Egyptian-American economic relations in the light of the current changes

The relations between Egypt and the United States will continue to be characterized by great consensus on various regional and international issues, 100 years after the inauguration of diplomatic relations between the two countries, which are based on mutual respect and non-interference in the internal affairs of either country, while achieving their common interests.

The United States seeks to strengthen the strategic partnership with Egypt on all political, military, economic and environmental levels in light of Cairo’s growing role regionally and internationally, and its being an influential party that preserves the stability of a region riven by political turmoil.

In terms of economic relations, the United States is a vital economic partner, as it shares strong commercial and economic relations with Egypt, in addition to its commitment to providing annual economic assistance to it. The two countries also seek to provide real opportunities and mechanisms that allow to increase bilateral trade and investments, develop human capital skills, and increase the number of tourists.

The Strategic Forum for Public Policies and Development Studies “Draya” issued a policy paper that monitors in numbers the volume of the economic relations between the two countries, and the most prominent stations in the process of joint economic cooperation. The paper achieved the following results:

• The total value of Egyptian exports to the world amounted to 43643.5 million dollars in 2021, compared to 29322.9 million dollars in 2020.

– The value of Egyptian exports to the United States amounted to 2536.4 million dollars in 2021, compared to 1632.3 million dollars in 2020.

-The total value of Egyptian imports from the world reached $83,475 million in 2021, compared to $70,436.8 million in 2020.

-The value of Egyptian imports from the United States of America amounted to 6144.4 million dollars in 2021, compared to 4768.8 million dollars in 2020.

– The volume of Egyptian exports to the United States of America represents 5.8% of the total Egyptian exports to countries all over the world.

-Egyptian imports from the United States represent 7.4% of the total Egyptian imports from all countries of the world.

-The volume of trade exchange between Egypt and the United States of America will reach 8680.8 million dollars in 2021, compared to 6401.1 million dollars, an increase of more than 37%.

-Net direct US investments in Egypt amounted to $1.625 billion in 2020/2021, compared to $1.412 million in 2019/2020, an increase of 15%.

-The number of American companies operating in Egypt reached about 1576 companies.

-The United States is the third largest investor in Egypt in 2020/2021 after the European Union and Italy.

Egypt is the largest recipient of US investment in Africa and the second in the Middle East, as its investments in Egypt amounted to 7% of the total incoming investments.

The value of Egyptian remittances working in the United States increased from $975.2 million in the fiscal year 2019/2020 to $1.4 billion during the fiscal year 2020/2021, achieving an increase of 40.9%.

The value of remittances from Americans working in Egypt amounted to $42.8 million during the fiscal year 2020/2021, compared to $49.9 million during the previous fiscal year, a decrease of 14.1%.

The dimensions of Egyptian-American relations at the economic level are evident through the following axes:

the trade exchange

The value of Egyptian exports to the United States of America achieved a remarkable increase in 2021 by 55.4%, reaching 2536.4 million dollars in 2021, compared to 1632.3 million dollars in 2020. This is in light of the increase in the total value of Egyptian exports to the countries of the world by 48.8%, reaching 43643.5 million dollars in 2021, compared to $29,322.9 million in 2020.

The value of Egyptian imports from the United States of America amounted to 6144.4 million dollars in 2021, compared to 4768.8 million dollars in 2020, an increase of 28.8%. The total value of Egyptian imports from the world reached $83,475 million in 2021, compared to $70,436.8 million in 2020, an increase of 18.5%.

Ready-to-wear exports ranked first at $1,207.8 million in 2021 compared to $817.7 million in 2020, an increase of 47.7%.

Exports of carpets, floor coverings and iron came in second place with a value of 206 million dollars, or 8.1% of the total Egyptian exports to the United States of America, followed by plastics and its products with a value of 167.5 million dollars, and 6.6%, then glass and its products with a value of 90.3 million dollars, and 3.6% of the total exports.

In terms of imports, grains, oil fruits, medicinal plants and fodder came in the first place, reaching $1645.6 million in 2021, compared to $1539.9 million in 2020, an increase of 6.9%.

Fuel, mineral oils and their distillation products came in second place with a value of one billion dollars, or 16.6%, followed by pharmaceutical products with a value of 447.8 million dollars, and 7.3%, and aircraft and their accessories with a value of 418 million dollars, and a rate of 6.8% of the total Egyptian imports from the United States of America.

In total, trade between Egypt and the United States of America amounted to $8680.8 million in 2021, compared to $6401.1 million, a rise of more than 37%, reflecting the positive growth (upward trend) in trade between the two countries.

Joint investments

The net direct US investments in Egypt amounted to one billion and 625 million dollars in 2020/2021, compared to one billion and 412 million dollars in 2019/2020, an increase of 15%. It should be noted that the net American investments in Egypt during the first half of the fiscal year 2018/2019 amounted about one billion and 70 million and 600 thousand dollars, compared to one billion and 18 million dollars during the same period of the fiscal year 2017/2018, an increase of about 5.2%.

According to the data issued by the Central Agency for Public Mobilization and Statistics in the issue of “Egypt in Figures .. Economy 2022”, the United States is the third largest investor in Egypt in 2020/2021 after the European Union and Italy, while Egypt is the largest recipient of American investment in Africa and the second in The Middle East, as the percentage of its investments in Egypt amounted to 17.7% of the total incoming investments.

Top American companies operating in Egypt include Mars, Coca-Cola, Pepsico, Visa, MasterCard, General Electric, General Motors, Microsoft, IBM, Google, Uber, Amazon, Chevron, Schlumberger, Exxon Mobil, Marriott, Buckle and Cargill.

The Egyptian market is the largest and most important market in Africa for American exports, and the fourth largest market for American products in the Middle East, as well as the United States being one of the most important investors in Egypt, ranking Egypt 56th as a trading partner of the United States of America.

Most of the American investments in Egypt are concentrated in the energy, petrochemical and manufacturing sectors, and the American institutions are currently seeking to expand investment in Egypt in other sectors such as the real estate sector, telecommunications, manufacturing, tourism, agriculture and financial services. And more than 1,400 Egyptian companies outside the oil and gas sectors work in cooperation with investors from the United States and provide job opportunities for tens of thousands of Egyptians.

Tourism

American tourism recorded a significant development between 2018 and 2019, as the total number of tourists coming from the United States of America reached 349.6 thousand tourists in 2019, compared to 287.8 thousand tourists in 2018, an increase of about 21.5%. And the number of tourist nights spent by Americans amounted to about 5.1 million tourist nights in 2019, compared to 4.6 million tourist nights in 2018, an increase of 11.1%.

Technical Cooperation

During 2020, the Ministry of International Cooperation signed 7 bilateral agreements with the US Agency for International Development to inject new grants totaling $112 million within the framework of the US economic assistance program, to support the sectors of health, basic and higher education, science and technology, agriculture, governance, and trade and investment.

In conclusion, these developments and other Egyptian policies and practices called for the American strategic and security planning institutions to re-evaluate Egypt’s role in the region, and came to the conclusion that it has become an active element at the Arab, Mediterranean and African levels that cannot be ignored.. Hence, the United States of America seeks to strengthen aspects of cooperation It is expected that the Egyptian-American relations will witness a growing coordination on all levels during the coming period.