Egypt’s Industry Minister Urges Japanese Companies to Expand Investments

Egypt’s Minister of Industry Khaled Hashem called on Japanese companies to expand their investments in Egypt, highlighting the strong and evolving partnership between Egypt and Japan.

Speaking at a seminar organized by the Embassy of Japan in Egypt in Cairo, the minister said the relationship between the two countries has grown into a strategic partnership since 2023, reflecting the shared vision of their leadership to deepen cooperation in industry, technology, investment, and sustainable development.

The event was attended by Japan’s Ambassador to Egypt Fumio Iwai and Hiroki Inoue, head of the Japanese Business Association. Discussions focused on trends in Japanese overseas investment and ways to strengthen industrial and economic cooperation between the two countries.

Hashem noted that Japan is globally recognized for its advanced manufacturing, technological innovation, and high-quality industries, while Egypt is undergoing a major transformation aimed at establishing itself as a regional hub for industry, logistics, and international trade.

According to the minister, more than 100 Japanese companies are currently operating in the Egyptian market, most of them in the manufacturing sector. These investments contribute to technology transfer, job creation, and the development of local industrial capabilities.

Major Japanese firms operating in Egypt include Toyota, Nissan, Sumitomo Electric, Yazaki Corporation, Mitsubishi Corporation, Toshiba, and Sharp Corporation, many of which are expanding their activities in Egypt.

He highlighted several recent industrial projects that reflect the strength of bilateral cooperation, including a Yazaki automotive wiring factory in Fayoum Governorate, expansions by Sumitomo, the Torishima Pump Mfg. Co. facility in the Suez Canal Economic Zone, and the Saraya Co. factory in Ain Sokhna.

Hashem said Egypt is implementing an ambitious national industrial development strategy aimed at strengthening domestic manufacturing, deepening industrial value chains, and transforming the country into a competitive platform for manufacturing and exports.

He highlighted key advantages offered to investors, including Egypt’s strategic geographic location linking Africa, Europe, and Asia, access to markets of more than two billion consumers through free trade agreements, modern infrastructure, and a comprehensive system of investment incentives.

The government has also introduced initiatives to support industrial investment, including the “Golden License” for strategic projects, the industrial developer model for managing industrial zones, and programs supporting manufacturing industries and local supply chains.

The minister emphasized that the automotive industry is a priority sector for Egypt, with a comprehensive program underway to increase local content, attract global car manufacturers, and support the transition toward electric vehicles and clean transportation.

He noted that Japan is a key strategic partner in this field due to its global leadership in automotive engineering and advanced manufacturing technologies.

Hashem also pointed to promising opportunities for expanding cooperation in several emerging sectors, including renewable energy components, green hydrogen, sustainable fuels, industrial machinery, advanced engineering industries, electronics and semiconductor manufacturing, as well as medical and pharmaceutical industries and smart manufacturing technologies.

The minister welcomed the idea of establishing a Japanese industrial zone within the Suez Canal Economic Zone, which could serve as a strategic manufacturing base for Japanese companies targeting regional and global markets.

He also stressed the importance of expanding two-way trade, noting Egypt’s interest in increasing the presence of Egyptian companies in the Japanese market, particularly in competitive sectors such as agricultural and food products, textiles and garments, processed foods, natural extracts, and intermediate industrial products.

Hashem concluded by emphasizing that the Egypt–Japan partnership represents a model of complementary cooperation, combining Japanese technological capabilities with Egypt’s strategic location and expanding industrial base to support economic growth in both countries and contribute to broader regional development.