Editing Economy of Egypt (section)

== Capital flows ==
=== International trade ===
Egypt’s international trade has long been a central pillar of its economy, constituting 40% of its GDP according to the [[World Bank]]. Over the years, the country has pursued greater economic integration through a series of free trade agreements, including those with the EU-Egypt Association Agreement and the [[African Continental Free Trade Area]] (AfCFTA).<ref name=trade-lloyd>{{cite web | url=https://www.lloydsbanktrade.com/en/market-potential/egypt/trade-profile#:~:text=In%202022%2C%20Egypt's%20main%20export,4.2%25%20%2D%20data%20Comtrade). | title=Egypt - Trade Profile | publisher=Lloyds Bank Trade | access-date=28 February 2025 }}</ref> The association agreement with the [[EU]], in force since 2004, established a free-trade area by eliminating tariffs on industrial goods and facilitating agricultural trade. A subsequent agreement in 2010 expanded this arrangement to processed agricultural and fisheries products. The gradual reduction of customs duties has significantly strengthened economic ties, with bilateral trade between the EU and Egypt more than doubling from €11.8 billion in 2004 to €27.9 billion in 2017.<ref name=gafi>{{cite web | url=https://www.gafi.gov.eg/English/Sectors/Pages/Trade-Agreements.aspx | title=Trade Agreements | publisher=General Authority for Investment and Free Zones (GAFI) | access-date=28 February 2025 }}</ref> 

The [[Pan-Arab Free Trade Area]] (PAFTA), signed by 17 [[Arab League]] members in 1981 and implemented in 1997, aims to enhance trade among Arab states by eliminating non-tariff barriers and gradually reducing tariffs. Originally planned to achieve full tariff removal by 2007, an Arab League summit in 2002 accelerated this timeline, establishing a zero-tariff trade zone by 2005 while granting preferential treatment to the least developed member states.<ref name=gafi/>

Egypt's participation in the [[AfCFTA]] is expected to enhance its trade with African markets, expanding beyond its traditional partners in [[Europe]] and the [[Middle East]]. As part of the Guided Trade Initiative (GTI), Egypt is working to accelerate integration, with sectors such as renewable energy, pharmaceuticals, and textiles identified as potential areas of growth. While logistical challenges exist, Egypt’s established industrial base and supply chain networks may support greater regional trade and economic cooperation.<ref>{{cite web | url=https://gfmag.com/economics-policy-regulation/egypt-africa-afcfta-trade-pacts/ | title=Egypt’s Role in Africa’s AfCFTA Trade Pacts | publisher=Global Finance | access-date=28 February 2025 }}</ref>

Egypt also benefits from [[Qualifying industrial zone|Qualified Industrial Zones]] (QIZs), which grant tariff-free access to [[U.S.]] markets for exports meeting predefined rules of origin. These zones offer cost advantages, exemption from non-tariff barriers, and access to Egypt’s large labor pool, attracting both local and foreign investors. Initially established in [[Alexandria]], the [[Suez Canal]], [[Greater Cairo]], and the [[Nile Delta|Central Delta]], the program has since expanded to [[Minya, Egypt|Minya]] and [[Beni Suef]].<ref name=gafi/>

[[Petroleum]] and [[natural gas]] have historically dominated both exports and imports, reflecting the country’s role as a regional energy hub. In addition to hydrocarbons, Egypt exports a diverse range of goods, including [[textiles]], [[fertilizers]], [[plastics]], and agricultural products.<ref name=trade-lloyd/>

Imports, meanwhile, are characterized by a high demand for intermediate and investment goods, reflecting the needs of the country’s industrial and infrastructure sectors. Essential commodities such as [[iron]], [[steel]], [[plastics]], [[wheat]], and [[pharmaceuticals]] also constitute a substantial share of inbound trade.<ref name=trade-lloyd/>

Egypt's exports have seen significant growth in the past years, reaching $51.1 billion in 2023.<ref name="OEC2023" /> The Egyptian government has set a target to increase exports to $145 billion by 2030. A new export support program, expected to launch in early 2026, will focus on boosting competitiveness by enhancing the value of Egyptian products and offering incentives for small companies and start-ups. This system, alongside the settlement of overdue dues, aims to address challenges faced by exporters, ensuring fair support distribution and fostering investment<ref>{{cite news | url=https://english.ahram.org.eg/NewsContent/50/1202/538582/AlAhram-Weekly/Economy/New-support-for-exports.aspx | title=New support for exports | date=11 March 2024 | access-date=27 February 2025 }}</ref>

=== Remittances ===
Remittances from Egyptians working abroad constitute a key source of  hard currency for the Egyptian economy. The Minister of Emigration and Expatriate Affairs reported that the number of Egyptians living abroad has increased more than fivefold since 2013, rising from 2.7 million in 2013 to 14 million in 2023<ref name=remittances-ar>{{cite web | url=https://www.arab-reform.net/publication/bigger-than-the-ras-al-hikma-deal-egyptian-remittances-and-the-reliability-of-the-egyptian-economy/ | title=Bigger Than the Ras al-Hikma Deal: Egyptian Remittances and the Reliability of the Egyptian Economy | publisher=Arab Reform Initiative | access-date=28 February 2025 }}</ref> and according to the [[Central Bank of Egypt]] (CBE), remittances reached $23.7 billion between January and October 2024, reflecting a 45.3% increase from $16.3 billion during the same period in 2023. <ref name=remittances-dne>{{cite news | url=https://www.dailynewsegypt.com/2024/12/24/egypts-remittances-hit-23-7bn-in-10m-2024-marking-45-3-growth/ | title=Egypt’s Remittances Hit $23.7bn in 10M 2024, Marking 45.3% Growth | publisher=Daily News Egypt | date=24 December 2024 | access-date=28 February 2025 }}</ref>

Remittances recorded a decline during 2022/2023, when inflows dropped to $22.1 billion from a peak of $31.9 billion in 2021/2022, figures rebounded in 2024. This was attributed to global disruptions from the [[COVID-19 pandemic]], exchange rate volatility, and geopolitical factors, including the [[Russian-Ukrainian war]]. The March 2024 economic measures, particularly the liberalization of exchange rates and increased interest rates on Egyptian pound and dollar-denominated savings instruments, played a key role in restoring remittance inflows to the formal banking system.<ref name=remittances-dne/>

As a result of this recovery, Egypt has moved from sixth to fifth place globally among the top remittance-receiving countries, ranking behind India, Mexico, China, and the Philippines. The sustained rise in remittances underscores their continued importance to Egypt’s economy and highlights the impact of recent economic policies on foreign currency inflows.<ref name=remittances-dne/>

The Egyptian government considers remittances from Egyptians abroad vital to the economy and aims to sustain their growth as part of its broader economic strategy. To that end, the government has introduced various measures to attract remittances, including offering dollar savings certificates with some of the highest interest rates globally, according to the Minister of Emigration and Expatriate Affairs. These efforts aim to bolster foreign currency inflows and integrate remittances into the formal banking system.<ref name=remittances-ar/>

Additional incentives include customs exemptions for cars imported for personal use, requiring a foreign currency deposit refundable in Egyptian pounds after five years at the prevailing exchange rate. The government has also introduced a final exemption from compulsory conscription for draft evaders or male students abroad over the age of 18, available for a fee of $5,000 or €5,000. Furthermore, the state has promoted real estate sales in foreign currency, offering land and property to Egyptians abroad and foreign investors.<ref name=remittances-ar/>

According to a study by the [[International Organization for Migration]], most remittance-receiving households use the funds for daily expenses, but 20% portion is invested in real estate, small businesses, and other economic activities.<ref name="egypt.iom.int">{{cite web|url=http://www.egypt.iom.int/Doc/IOM%20Migration%20and%20Development%20in%20Egypt%20Facts%20and%20Figures%20(English).pdf|title=Migration and Development in Egypt|publisher=International Organization for Migration Cairo|access-date=2 December 2015|archive-date=5 February 2011|archive-url=https://web.archive.org/web/20110205011709/http://www.egypt.iom.int/Doc/IOM%20Migration%20and%20Development%20in%20Egypt%20Facts%20and%20Figures%20(English).pdf|url-status=dead}}</ref>

=== Suez Canal ===
{{Main|Suez Canal}}
[[File:Capesize bulk carrier at Suez Canal Bridge.JPG|thumb|right|Vessel transiting through the [[Suez Canal]]]]
The [[Suez Canal]], a vital maritime passageway linking the [[Mediterranean Sea]] to the [[Red Sea]], has played a crucial role in global trade since its completion in 1869. Constructed under the direction of [[Ferdinand de Lesseps]], the canal provided a direct shipping route between [[Europe]] and [[Asia]], significantly reducing travel time by bypassing the lengthy voyage around the [[Cape of Good Hope]]. Over the decades, the canal has undergone multiple expansions to accommodate the growing volume of global maritime trade. In 2021, more than 20,600 vessels passed through the canal, with an average of 56 ships per day.<ref>{{cite web|title=Number of ships passing through the Suez Canal from 1976 to 2021|url=https://www.statista.com/statistics/1252568/number-of-transits-in-the-suez-cana-annually/|publisher=Statista|date=31 March 2022}}</ref> To enhance its capacity, the Egyptian government launched an expansion project in 2014, widening key sections of the canal and nearly doubling its capacity from 49 to 97 ships per day.<ref name="SuezExpansion">{{cite news |title=New Suez Canal project proposed by Egypt to boost trade |url=http://www.caironews.net/index.php/sid/224460353 |access-date=7 August 2014 |publisher=Cairo News |archive-date=29 November 2014 |archive-url=https://web.archive.org/web/20141129022814/http://www.caironews.net/index.php/sid/224460353|url-status=live}}</ref>

The [[Suez Canal Area Development Project#New Suez Canal|New Suez Canal]], inaugurated in 2015, introduced a parallel shipping lane and deepened sections of the original canal to accommodate larger vessels. The expansion aimed to reduce transit times from 18 to 11 hours and significantly cut waiting periods for ships. The project, costing about $8 billion,<ref>{{cite news | url=https://www.bloomberg.com/news/articles/2015-08-05/egypt-opens-8-billion-new-suez-canal-boosting-el-sisi | title=Egypt Opens $8 Billion New Suez Canal, Boosting El-Sisi | publisher=Bloomberg | date=5 August 2015 | access-date=28 February 2025 }}</ref> was financed exclusively through domestic investment, with Egyptians contributing via bank certificates of deposit yielding 12%, later raised to 15.5%.<ref>{{cite web|url=https://www.youm7.com/story/2017/5/23/ممثل-هيئة-قناة-السويس-للبرلمان-زيادة-فائدة-شهادات-قناة-السويس/3249990|title=ممثل هيئة قناة السويس للبرلمان: زيادة فائدة شهادات قناة السويس لـ15.5%|date=23 May 2017|website=اليوم السابع|access-date=4 March 2019|archive-date=24 September 2018|archive-url=https://web.archive.org/web/20180924024920/https://www.youm7.com/story/2017/5/23/%D9%85%D9%85%D8%AB%D9%84-%D9%87%D9%8A%D8%A6%D8%A9-%D9%82%D9%86%D8%A7%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D9%8A%D8%B3-%D9%84%D9%84%D8%A8%D8%B1%D9%84%D9%85%D8%A7%D9%86-%D8%B2%D9%8A%D8%A7%D8%AF%D8%A9-%D9%81%D8%A7%D8%A6%D8%AF%D8%A9-%D8%B4%D9%87%D8%A7%D8%AF%D8%A7%D8%AA-%D9%82%D9%86%D8%A7%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D9%8A%D8%B3/3249990|url-status=live}}</ref> The [[Armed Forces Engineering Authority (Egypt)|Armed Forces Engineering Authority]] played a major role in the excavation and construction of the expansion, which was completed in just one year.<ref>{{cite web|url=https://www.youm7.com/story/2015/3/19/القوات-المسلحة-تسابق-الزمن-لإنهاء-مشروع-قناة-السويس-الجديدة-إنجاز/2111209|title=القوات المسلحة تسابق الزمن لإنهاء مشروع قناة السويس الجديدة.. إنجاز 215 مليون متر مكعب من أعمال الحفر بنسبة 93.5% من المستهدف..وتكريك 102 مليون متر|date=19 March 2015|website=اليوم السابع|access-date=4 March 2019|archive-date=24 September 2018|archive-url=https://web.archive.org/web/20180924030320/https://www.youm7.com/story/2015/3/19/%D8%A7%D9%84%D9%82%D9%88%D8%A7%D8%AA-%D8%A7%D9%84%D9%85%D8%B3%D9%84%D8%AD%D8%A9-%D8%AA%D8%B3%D8%A7%D8%A8%D9%82-%D8%A7%D9%84%D8%B2%D9%85%D9%86-%D9%84%D8%A5%D9%86%D9%87%D8%A7%D8%A1-%D9%85%D8%B4%D8%B1%D9%88%D8%B9-%D9%82%D9%86%D8%A7%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D9%8A%D8%B3-%D8%A7%D9%84%D8%AC%D8%AF%D9%8A%D8%AF%D8%A9-%D8%A5%D9%86%D8%AC%D8%A7%D8%B2/2111209|url-status=live}}</ref>

Beyond its role as a maritime corridor, the Suez Canal has become an economic hub, with the establishment of the [[Suez Canal#Suez Canal Economic Zone|Suez Canal Economic Zone]] (SCZONE). Encompassing 461 km² across [[Port Said]], [[Ismailia]], and [[Suez]], the SCZONE offers zero customs rates to attract foreign investment. Major infrastructure projects within the zone focus on the development of [[East Port Said Industrial Zone|East Port Said]] and [[Ain Sokhna]], with planned expansions to West Port Said, El-Adabiya, Arish, and El Tor.<ref>{{cite web|title=Suez Canal Economic Zone|url=http://www.gafi.gov.eg/English/MediaCenter/News/Pages/Suez06-1-2016.aspx|website=GAFI|publisher=Ministry of Investment, Egypt|language=en|date=6 January 2016|access-date=10 May 2018|archive-date=27 April 2018|archive-url=https://web.archive.org/web/20180427215447/http://www.gafi.gov.eg/English/MediaCenter/News/Pages/Suez06-1-2016.aspx|url-status=live}}</ref> This initiative is part of a broader effort to transform the canal into a global trade and logistics center, with Egypt aiming to attract $30 billion in investment within five years.<ref>{{cite news|title=Egypt aims to attract $30 bln in investment in Suez Canal Zone within 5 years: Investment minister|url=http://english.ahram.org.eg/NewsContent/3/12/274195/Business/Economy/Egypt-aims-to-attract--bln-in-investment-in-Suez-C.aspx|work=Ahram Online|date=25 July 2017|language=en|access-date=10 May 2018|archive-date=11 May 2018|archive-url=https://web.archive.org/web/20180511145559/http://english.ahram.org.eg/NewsContent/3/12/274195/Business/Economy/Egypt-aims-to-attract--bln-in-investment-in-Suez-C.aspx|url-status=live}}</ref> The canal remains a critical global trade route, setting a record annual revenue of $9.4 billion in the fiscal year ending June 2023.<ref>{{Cite news |date=21 June 2023 |title=Suez Canal annual revenue hits record $9.4 billion, chairman says |language=en |work=Reuters |url=https://www.reuters.com/world/africa/suez-canal-annual-revenue-hits-record-94-bln-chairman-2023-06-21/ |access-date=15 August 2023}}</ref>