Minister of Planning, Economic Development and International Cooperation during the activities of the Egyptian-Hungarian Business Forum with the participation of 130 companies from both countries

Trade and investment relations between Egypt and Hungary have witnessed growing development in recent years.

 

We call on Hungarian companies to explore investment opportunities in many promising sectors such as manufacturing industries and digital transformation.

 

The Suez Canal Economic Zone is an outlet for Hungarian exports to the Middle East and Africa region.

 

We look forward to strengthening cooperation between the two countries to localize industry and benefit from Hungarian expertise.

 

The government is working to provide greater space for the private sector and create a more competitive business environment.

 

We are continuing sectoral economic reforms to shift the course of the Egyptian economy towards production and export.

 

We are working through the Joint Committee to pave the way for more cooperation and trade and investment partnerships.

 

Activating the investment guarantee mechanism with the European Union to provide more expansion opportunities for Hungarian companies in Egypt._

 

 

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning and Economic Development and International Cooperation, participated in the activities of the Egyptian-Hungarian Business Forum, held at the headquarters of the General Authority for Investment (GAFI), with the participation of Eng. Hassan Al-Khatib, Minister of Investment and Foreign Trade, and Mr. Péter Szijjártó, Hungarian Minister of Foreign Affairs and Trade. This is within the framework of the upcoming 5th session of the Egyptian-Hungarian Joint Committee for Economic, Scientific and Technical Cooperation, which is being held in Cairo.

 

In her speech, the Minister of Planning and Economic Development and International Cooperation emphasized the depth of the partnership that binds Egypt and Hungary, and the mutual commitment to move forward towards broader horizons of fruitful and constructive cooperation in various fields, particularly at the economic, commercial, and investment levels, which have witnessed growing development in recent years. H.E. Minister Al-Mashat noted that the relations between Egypt and Hungary are not new, but rather their roots extend over decades of understanding and cooperation.

 

H.E. Dr. Al-Mashat affirmed that the convening of this forum comes at a very important time, as the world faces unprecedented economic and geopolitical challenges, which requires countries to work together and adopt new models of cooperation based on innovation, integration, and sustainability. H.E. added that the Business Forum embodies a vital platform for exchanging ideas and experiences, discussing joint investment opportunities, and enhancing direct communication between representatives of the public and private sectors in both countries.

 

H.E. Minister Al-Mashat explained that trade relations between Egypt and Hungary have witnessed remarkable development in recent years, noting that in 2023, the volume of trade exchange between the two countries reached about $380.4 million, of which $87.1 million was the value of Egyptian exports to Hungary, and $293.3 million for imports.

 

H.E. Dr. Al-Mashat clarified that this progress reflects the mutual trust between the business communities in the two countries, as well as the quality of the exchanged products and services, and their suitability for the markets.

 

H.E. Minister Al-Mashat also emphasized the importance of the Suez Canal Economic Zone, which represents a fundamental pillar in Egypt's development strategy and an attractive center for international investments. She pointed out that this unique zone, with its four industrial zones and six seaports, is a strategic gateway to the markets of Africa and the Middle East, and provides promising opportunities in sectors such as logistics services, the automotive industry, solar energy, petrochemicals, pharmaceutical industries, and green hydrogen.

 

H.E. Dr. Rania Al-Mashat highlighted that Egypt pays great attention to industrial and technological transformation and is working to strengthen partnerships with friendly countries in this field, foremost of which is Hungary.

 

H.E. Minister Al-Mashat pointed to the state's keenness to develop key sectors such as the pharmaceutical, textile, building materials, and medical devices sectors, with a focus on circular economy models, environmental innovation, and smart manufacturing, which represents one of the tributaries of future economic growth, localizing industry and benefiting from Hungarian expertise in these fields.

 

H.E. Dr. Al-Mashat highlighted the government's keenness to provide greater opportunities for the private sector and create a more competitive business environment by setting a ceiling for public investments. H.E. mentioned that this direction aims to rationalize public spending and create more space for the local and international private sector to lead the engine of economic growth in an environment characterized by efficiency, transparency, and fair competition.

 

H.E. Minister Al-Mashat reiterated that Egypt continues to implement the National Program for Structural Reforms, launched by the government in 2021, as one of the most important pillars of the comprehensive and sustainable development vision. H.E. Dr. Al-Mashat outlined that the program is based on five main pillars aimed at increasing productivity, stimulating inclusive growth, and enhancing the resilience of the Egyptian economy in the face of shocks.

 

In another context, the Minister of Planning and Economic Development and International Cooperation stated that there are more funding opportunities available for Hungarian companies, foremost of which is the European Union guarantee mechanism worth €1.8 billion, which is being activated to enhance the expansions of Hungarian and other companies in Egypt.

 

H.E. Minister Al-Mashat continued that within the framework of this program, the focus is on three main axes in the current phase, which are strengthening macroeconomic stability, improving the business environment, and accelerating the pace of green transition. She added that these reforms have begun to bear fruit, as the gross domestic product recorded a growth rate of 4.3% during the second quarter of the current fiscal year, which is the highest quarterly growth rate in more than two years. H.E. Dr. Al-Mashat outlined that this growth was achieved thanks to the strong performance of the non-oil industrial sectors by 17.7%, tourism by 18%, and information and communication technology by 10.4%, which indicates the transformation of the Egyptian economy towards productive and innovation-based sectors.

 

H.E. Minister Al-Mashat also referred to the significant increase in private sector investments by 35.4%, compared to a decrease in public investments by 25.7%, in a clear indication of the success of the state's efforts in stimulating the private sector and redirecting resources towards the most efficient and profitable sectors, explaining that the private sector constitutes more than 50% of total investments in Egypt, compared to less than 40% for the public sector, in a fundamental structural shift that reflects Egypt's firm commitment to building a competitive and dynamic economy.

 

In conclusion, H.E. Minister Al-Mashat confirmed that the forum contributes to reaffirming the depth of the relationship between Egypt and Hungary. H.E. Dr. Al-Mashat expressed aspiration to deepen the bonds of strategic cooperation in all fields through the Joint Committee, and that the forum will be a starting point towards broader economic and trade partnerships based on the exchange of interests, the integration of capabilities, and the investment of the latent potential in the two countries.