Revolution in Egyptian Industry

Transforming Raw Materials into Products, and Products into Exports
The success of Egypt’s new industrial strategy depends not only on increasing production and export figures, but also on enhancing domestic value added and reducing dependence on imported industrial inputs.

The target of achieving $100 billion in non-oil exports by 2030 should therefore not be viewed merely as an export figure. The fundamental question is how much of Egypt’s exported products are based on domestically produced raw materials, intermediate goods, and local suppliers.

Building the Production Chain in Egypt

The foundry industry is one of the key examples of this transformation. Numerous sectors, ranging from automotive and machinery to energy and heavy industry, depend on cast metal products. The global foundry market, valued at approximately $190 billion, demonstrates the significant economic potential of this sector.

Egypt needs to modernize its existing foundry capacity through advanced technologies while strengthening the production of alloys, refractory materials, metalworking products, and machinery components. This would allow the country to meet the needs of domestic industries while expanding exports to regional markets.

The agreement between BME and China's CATL concerning electric battery production also highlights the importance of emerging technological industries. However, the real contribution of such investments will depend not only on manufacturing finished products in Egypt, but also on developing local suppliers and strengthening the country's technological infrastructure.

Concrete Steps Must Be Taken

The first priority should be to identify which industrial inputs are imported, in what quantities, and which of these products can be manufactured competitively in Egypt.
Supply chain connections should be established between major industrial facilities and local small and medium-sized enterprises (SMEs). Technology transfer, vocational training, and compliance with quality standards should also be actively supported.
Financing for industrial investments should focus not merely on buildings and facilities, but increasingly on machinery, automation, and production efficiency.
Alongside export targets, Egypt should monitor the share of locally sourced industrial inputs and changes in its dependence on imports.

Cooperation between Türkiye and Egypt presents an important opportunity in this process. Türkiye's experience in machinery manufacturing, metalworking, and industrial component production can be combined with Egypt's manufacturing capacity and access to regional markets.

The Ultimate Goal: Added Value

The success of Egypt's industrial transformation cannot be measured solely by the number of new factories established or the growth of export figures.
What truly matters is building the supply chains behind production, strengthening local enterprises, and expanding technological capabilities.

An industrial structure capable of processing raw materials, manufacturing intermediate goods, and delivering finished products to global markets will provide Egypt with more than export revenues. It will also generate employment, technological advancement, and sustainable competitiveness.