Here’s why Egypt is so important for Türkiye
Turkish President Recep Tayyip Erdogan (R) and the Egypt President Abdel Fattah el-Sissi. (L) (Photo via Turkish Presidency)
Türkiye and Egypt, two key actors in the Mediterranean region, share a deep history and culture over so many years.
However, diplomatic relations between the two countries faced a critical challenge following Egypt’s 2013 military coup. After the coup, the diplomatic and military relations between the two nations came to a standstill.
So much so that this tension became symbolized by becoming a domestic political issue. Despite these tensions, the two nations have begun the process of normalization, particularly since the end of 2020.
In May 2021, exploratory talks, known as the Türkiye-Egypt Exploratory Round of Consultations, were completed in Cairo, marking an important step toward normalization.
The second round of talks was held in Ankara from September 7 to 8, 2021, and both sides agreed to continue talks. In addition, the desire to make progress on various issues and take further steps to normalize relations was reaffirmed, sending the message that the normalization process will continue with confident steps.
Türkiye took a major step by appointing an ambassador to Egypt in April 2022, after an eight-year hiatus. In July 2023, Egypt also appointed an ambassador to Türkiye.
Gaza issue crucial for both nations
The situation in Gaza has become an important diplomatic issue between Türkiye and Egypt. President Recep Tayyip Erdogan and Egyptian President Abdel Fattah el-Sissi called on Israel to end its blockade of Gaza.
Erdogan expressed his satisfaction with the strengthening of relations between the two countries and stated that close consultations continue on regional issues.
Foreign Minister Hakan Fidan discussed the situation in Gaza and regional developments in a phone call with his Iranian counterpart Abbas Araqchi. Fidan expressed Türkiye’s desire to strengthen bilateral relations with Iran and cooperate on important regional issues.
President Erdogan said that Israel is responsible for every death in Gaza and that only by abandoning ambiguous policies will it be possible to prevent Israel from dragging the region into further tension.
Türkiye to become natural gas hub
Türkiye is one of the world’s top energy consumers and Egypt is one of the key suppliers of liquefied natural gas (LNG) to the Turkish market. In February 2024, following the visit of Türkiye’s President Recep Tayyip Erdogan to Cairo, a meeting was held between the senior management of national natural gas companies BOTAS and EGAS (Egyptian Natural Gas Holding Company).
| 2016 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
| EGYPT | 99 (Share: 0,21) | 202 (Share: 0,4) | 468 (Share: 1,03) | 92 (Share: 0,19) | 1.351 (Share: 2,3) | 2231 (Share: 4,08) | 1319 (Share: 2,61) |
During the meeting, it was agreed to further strengthen the relations between BOTAS and EGAS.
“Within this framework, discussions were held on natural gas and LNG trading opportunities, cooperation on natural gas infrastructure and underground storages, sharing of technical information and experience.” it was said in an official statement.
In 2022, Türkiye ranked sixteenth for primary energy consumption globally, ahead of more advanced economies, such as Italy, Spain, and Australia. Between 2001 and 2021, Türkiye’s overall energy consumption more than doubled, making it the country with the fastest-growing energy demand in the Organisation for Economic Co-operation and Development.
According to the Energy Market Regulatory Authority (EMRA) in 2023, spot LNG imports accounted for 19.63% of total natural gas imports in 2023 for Türkiye.
However, spot LNG imports were realized from 11 different countries. Among these countries, the U.S. ranked first with a 49% share, while Egypt ranked second with a 16% share.
| Country Name | Quantity |
| USA | 4.011,41 |
| Egypt | 1.319,22 |
| Russian Federation | 789.66 |
| France | 696.26 |
| Nigeria | 468.56 |
| Norway | 275.63 |
| Trinidad and Tobago | 237.04 |
| Brazil | 186.18 |
| Mozambique | 104.68 |
| Belgium | 102.87 |
| Oman | 91.53 |
| General Total | 8.283,05 |
Türkiye’s trade with Egypt
The political dispute did not affect the economic and trade relations between Egypt and Türkiye, which have been going strong for the last decade.
In 2021, Türkiye’s exports to Egypt surged by 44%, reaching $4.5 billion, while bilateral trade volume increased by 39%, surpassing $6.7 billion.
Turkish investments in Egypt reached an estimated $2.5 billion in 2021, and the volume of trade between the two countries almost tripled in the period between 2007 and 2020, reaching $11.4 billion in 2020.
Turkish companies in sectors as diverse as electronics, textiles and medical supplies have continued to operate unaffected by the diplomatic dispute. The economic relationship is seen as stable, despite being influenced by regional political crises and global economic challenges. The upward trend continued in 2022, with Turkish exports to Egypt rising by 28% in the first four months of the year.
In particular, Egypt’s exports to Türkiye also doubled in proportion to its total exports during the period of political tensions, jumping from 3.54% in 2005–2012 to 6.2% in 2013–2020.
| Türkiye’s Exports to Egypt (Billion $) | Türkiye’s Imports from Egypt (Billion $) | |
| 2013 | 3,3 | 1,7 |
| 2014 | 3,4 | 1,5 |
| 2015 | 3,2 | 1,3 |
| 2016 | 2,8 | 1,4 |
| 2017 | 2,5 | 2 |
| 2018 | 3,2 | 2,2 |
| 2019 | 3,5 | 1,9 |
| 2020 | 3,1 | 1,7 |
| 2021 | 4,5 | 2,2 |
Türkiye’s exports to African countries are crucial. In the first quarter of 2024 reached $4.5 billion. Egypt topped the list with $872 million in exports, recording a 28% year-on-year growth. In March 2024 alone, Türkiye’s exports to Egypt increased by 52.2%, further solidifying Egypt’s position as the largest African market for Turkish goods.
| 1 – 31 August | 1 – 31 July | 1 January – 31 August | ||||
| 2023 | 2024 | 2023 | Change | 2023 | 2024 | Change |
| 35.205,21 | 57.727,53 | 35.268,04 | %63,7 | 300.476,83 | 374.878,44 | %24,8 |
On August 1, 2023, the Minister of Trade, Republic of Türkiye professor Dr. Omer Bolat and Turkish Exporters Assembly (TIM) President Mustafa Gültepe attended the meeting held with Egyptian Minister of Trade and Industry Ahmet Samir Saleh and his delegation.
During the meeting, issues regarding the development of trade and economic relations between Egypt and Türkiye were discussed.
In Türkiye’s total overseas direct investment stock of $46.5 billion, Egypt ranks 19th with $294 million.
On the other hand, Egypt ranks 36th among foreign countries investing in Türkiye, with $45 million out of the $130 billion in foreign direct investment. These numbers explain why this is one of the key reasons why Egypt matters to Türkiye this much.
Turkish textile industry migrate to Egypt
The Turkish textile sector continues to migrate to Egypt. Not only giant companies but also textile manufacturers in Anatolia are moving to Egypt because of cheap costs. According to reports, many factors such as electricity, labor, natural gas, land and cotton are extremely cheap in Egypt.
According to Kerim Ulker, a writer for Dunya newspaper, companies from Anatolia are increasingly investing in Egypt, a favored destination for Türkiye’s major textile manufacturers such as Eroglu, Yesim Tekstil, and Iskefe Holding.
Ahmed Samir, the Egyptian Minister of Industry, announced that they are in discussions with the Kahramanmaras-based Sirikcioglu Group, which plans to invest $700 million.
Exclusive Economic Zone (EEZ)
The declaration and delimitation of an Exclusive Economic Zone (EEZ) in the Eastern Mediterranean is crucial for the coastal states in the region because of several factors. The Mediterranean, with its unique geographical characteristics, already faces various maritime boundary disputes.
Türkiye has a coastline stretching 1,577 kilometers (979.9 miles) from Fethiye to Samandag on the Syrian border.
Egypt has become a key country in the Eastern Mediterranean after signing an EEZ delimitation agreement with Southern Cyprus in 2003.
Türkiye has made it a foreign policy priority to develop bilateral relations with Egypt, the country with the second longest coastline in the Eastern Mediterranean, and eventually sign an EEZ delimitation agreement.
In 2019, Türkiye and Libya sealed a maritime demarcation deal for their boundaries in the eastern Mediterranean waters. Libya has been a key point of contention between Egypt and Türkiye over the years because of the countries’ political stances and the parties they support in Libya.
Over the years, with Türkiye’s normalization steps, Türkiye and Egypt have become key negotiators in the Libyan conflict to resolve Libya’s divided political structure.
In response to Türkiye and Libya’s maritime agreement, Egypt and Greece signed an agreement in August 2020 establishing an EEZ between the two countries in the eastern Mediterranean. Turkish Foreign Ministry released a statement during that time saying: “A maritime boundary between Greece and Egypt does not exist. Concerning Türkiye, the so-called maritime delimitation agreement signed today is null and void. This understanding will reflect on the ground and at the table.”
Libya has triggered many tensions in North Africa, sometimes to the point of confrontation. Who will dominate the Mediterranean and who will process and exploit the natural gas has become a major point of conflict. During these years, Egypt and Greece frequently organized military exercises and conducted joint training.
One prime example of the normalization was the statement by the former Egypt Foreign Minister Sameh Shoukri, in which he implicitly acknowledged that the Turkish-Libyan maritime delimitation agreement was in Cairo’s favor, despite Egypt’s public opposition to the deal.
Now with the normalization, the EEZ can be discussed between the two nations.
A maritime agreement with Türkiye could add 21,500 square kilometers to Egypt’s EEZ agreement, creating opportunities for new energy exploration and foreign investment.
However, Egypt might find itself in a difficult position to maintain a policy of balance between Türkiye and Greece.
