- Strategic Trade Corridor: Egypt is strengthening its role as a key logistics hub between India and Europe, leveraging Ro-Ro links like Alexandria–Trieste to support the IMEC.
- Investment Gateway: With $550B in infrastructure upgrades, special economic zones, and competitive labor costs, Egypt is positioning itself as a production base for European firms targeting India.
- India-Egypt Synergy: Bilateral trade aims to triple, focusing on sectors like pharma, automotive, and tech, with Egypt offering regional advantages for Indian and European businesses alike.
Hassan El-Khatib, Egypt’s Minister for Investment and Foreign Trade, stated during his recent visit to India in an interview with Dipanjan Roy Chaudhury of The Economic Times:
“We are implementing a Ro-Ro (roll-on/roll-off) service between Alexandria and Trieste, Italy, so that products can reach Europe in just a few days […] If we have a Ro-Ro route from Egypt to Trieste, it could further facilitate India’s engagement within the framework of the IMEC.”
Egypt is increasingly emerging as a critical hub for trade and investment between Europe and India, leveraging its strategic location, advanced infrastructure, and expanding trade agreements. It is positioning itself as a linchpin between India and Europe—much like Alexandria was during the Roman-era Gold Route. This strategic shift reflects how seriously Egypt views the India-Middle East-Europe Economic Corridor (IMEC). Moreover, it highlights the Egyptian government’s strategic vision in recognizing Trieste as a gateway to Europe for IMEC and potentially for the Three Seas Initiative as well.
With significant investments in transportation networks and special economic zones, Egypt aims to become a key channel for European companies seeking to engage with India’s rapidly expanding economy. During his visit to India, El-Khatib emphasized these ambitions, presenting Egypt as a commercial and industrial hub connecting Europe, Africa, and the Arab world. He noted that the relationship with India is grounded in strong political and historical foundations, and that Egypt has invested heavily in infrastructure over the past decade to establish itself as a global export hub. For European companies aiming to strengthen their presence in India, Egypt’s growing role as a logistical and manufacturing center is becoming increasingly relevant.
Currently, trade between Egypt and India stands at $4–5 billion, but both countries have set an ambitious target of $12 billion in the coming years. El-Khatib stressed that this is not merely a theoretical goal but one backed by concrete steps, including trade delegations and business forums to promote investment. Egypt is particularly eager to attract European investments in key sectors where India excels, such as pharmaceuticals, automotive, and tech start-ups. He highlighted that India’s pharmaceutical industry offers significant opportunities, especially in the production of active pharmaceutical ingredients (APIs). Since the Middle East lacks API manufacturing facilities, Egypt is positioning itself as a regional hub for pharmaceutical production—an advantage for European players looking to expand in these markets.
Egypt has invested $550 billion in infrastructure over the past decade to enhance its connectivity with global markets, including Europe. The country manages six major ports and is establishing itself as a transshipment hub, with initiatives like the Ro-Ro service between Alexandria and Trieste significantly reducing shipping times to European markets. Another trade route with Turkey is also under development. Furthermore, Egypt is investing in high-speed rail projects, including a $30 billion partnership with Siemens, which will allow goods to reach coastal export hubs in a matter of hours—further boosting supply chain efficiency for European firms.
Beyond logistics, Egypt offers a highly favorable business environment for foreign investors. The government has introduced special economic zones, tech hubs, and a “golden license” scheme to streamline approval processes for large-scale foreign investments. The country also boasts a skilled workforce and highly competitive labor costs—significantly lower than in Turkey and Morocco. These factors make Egypt an increasingly attractive manufacturing base for European companies looking to serve the Indian and Middle Eastern markets, while benefiting from a stable, well-connected production ecosystem closer to their primary customer bases.
As Europe reassesses its trade strategies and supply chain resilience, Egypt’s role in global commerce is becoming more prominent. With companies seeking alternatives to China for manufacturing and sourcing, Egypt represents a compelling opportunity. Its proximity to both Europe and India, combined with modern infrastructure and cost-effective production capabilities, positions it as a strategic gateway for European firms aiming to tap into India’s growing economic potential. According to El-Khatib, Egypt recognizes Europe’s need to source from a reliable and cost-efficient location and stands ready to meet this demand with advanced infrastructure, strategic incentives, and strong trade ties with India. As Egypt deepens its economic links with India, European businesses have a unique opportunity to leverage this expanding partnership, gaining more efficient access to the Indian market while benefiting from Egypt’s rising stature as a global trade and manufacturing hub.
