Egypt is interested in attracting long—term Indian investments in the industrial sector for the development of production, export growth and job creation. This was stated by Egyptian Minister of Investment and Foreign Trade Mohamed Farid Saleh at a meeting with representatives of Indian business during his visit to India for the 16th BRICS Trade Ministers' Meeting in Jaipur.
The Egyptian side focuses not only on raising capital, but also on joint production, the introduction of new technologies and the production of more complex products.
The illustrative example is already working. One of the largest Indian investors has invested about $1.5 billion in projects in the Port Said area. The company's plants produce caustic soda, polyvinyl chloride, calcium chloride and bioethylene, providing approximately 900 direct and 1,500 indirect jobs.
Capacity expansion was also discussed, including the construction of an ethylene import terminal worth about $150 million. The project should ensure a more stable supply of raw materials for PVC production and reduce production costs.
A separate topic is the production of commercial trucks in Egypt. The Egyptian side discussed with representatives of the Indian automotive industry the progress of negotiations with the Arab Organization for Industrialization. The project is aimed at developing the local automotive industry and supplying Egyptian-made trucks to domestic and regional markets.
For the participants of foreign economic activity, a logistical perspective is read here. Port Said stands at the northern entrance to the Suez Canal, and the industrial cluster next to it exports to all Mediterranean and Middle Eastern destinations. The appearance of new chemical raw materials there and, potentially, locally assembled trucks expands the range of suppliers available without long leverage from Asia.
What a business should do. Importers of PVC, caustic soda and calcium chloride should keep an eye on the Egyptian direction: the logistical leverage from Port Said is shorter than the Asian one, and capacity expansion increases the chances of a competitive offer. The truck project is still under negotiation — there are no specific dates or parameters.
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