'Over the past five years, the trade turnover between Uzbekistan and Egypt has surged 3.2 times, from $10mn in 2017 to $30.5mn in 2022. At the same time, Uzbekistan's exports to Egypt over the same period soared sixteenfold: from $1.4mn to $23.2mn', Dunyo reports with reference to Alisher Qodirov, the Department Head of the Institute for Strategic and Regional Studies (ISRS) under the President of the Republic of Uzbekistan.
'On February 20-21, the first visit of the President of Uzbekistan, Shavkat Mirziyoyev, to Egypt took place, the significance of which, according to experts, lies in the further development of long-standing relations between Uzbekistan and Egypt at a new level, based on modern requirements', Alisher Qodirov said.
Besides, the Department Head stressed that during the talks, the two presidents broadly discussed the mutual interest in developing trade and investment cooperation.
'The business forum held on the eve of the state visit of the President of Uzbekistan to Egypt was also fruitful, as a result of which more than 20 documents worth more than $1.6bn were inked, which indicates the existence of tremendous opportunities and resources in trade and economic cooperation between Uzbekistan and Egypt. Furthermore, the event contributed to the formation of Egyptian business people's interest in Uzbekistan goods of the non-commodity sector, ensured the establishment of direct contacts between domestic producers and potential Egyptian buyers and investors, and the exchange of information on quality and price indicators of products.
Nevertheless, according to economists, the current scale of bilateral trade and economic relations does not meet the potential of the two countries, which have sufficient opportunities and resources to increase the volume of trade up to ten times.
There are many stimulating factors to raise the level of economic cooperation between states. For example, a favorable environment has been created in Uzbekistan to develop investment cooperation, the possibilities of which are already being used by Egyptian companies. About 30 joint ventures with Egyptian capital operate in the country. Among them is the Solyphar company, which is participating in constructing a pharmaceutical production facility in the Bostanlyk-Pharm free economic zone in the Tashkent region for about $20mn. Organizing the production of drugs against hepatitis C in the Kashkadarya region for $1.4mn is being worked out with One World Pharma. In cooperation with Kapo Agri, a project to create a fish farm in the Namangan region is being implemented with an investment of $1mn. Interest in establishing collaboration with Uzbek partners is expressed by Orascom Telecommunications and Construction, Al Madani Construction, One World, Toshiba-Al-Arabi, Al Suwaidi Electrics, and other large Egyptian companies.
The intensification of long-term industrial cooperation will dynamically develop Uzbekistan – Egypt trade and economic relations.
Egypt is one of the largest economies in Africa and the Middle East. At the end of 2022, the country ranked 37th in the world and 3rd in the African continent in GDP ($404bn). GDP per capita – $3.7 thousand. The growth of the economy in the past year amounted to 3.3 percent.
Agreements have been reached between Uzbekistan and Egypt on creating favorable conditions for attracting mutual investments. To this end, considering the complementarity of the two countries economies, five specific areas of cooperation in the gas chemical, textile, electrical, jewelry, and pharmaceutical industries have been defined. According to these documents, it is planned to create Uzbekistan textile companies in the Egyptian Port Said for subsequent export to African and Middle Eastern countries.
In a short time, Tashkent and Cairo plan to develop and adopt a roadmap to deepen bilateral industrial cooperation. Implementing such projects will become a new growth point for production, cooperation, trade, and economic ties between Uzbekistan and Egypt.
During the visit of the President of Uzbekistan to Egypt, agreements were reached on the joint implementation of green energy projects, the development of optimal transport routes connecting the two regions, and the mutual use of existing free economic zones.
Uzbekistan can export to Egypt goods of electrotechnical, machine-building, metallurgical, chemical and petrochemical, light and food industries, agricultural and other products that are in demand on its market. Likewise, the Arab Republic can supply medicines, medical equipment, furniture, petrochemical products, porcelain, leather, plastic, and other products to Uzbekistan.
In the medium term, the most critical driver for developing trade and investment between Tashkent and Cairo should be the creation of sustainable transport and logistics corridors.
To further encourage trade and investment ties between Uzbekistan and Egypt, the parties also agreed on several practical measures to develop and sign a Preferential Trade Agreement, create a joint Business Council, and hold its first meeting in the second half of 2023 in Tashkent.
Interregional cooperation is of great importance in enhancing trade and economic ties. In this direction, there are already agreements on establishing direct collaboration between the Namangan region and the province of Alexandria.
It should be emphasized that Uzbekistan, due to its geostrategic position, has the opportunity to become a bridge in the export of Egyptian products to the markets of Central Asia. Moreover, with the presence of the Suez Canal, Egypt has favorable conditions for the entry of Uzbek goods to the needs of the Middle East and East Africa.
In this regard, in the medium term, one of the solutions to the problems of diversifying export routes is the development and creation of sustainable transport and logistics corridors, which can become the most critical drivers for the development of trade, economic and investment ties between Tashkent and Cairo', the article reads.
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