Egypt

Last updated: May 9, 2025

The Arab Republic of Egypt is located at the crossroads of Africa, Asia, and Europe. Its capital is Cairo, whose metropolitan area is the largest in the Arab world, with approximately 22 million inhabitants. In total, the country has about 118.4 million inhabitants and is growing by nearly two million people every year. With an area of one million square kilometers, Egypt is about three times the size of Germany. However, only about three percent of the land can be used for agriculture. In the fertile Nile Delta, cotton, rice, sugar cane, wheat, vegetables, and fruit are the main crops grown.

In 2011, Egypt was one of the centers of political upheaval in the Arab world. Since 2014, Abdel Fattah El Sisi has been the president. 

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. It has also had an association agreement with the European Union since 2004.​

​​Despite ongoing political constraints and security-focused governance, Egypt offers significant opportunities for German Businesses, thanks to a more investment-friendly climate. In recent years, the government has drawn attention to the remodernization of the Egyptian economy, especially through the development of several mega-projects. A second lane was added to the Suez Canal, construction of a new administrative capital in the desert east of Cairo moved forward, and the idea of using some 6,300 square kilometers of desert land for agriculture was revived. 

The renewable energy sector has been on the upswing since September 2014. Egypt’s topography offers the best conditions for the use of wind and solar energy. A new strategic energy partnership with the EU has been in place since April 2018, which includes technology transfer in the oil and gas sector and is expected to contribute to the increased use of renewable energy. Germany and Egypt signed a 2022 declaration to co-develop green hydrogen production, with a strong role for private business. For what concerns wind power, there are some notable installations along the Red Sea Coast, and a major solar plant in Upper Egypt, where the Government is stepping back to leave expansion to private sector actors.

The country also has a number of economically viable raw materials such as iron ore, phosphate, gypsum, gold, and marble.​

Egypt is the most industrialized country in North Africa. The main products that Egypt exports to Germany are crude oil, food, and textiles. Since the late 1990s, Egyptian exports to Germany have increased by 5.95 percent annually. German exports to Egypt mainly include machinery, motor vehicles and motor vehicle parts, and pharmaceutical and electronic products. The tourism sector plays an important role in the Egyptian economy, contributing about four percent of GDP (2019) and employing 3.4 million people directly and indirectly.​

On 17 March 2024, building on the Association Agreement concluded in 2004 and the Partnership Priorities agreed in 2022, the EU and Egypt have signed a Joint Declaration launching a new Strategic and Comprehensive Partnership in order to exploit the enormous potential relationship across all spheres of mutual interest. The partnership covers six main joint priorities: Political relations, Economic stability, Trade and sustainable investments, Migration and mobility, Security, People and skills.