Egypt

Last updated: August 12, 2026

The Arab Republic of Egypt is located at the crossroads of Africa, Asia and Europe. Its capital is Cairo, whose metropolitan area, with around 22 million inhabitants, is the largest in the Arab world. Overall, the country has around 118.4 million inhabitants and grows by almost two million people every year. With an area of 1,002,000 square kilometres, Egypt is about three times the size of Germany. However, only around three percent of the country’s land area can be used for agriculture. In the fertile Nile Delta, the main crops grown are cotton, rice, sugar beet, wheat, vegetables and fruit.

In 2011, Egypt was one of the centres of the political upheavals in the Arab world. Abdel Fattah El Sisi has been President of Egypt since 2014; his third term began in April 2024.

Egypt was a founding member of the UN and the Arab League in 1945 and is a member of the Organization of Arab Petroleum Exporting Countries (OAPEC), the World Trade Organization (WTO) and the Greater Arab Free Trade Area (GAFTA). In addition, Egypt is a party to the Agadir Free Trade Agreement with Morocco, Tunisia and Jordan. The Euro-Mediterranean Association Agreement between Egypt and the European Union was signed in 2001 and entered into force on 1 June 2004.

Egypt offers significant opportunities for German companies, supported by ongoing economic reforms and an increasingly attractive environment for investment and international business cooperation. In recent years, the government has focused attention on modernizing the Egyptian economy, particularly through the development of several megaprojects. The Suez Canal was expanded in 2015 with a second lane, while the new administrative capital east of Cairo was gradually developed into the new seat of government. In addition, Egypt aims to develop around 6,300 square kilometres of desert land for agricultural use by 2030.

Egypt continues to expand renewable energy. The updated national energy strategy aims to increase the share of renewable energy in electricity generation to 45 percent by 2028. Egypt’s topography offers excellent conditions for the use of wind and solar energy. Since April 2018, a new strategic energy partnership with the EU has been in place, which also includes technology transfer in the oil and gas sector and is intended to contribute to the increased use of renewable energy. In 2022, Germany and Egypt agreed on a partnership to establish a value chain for green hydrogen. Egypt adopted its National Strategy for Low-Carbon Hydrogen in February 2024, which was officially announced in August 2024. The strategy aims to establish Egypt as an international location for the production of low-carbon hydrogen and its derivatives, attract foreign investment and, in the long term, also develop export potential. The private sector plays a central role in this. In the field of wind energy, Egypt has several large-scale facilities, particularly along the Red Sea coast. One of the most significant solar projects is the Benban Solar Park near Aswan in Upper Egypt.

The country also has a range of economically exploitable mineral resources, including iron ore, phosphate, gypsum, gold and marble.

Egypt has a large and diversified industrial base and is continuing to expand its role as a regional manufacturing hub. German imports of goods from Egypt amounted to around EUR 1.65 billion in 2025, an increase of 7.6 percent compared with the previous year. German exports of goods to Egypt increased by 12.2 percent in 2025 to around EUR 4.38 billion. The main German export goods to Egypt include machinery and mechanical products, motor vehicles and motor vehicle parts, as well as pharmaceutical and electronic products.

The tourism sector plays a central role in the Egyptian economy. In 2025, just under 19 million international tourists came to Egypt – a new record. Growth continued in 2026: In the first four months of the year, 6.1 million tourists visited Egypt, seven percent more than in the same period of the previous year. The government aims to increase the number of international visitors to 30 million annually by 2030. Major projects such as the Grand Egyptian Museum, which officially opened on 1 November 2025, are intended to provide additional growth momentum and further strengthen Egypt’s role as one of the region’s most important tourist destinations.

Building on the Association Agreement concluded in 2004 and the partnership priorities agreed in 2022, the EU and Egypt signed a joint declaration on 17 March 2024 establishing a new Strategic and Comprehensive Partnership to harness the enormous potential of relations in all areas of mutual interest. The partnership encompasses six common main priorities: political relations, economic stability, trade and sustainable investment, migration and mobility, security, and people and skills. The first EU-Egypt Summit took place in Brussels on 22 October 2025. In October 2025, Egypt’s association with Horizon Europe was also agreed; since 2026, Egyptian organizations have been able to participate in the EU’s research and innovation programme under the conditions applicable to associated countries. At the 11th EU-Egypt Association Council on 15 June 2026, the implementation of the Strategic and Comprehensive Partnership was reviewed. Both sides also agreed to begin initial discussions on the future framework for bilateral cooperation for the period 2028 to 2034.