00:00 After years of disagreement and disagreement, Egypt and Turkey are now in a new phase in
00:12 diplomatic and economic relations.
00:13 It began in November last year, when the heads of the two countries announced their agreement
00:20 to develop bilateral relations.
00:21 In preparation for what followed, bilateral meetings opened a new path to strengthen
00:27 economic relations.
00:30 Turkish investments in Egypt currently amount to about 2.5 billion dollars, through about
00:36 790 Turkish companies investing in the Egyptian market.
00:40 There are expectations that the coming period will push the Egyptian and Turkish private
00:46 sectors to more investments and to benefit from competitive and export standards in the
00:51 region, through a mechanism that allows for joint cooperation in Egypt and export to
00:57 various countries around the world.
00:58 "Cooperation must be based on the principle of win-win or take-and-go.
01:04 Of course, Turkish products are very competitive with Egyptian products in the markets, and
01:13 we agree with them on the principles of free trade and supply and demand, that we can compete
01:21 with each other and cooperate.
01:23 If investments come to us, they will go to them.
01:26 We take energy from them and we take it to do something else."
01:29 Egypt is the largest trading partner for Turkey in the African continent, where the
01:34 value of bilateral trade between the two countries reaches 10 billion dollars during
01:39 the last five years.
01:43 The two countries are also looking to complete trade deals based on local currencies for
01:51 the two countries, instead of dollars.
01:53 "It is based on the principle that we do not stop.
01:56 I want to import, they want to import, and we do not stop because we do not find dollars
02:00 and we find dollars.
02:01 But in the end, there will be equations.
02:03 I will export to them in pounds, they will export to me, I will export to them and they
02:06 will export to me in pounds, and you will export to me in pounds.
02:09 In the end, we must do an equation.
02:11 There must be a price for this and a price for that."
02:15 With the interest of the two sides, the Egyptian and the Turkish, in accelerating the flow of
02:20 economic cooperation between them, the announcement came about the study of establishing a Turkish
02:25 industrial area in Egypt to cooperate in the field of the development of the car industry
02:30 and the food industry.
02:32 The Turkish government promised to establish a representative office to establish a branch
02:39 in Egypt.
02:40 Alaa Sanad, CNBC Arabia, Cairo.
03:00 Welcome, our viewers.
03:02 Relations between Egypt and Turkey are witnessing rapid developments at the diplomatic and
03:07 economic levels.
03:08 The two countries are aiming to increase bilateral trade from 10 billion dollars currently
03:14 to 15 billion dollars in the next five years.
03:17 The two sides are also looking for ways to complete trade deals with local currencies
03:23 instead of dollars.
03:25 This is the subject of our program today.
03:30 We will shed light on this during the program.
03:34 I am joined by my guest from Cairo, Adil Alamai, the president of the Egyptian-Turkish
03:38 Business Council.
03:39 Welcome to CNBC Arabia.
03:42 Welcome.
03:44 Good morning.
03:45 Welcome.
03:46 What we notice from this Egyptian-Turkish approach today, what is the importance of
03:51 this approach at this time, in your opinion?
03:54 Well, first of all, of course, the relations between Egypt and Turkey are very important.
04:01 The relations are extended to social, cultural, economic, political, and national levels.
04:10 But the economic file is the most important for us.
04:14 As you know, the Egyptian-Turkish Business Council was established in 1993.
04:21 It is one of the oldest business councils under the supervision of the Egyptian Business
04:26 Council, which is the oldest in the Arab countries.
04:30 Then it is the strategic partner of the Business Council.
04:35 As I said, the relations have extended over the previous ten years.
04:41 But let's agree that since the Free Trade Agreement, which was established in 2007,
04:50 there was a very big change in economic relations, both at the investment level and
04:56 the Turkish investments in Egypt, and few of them in Turkey.
05:00 Then to the size of trade and trade exchange, as you mentioned, the number exceeded in
05:07 the year 2022, which is about 10 billion dollars, the size of the trade gap between
05:14 Egypt and Turkey.
05:16 And the balance is likely to be the size of trade and trade between the two countries.
05:23 There is a big change, there is a very big optimism, God willing, for the next stage.
05:29 There are visits, in exchange for the official level, as you know, the former Egyptian
05:34 Minister of Trade was there in a visit.
05:37 I believe that it is one of the most important visits on the economic level between Egypt
05:43 and Turkey.
05:44 There are good indications, God willing.
05:47 Mr. Adel, excuse me for interrupting, if we talk about the interest on the economic
05:52 side, and especially about the Turkish investment today in the Egyptian market, what are the
05:57 main sectors that will be focused on during this period?
06:01 Egypt, thank God, during the past period, during the previous eight or nine years,
06:07 has focused on infrastructure, on the different construction of legislations and investments,
06:15 and this facilitates all the penalties.
06:18 Egypt has become prepared to attract a new and old market from investments.
06:24 As we know, Turkey today has more than 200 active companies in Egypt, and a large company,
06:31 50 or 60 companies, is considered one of the major companies in the Arab Egyptian currency.
06:38 We have investments of more than two billion dollars on Egyptian land.
06:42 We have a number of operations, more than a number of direct business opportunities.
06:45 How much of the Turkish investments are you expecting during the next period?
06:49 How much do you expect from these investments?
06:51 God willing, there are big numbers, I can't say the number, but today, Mr.
06:58 Samir, from Turkey, in the official visit, there is a company from the domestic equipment companies,
07:04 its investments will be estimated in the coming months, God willing, to exceed 150 million dollars
07:11 in 2000 business opportunities.
07:13 I am still talking about the business councils, God willing, we are waiting for the last quarter of 2023,
07:22 there will be a meeting in 2019 between the Turkish business councils,
07:29 God willing, there will be a meeting in Turkey, God willing, in the last quarter of this year.
07:33 We hope so, but if we talk today about the gas file, which has always been a place of disagreement
07:39 between the parties today, how do you see this file in the coming periods,
07:43 and the development of relations in this regard?
07:47 The economic file is between Egypt and Turkey,
07:52 The gas file, specifically, excuse me.
07:54 I will tell you, dear, the economic file is a combination between the two countries,
07:59 the Middle North and the Middle South,
08:02 gas, as you know, Egypt has controlled what is close to 1.8 billion dollars in 2022
08:11 from gas products to the Turkish market, there is no competition, but on the contrary, there will be integration,
08:19 and I see the next phase, economically, on the gas file, there will be integration
08:24 and a clear vision between the two countries, Egypt and Turkey,
08:29 and at the level of the private sector, God willing, in the export of gas and the future of oil, God willing.
08:35 Yes, we also talked there in the research that indicates the possibility of dealing with local currency,
08:42 and we saw that at the level of the two countries, there is pressure on the exchange rate.
08:47 Today, this initiative, to what extent will it support trade relations between the two sides
08:53 and form an economic entity in the region?
08:56 The global economic conditions, as you know, are going through the countries' sides
09:01 with dollar issues and free currency issues,
09:05 alongside the economy that is going through difficult circumstances,
09:09 but let's agree that there is a complete agreement between the Egyptian state and the Turkish state
09:14 to work on the exchange of local currencies.
09:18 From our point of view, as economists and businessmen, God willing,
09:22 that the 10 billion dollars or its share in the exchange rate between the two countries in local currencies
09:29 will exceed its share in products and services,
09:34 and a very large part of it will be spent, God willing,
09:37 on increasing the size of trade and the size of trade between the two countries,
09:42 and it will facilitate more trade and investment within the Egyptian state and the Turkish state,
09:49 and it will be a very big solution to Turkish investment in Egypt
09:55 and increase the size of trade between the two countries, God willing.
09:58 Yes, we are also seeing in the study of the agricultural bank,
10:02 regarding the Turkish government bank today and its entry into Egypt.
10:06 In your opinion, how far will this matter support the Egyptian sector in Egypt?
10:11 This file, Your Highness, was being discussed between the Egyptian side and the Turkish side
10:19 and at the level of banks since 2008,
10:23 and there were agreements to implement after the Egyptian banks to enter Turkey
10:29 and thus the Turkish banks' entry into the Egyptian market.
10:34 From our point of view, as a business council,
10:37 today, if the bank is fully involved in banking transactions,
10:43 whether inside Turkey or Egypt,
10:45 it will facilitate a lot in dealing between the two countries,
10:49 whether the Turkish banking sector or we have a number of Egyptian banks
10:54 that know that there are files that are currently being negotiated to implement in the Turkish market.
11:00 It will facilitate a lot and will be a positive process in terms of trade and communication between the two countries.
11:08 The priority that will be granted to the investor,
11:11 we also found some new laws related to special facilities between the two sides.
11:18 Were there any changes and improvements in the treatment of the investor, whether Egyptian or Turkish?
11:24 The free trade agreement between Egypt and Turkey, Your Highness, is a very good agreement.
11:30 And simply, the Turkish investor studied very well the Egyptian economy
11:40 and the Egyptian investor studied very well the investment and Turkish procedures.
11:46 And God willing, this is our role as a business council,
11:49 to work alongside all the private sectors in Egypt and Turkey,
11:56 to eliminate all obstacles between the two sides.
12:00 I see that God willing, we will have a very good opportunity, God willing,
12:04 a very big starting point in 2020, God willing, 2024,
12:08 in the size of the trade between Egypt and Turkey, and Turkey and Egypt, God willing,
12:12 and the increase in the size of Turkish investments.
12:15 As you know, Egypt today has a number of agreements that benefit from it,
12:20 whether the QSZ agreement, whether the Arab trade agreement,
12:25 whether several agreements that are very qualified to implement Egyptian goods or products
12:33 in the production of Turkey in Egypt, God willing, to implement all the markets that I mentioned.
12:39 Yes, thank you very much, Mr. Adil Al-Lamai,
12:43 President of the Egyptian Business Council, Turkey, for being with us on CNBC Arabic.
12:50 So we come here to the end of the deep part in which we shed light on the Turkish-Egyptian relations and relations,
13:00 and also on the trade agreement expected in the coming period,
13:06 and the most prominent doors of investment in this field.
13:09 A short break, and we will continue with the Egyptian parts.
13:12 See you.
13:13 (Music)
