A new alliance formed by 41 Egyptian private companies is set to enhance exports to Arab countries, aiming to support economic growth in the region. The establishment of the Arab Alliance for Industrial Investment is anticipated to be finalized next week, according to Mohamed El-Bahi, a board member of the Federation of Egyptian Industries.

This newly formed entity will focus on increasing Egyptian exports and will establish offices in Libya, Iraq, and the UAE. Additionally, it will provide various services to investors, including promotion and construction, while also coordinating with government agencies.

Cairo is projecting that foreign exchange inflows could reach $145 billion by 2030, despite a significant decline in revenue from the Suez Canal, which is expected to drop by 60 percent, or $7 billion, year on year in 2024. The consultancy firm BMI has noted that the Suez Canal currently accounts for about 10 percent of Egypt’s current account income.

In the final quarter of the fiscal year 2023-24, Egypt’s central bank reported that foreign direct investments from Arab countries totaled $39.5 billion, with the UAE being a leading contributor. Economic growth in Egypt, which is the third-largest Arab economy, is projected to accelerate this year, driven by developments in sectors such as transport, financial services, and housing, as reported by the European Bank for Reconstruction and Development.

Moreover, in February 2024, the Abu Dhabi sovereign wealth fund, ADQ, announced plans to invest $35 billion to construct what is expected to be the “largest new city” in Egypt, further contributing to the nation’s economic growth.