Israel, Egypt to boost economic ties, increase bilateral trade to $700m

Israel and Egypt are moving to strengthen economic ties and hope to reach $700 million in annual bilateral trade in the next three years, says the Economy and Industry Ministry.

Under a new proposed plan, the two countries will jointly help develop the Nitzana crossing, where commercial trade is handled, as a regional logistics center and a joint employment area; engage in R&D cooperation; develop joint projects in the area of green energy; and increase the number of direct flights. The plan will also see Israel increase imports of food and fresh fish from Egypt and export agriculture solutions and technologies.

The two countries are targeting annual trade (excluding tourism and natural gas exports) at about $700 million by 2025, up from about $300 million in 2021, according to the ministry.

Most Israeli exports to Egypt are in the textile sector, with the rest in areas like chemicals, rubber and plastics and other materials. Israel imports agricultural and food products from Egypt, as well as chemicals, electrical machinery, rubber and plastics, and minerals and fuels, the ministry says.

Israel and Egypt signed a peace agreement in 1979 but relations have been frosty at times. The countries maintain close security ties.