North African country continue to grow steadily, driven by incentives (zero corporate taxes, customs exemptions for exports and 100 percent foreign ownership) and the location of the Suez Canal Economic Zone.

Ibrahim said the Chinese companies involved are not primarily focused on the local market but aim to build an industrial base for exports to Europe and the US.

Bilateral trade between Egypt and China stands at $18 billion, with a deficit of nearly $13 billion in China’s favour, the report said.

In April, Chinese investors announced plans to build an international logistics and trade city in Egypt at a cost of about $2 billion.

Chinese companies are among the largest foreign investors in Egypt, mainly in chemicals, textiles, energy and light industrial products.

More than 2,800 Chinese companies operate in Egypt with total investments exceeding $8 billion, minister of investment and foreign trade Hassan El-Khatib said in November.

Further reading:

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