Business Talks Likely to Boost Egypt-Turkey

Istanbul, Turkey | April 08, 2010 by D-8 Secretariat

Blossoming trade relations between Egypt and Turkey are set to improve further with a business forum in İstanbul this week, bringing together more than 700 businessmen from the two countries. Both countries seek to reach an increase of $100 mln in business volume

Ongoing bilateral talks between the businesspeople of Turkey and Egypt within the scope of a recent visit may result in deals worth $100 million at minimum, according to the head of a Turkish business association.

A committee of 140 Egyptian businesspeople will have meetings in Turkey until April 10 within the framework of the Turkey-Egypt Trade and Investment Bridge talks.

Speaking Tuesday during a press conference for the visit, Ahmet Ciğer, head of the Federation of Business Life Associations of Marmara, or MARİFED, said the trade volume between Turkey and Egypt jumped significantly within the last three years due to Turkey’s policy of having good relations with its neighbors.

Noting that one of the meeting’s main attendees, the Turkish Confederation of Businessmen and Industrialists, or TUSKON, formed the first trade bridge with Africa in 2006, Ciğer said, “Maintaining good relations with Egypt means good relations with all of Africa as Egypt is the entrance gate for Africa.”

Following Istanbul, the committee will also have bilateral talks in Gebze, İzmit, Düzce and Ankara. “If half of these businesspeople secure contacts within one year, it amounts to a deal of $50 million just for Istanbul. Together with other cities, we expect deals worth $100 million at a minimum within the framework of the talks.”

Ciğer said over 250 Turkish companies are currently conducting business in Egypt, providing employment for 50,000 people.

Investments from Turkish businesspeople in Egypt surpassed $1.5 billion in 2009 yet the Middle Eastern neighbor has a trade volume of $20 billion with the European Union, Ciğer said.

Low production costs in Egypt

Zeki Ekinci, the chairman of the Turkish-Egyptian Businessmen Association, or TÜMİAD, another one of the talks’ key attendees, said Egypt was advantageous because of low production costs.

Agricultural products, oil, chemical materials, textiles, machinery equipment, the automotive industry, medical equipment and iron and steel were the priority sectors for investment in the country, Ekinci said.

Last year, trade volume between the two countries totaled $3.5 billion, said Mongy Aly Badr, the Egyptian commercial consul in Istanbul.

There is a double taxation deal between Turkey and Egypt, Badr said, which prevents an additional tax burden on businesspeople already paying taxes in their homelands.

Badr said Egypt would help facilitate Turkish investment in the country.

“Soon, we will start a yacht tour covering Istanbul, Alexandria, Beirut and İzmir. At the end of this month, Turkish Airlines will launch direct flights to Alexandria. In June, we will organize a business trip to Turkey together with the Egyptian minister of industry and trade. We expect to see Turkish investors in Egypt,” he said.

News Source: Anatolia News Agency/Hurriyet Daily News

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