• 41 Egyptian companies agreed to establish the Arab Alliance for Industrial Investment to expand into Arab markets and participate in regional reconstruction projects.
• The alliance will boost Egyptian exports, starting in Libya, then expanding to Iraq and the UAE, offering investor support services.
• Iraq has invited Egyptian and Gulf investors to invest in various sectors attracting interest from Talaat Moustafa Group, Hassan Allam, Orascom, and Elsewedy Electric.

Arab Alliance for Industrial Investment

What is happening? 41 Egyptian companies have agreed to establish a new joint-stock company called the “Arab Alliance for Industrial Investment.” With the aim of expanding into Arab countries and participating  in reconstruction operations.

What will this company do? In an interview with Ashraq Business, Mohamed El Bahi, board member of the Federation of Egyptian Industries, indicated that this new company will work on increasing Egyptian exports to Arab states and promoting local products. Furthermore, he elaborates that the initiative will start with Libya followed by opening offices in Iraq and the UAE.

Additionally, it aims to provide comprehensive services to investors including promotion, construction and dealing with government entities. Moreover, Bahi emphasizes that the company will consist solely of private sector representatives.

Why does this matter?  This comes amid the Egyptian government seeking to enhance exports in order to contribute to foreign currency inflows, aiming to reach USD 145 billion by 20230. 

Last year, exports helped offset the decline in dollar inflows caused by disruptions in Suez Canal revenues due to navigation disturbances in the Red Sea. According to a statement from the Ministry of Investment, Egypt’s merchandise exports increased by approximately 12%, reaching USD 40 billion in 2024. 

Reconstruction

What is the company’s role in reconstruction? Over the past two years, Egypt has faced economic crises that heavily impacted the availability of foreign currency in the market which put pressure on local businesses. As a result, major Egyptian companies have expanded into foreign markets, particularly in the GCC, Iraq and Libya.

Additionally, in recent years, the economic ties between Egypt and Iraq have grown as Iraq has invited Egyptian and Gulf investors to inject capital into various sectors. 

Notably, there have been geopolitical tensions in the neighboring regions to Egypt which presents an  opportunity for this alliance of companies, especially with the Arab League Summit adopting Egypt’s plan for the reconstruction of Gaza.

What is the reconstruction plan? The reconstruction plan is estimated to cost around USD 53 billion over the duration of five years. The first phase involves the removal of rubble and the  construction of 200,000 housing units. Furthermore, the second phase valued at USD 30 billion includes the construction of an additional 200,000 housing units, a commercial port and beachfront hotels.

According to the Iraqi Minister of Planning, following the country’s war devastation, it requires USD 88.2 billion to implement reconstruction projects.  

Some of the Egyptian companies interested in Iraq’s reconstruction efforts include Talaat Moustafa Group, Hassan Allam, Orascom and Elsewedy Electric. 

U.S. Initiative for Gaza

Recently, Steve Witkoff, the special envoy of the U.S. President Donald Trump to the Middle East, revealed plans for an upcoming summit bringing together real estate developers and regional urban planners to discuss the U.S. administration plans for Gaza.

In this context, Egyptian businessman Hisham Talaat Moustafa, in an interview on MBC’s Egypt “Al Hekaya”  proposed a USD 27  billion development project in Gaza that would avoid mass displacement. He further explained that he believes this plan would improve living conditions in the territory and help ease tensions.