Egypt: European companies sign €40 billion worth of contracts with Egyptian firms in the hydrogen, water and chemical sectors 

The President of the European Commission, Ursula von der Leyen, announced on 29 June 2024 that European companies had signed agreements worth more than 40 billion euros ($43 billion) with Egyptian companies in several sectors.

“Our commitment to supporting Egypt in its reforms has already sparked action from the private sector. The response we have received since last March has been extraordinary. At this conference, European companies are signing more than 20 new contracts or memorandums of understanding with Egyptian partners, worth more than 40 billion euros”, declared the President of the European Executive at an EU-Egypt Investment Forum held in Cairo.

“We have companies in sectors ranging from hydrogen to water management, from construction to chemicals, from maritime transport to aviation and automobiles. You cover all the priorities we have defined in our new partnership. And that’s essential,” she added.

Egyptian President Abdel Fattah al-Sissi, who met with von der Leyen, pointed out that the EU-Egypt Investment Forum “comes at a critical time”, given the successive international and regional crises which, in his words, “require coordination between Europe and Egypt”.

Last March, the EU had already announced a 7.4 billion financing programme for Egypt between now and the end of 2027 as part of a “strategic partnership agreement”, aimed in particular at stemming the flow of migrants crossing the Mediterranean.  

In a press release issued on the sidelines of the EU-Egypt investment forum, the European Commission stated that the macro-financial component represents “the vast majority of the EU’s financial support to Egypt, totalling 5 billion dollars”, out of the 7.4 billion euros announced in March. Macro-financial assistance (MFA) is aid that the EU provides to neighbouring countries facing serious balance of payments problems, in addition to aid from the International Monetary Fund (IMF).

The European funds come on top of the financial boosts Cairo has received since the beginning of the year, including a $35 billion investment from the United Arab Emirates and an additional $5 billion in loans from the IMF.