SFC Chief Correspondent Shi Shi at Egypt
Ahmed Ezz El Din, Chairman of the China Committee at the Egyptian Businessmen's Association, recently shared his perspectives with SFC reporter on the longstanding and multifaceted relationship between China and Egypt. As two of the world’s oldest civilizations, China and Egypt share deep cultural traditions that continue to inspire and strengthen their future collaboration. He expressed confidence that, underpinned by China’s trusted commitment, this growing partnership will drive significant economic and social development for both countries.
Highlighting Guangdong’s role as a thriving hub of cutting-edge technology and stunning natural beauty, Ahmed also emphasized the importance of expanding cultural exchanges to deepen mutual understanding and foster closer ties between the peoples of Egypt and this vibrant Chinese region.
SFC Markets and Finance: What are the main takeaways you have from the forum?
Ahmed Ezz El Din: Number one, the Chinese official leaders who were attending, they showed big interest in Egyptian-Chinese cooperation, and they are interested to have more investment and trading and economic operation between Egypt and China.
Egypt is in the center of the Middle East, if you see on the map, it is on one of the most important marine passages, which is the Suez Canal, it links between East and West. Secondly, Egypt is one of the early founders with China, with the leadership of China for the Belt and Road Initiative, we are part of this big project, it opens new project of development or infrastructure for economic cooperation all over this Silk Road, the old Silk Road.
We believe that as China have that long history, and Egypt have that long history, this reflect on deep values and strong traditions, and this protects and encourage future cooperation. So the world now is requiring close cooperation, and I think this will come in the right time.
You are highly welcomed. Many companies attended the event yesterday, there were more than 220 Egyptian companies, big Egyptian companies, the Chinese companies were in the B-to-B meetings, one of the companies reached 35 dates, Chinese company with Egyptian companies. So there was a lot of requests from Egyptians to meet and communicate, to find means for cooperating with Chinese, so please be sure that you are at home.
Secondly, also what is mentioned yesterday that we reached today 2800 Chinese company are investing and working in Egypt, and this is one of the greatest numbers. Secondly, China is our first and premier trade partners. Yes, we import much more from China, but we find very friendly climate that to encourage us to also to export Egyptian products that China, like agricultural products, some minerals that integrate in the economy welfare for most countries.
So the relationship is fully integrated, and there is a big synergy between people and the economies together and politically, for sure, on the same level, we have big processes. Always, China was on the side of Egypt and the Arabian causes and cases, so we carry this all in our hearts.
SFC Markets and Finance: Many Chinese companies are investing in Egypt. What do these Chinese company bring?
Ahmed Ezz El Din: Chinese companies bring to Egypt work or jobs that Egyptians are looking for, because we are around 35 million Egyptian men and women who are in the working age. So they are strong, powerful work. They need some direction, they need some little training, but they can be very effective to serve the economy. And 60% of our population are below 30, we are young population. So to bring the work power into in the right channel, I think this makes the country more developed.
Secondly, China have been exactly what Egypt would like to cooperate with, which is expanding the production base, also the technology, because we are used to working with Chinese engineers and Chinese technician, and the production lines in Egypt are coming more and more from China, so people feel familiar with the technology, so why not we don't be close together. And also it is good for China to help Egypt to utilize its raw materials. We have many raw materials that could be transformed into products. We have one of the raw materials that you can extract away 21 separate sub-products, final product from this original base. So I think China can work well with Egypt in these minerals, that is only presentation, there are some minerals, is only presentation.
We are seeking China. China, we know very well always the words are applied, so we feel Egyptians that with China, we work more to development.
SFC Markets and Finance: Do you have any cooperation with Chinese companies?
Ahmed Ezz El Din: Me, yes, for sure. I am working with one of the very famous, the top Chinese companies in linen business, because Egypt have got a lot of raw material and flax, but less production. So we are in cooperation to make one of the biggest factories in the Middle East. So I'm helping them in this so that they can do this big project, which will be an icon for all Africa, and it will be for export for all the world.
So it's another base, big base for this very highly reputable company, Chinese company outside of China. And we use all our experience to help and facilitate such kind of fast production. And all the licenses is finished, most of it, we are finishing now the last step. But they got the land they are preparing for construction. I think the project in one year will be realized. And I think the output will reach more than $150 million in the first year. It will be an interesting operation.
So cooperating between local and Chinese people, I think this shows understanding comes quickly, because we have the same target is to integrate and also win-win, both win. So to be very interesting operation.
SFC Markets and Finance: Do you think trade cooperation is a good way to connect people of all countries? Do you think trade cooperation will be a bridge?
Ahmed Ezz El Din: My opinion is you can use parts to be assembled, even assembling will be more encouraged in Egypt, because you can produce most of the parts, and just a simple image, because trade, some different countries have that certain level of customs. In Egypt, if you assemble the last part, you can take incentives, you can have good added-value from the local. So I think assembling even, or transforming of the transformation production, simple things that can be definitely producing.
Production in Egypt is competitive, because we have very encouraging and very competitive figures for energy costs, labor cost is very competitive, the lowest in all the region. Our shipping and logistics, because we are close to the conventional markets, either in Europe or the in the Middle East or Africa, makes it also competitive to reach in short time. And time now is a factor. How many days I take? So Egypt is very close.
And also the fourth thing is, what the incentives I will have in Egypt. There are new investment law that encourage such kind of investment. So we invite the Chinese companies to really when they make the study is, producing in Egypt, or transformation production in Egypt, or making technology services, it's very attractive in Egypt, very attractive, because everything is done with the mobile, in China, you have used the mobile as a tool of productivity. Please transfer to us this part of development, because you can send a lot of services on the telephone, and for instance, WeChat, it's very interesting, you can have all your services, you can have most of your life, you can do business inside, there is a lot to do, and can be very rewarding for Chinese enterprises that will do this, because the Egyptian peoples like to consume, they are consumers.
So I think trade, it can be part, but mainly producing in Egypt would be advantageous for the Chinese companies and with good added-value for them. And for the local market also, because if you produce in Egypt part of the products, you have no customs, you will have no more taxes, you have nothing, so it will be cheap.
