Arab Finance: Chinese investments in Egypt during the first half (H1) of 2026 are estimated at between $1.5 billion and $2 billion, with most of the inflows coming from expansions of existing projects rather than entirely new investments, Mostafa Ibrahim, Vice Chairman of the China Committee at the Egyptian Businessmen's Association (EBA), told Al Arabiya Business.
Ibrahim said Egypt is currently negotiating with more than 50 Chinese companies to establish new projects in the local market. He added that agreements have recently been signed with around one-third of the targeted companies, while negotiations on the remaining two-thirds are still ongoing.
He noted that the conversion of these projects into actual investments depends on how quickly negotiations with Chinese companies are concluded, as well as Egypt's ability to maintain a favorable investment environment.
According to Ibrahim, Chinese investments continue to flow into Egypt at a steady pace, supported by the country's competitive advantages, particularly the incentives offered by the Suez Canal Economic Zone (SCZONE).
Moreover, he said SCZONE remains the main destination for Chinese investors due to its investment incentives and strategic location, which gives manufacturers easier access to European and US markets through Egypt's trade agreements.
He added that Chinese companies investing in the zone primarily view Egypt as an export-oriented manufacturing base rather than a destination for serving the domestic market, especially amid restrictions on direct exports to Europe and the US.
Ibrahim highlighted that most Chinese investments in Egypt are concentrated in the industrial sector, including ready-made garments, textiles, bag manufacturing, and related industries. He noted that many Chinese companies initially entered the market with smaller investments before expanding their operations.
Looking ahead, Ibrahim said Egypt aims to double Chinese investments during H2 2026. He added that achieving this target will depend on strengthening investment promotion efforts, showcasing the success stories of Chinese companies already operating in Egypt, and enhancing the role of commercial representation offices, embassies, and industrial developers.
On bilateral trade, Ibrahim said the trade balance remains heavily tilted toward China, with total trade valued at around $18 billion. Egyptian exports stand at between $2 billion and $3 billion, while imports from China range between $15 billion and $16 billion.
He projected that bilateral trade between Egypt and China could increase to around $20 billion within the next two years as Chinese investments expand, noting that these projects rely heavily on importing production inputs from China.
Ibrahim added that narrowing the trade deficit will require Egyptian exporters to take a more proactive approach to the Chinese market by exploring new export opportunities rather than relying primarily on traditional markets.
