41 Egyptian Companies Form Strategic Alliance to Boost Regional Expansion and Aid Reconstruction Efforts

In a significant development for Egyptian businesses, 41 companies have come together to form the Arab Alliance for Industrial Investment. This new alliance aims to broaden the scope of Egyptian exports and enhance economic ties with neighboring Arab countries, while playing an active role in the region’s reconstruction efforts.

According to Mohamed El Bahi, board member of the Federation of Egyptian Industries, the initiative will initially focus on expanding exports to Libya, followed by further expansion into Iraq and the UAE. The goal is to boost the profile of Egyptian products in these markets and offer comprehensive investor support services, ranging from construction assistance to navigating governmental processes.

The alliance, composed entirely of private sector representatives, marks a crucial step in Egypt's strategy to increase its foreign currency reserves. The government is working towards a target of USD 145 billion in exports by 2030, a goal that takes on greater importance as global economic conditions fluctuate. In 2024, Egypt’s merchandise exports rose by around 12%, reaching USD 40 billion, helping mitigate the impact of disruptions to Suez Canal revenues.

This alliance also comes at a time when Egypt is focused on supporting the rebuilding of war-torn regions, particularly in Iraq and Gaza. Iraq, which has faced significant devastation due to conflict, is actively inviting foreign investments to aid its reconstruction. As part of this, major Egyptian companies, including Talaat Moustafa Group, Hassan Allam, Orascom, and Elsewedy Electric, are already gearing up to participate in these efforts.

For Egypt, this collaboration is an opportunity to leverage its expertise in construction and infrastructure development, particularly as regional political dynamics shift. The country’s involvement in the reconstruction of Gaza is another major focus, with a USD 53 billion plan that includes building housing units and critical infrastructure. Additionally, Iraq has outlined a need for over USD 88 billion in reconstruction funding, further opening the door for Egyptian firms to step in and contribute.

This bold move signals Egypt’s readiness to play a more active role in shaping the economic future of the region, while also strengthening its own economy by tapping into new markets and securing vital contracts in the reconstruction sector.