Egypt and Serbia have maintained close political and cultural ties for many decades, but economic cooperation has yet to reach its full potential. The recently signed free trade agreement, expected to come into effect this summer, is anticipated to significantly boost economic cooperation between the two countries. Egypt is focusing on environmentally friendly projects and industrialization, including green hydrogen, solar power plants, and gas liquefaction. The country is also working on major infrastructure projects such as gas pipeline transmission in partnership with Italian companies. Egypt plans to develop its logistics sector by establishing new ports on the Red and Mediterranean Seas and has created free economic zones that attract investments from countries like Russia and China.
With a population of about 110 million, Egypt faces demographic challenges and addresses them by applying a step-by-step approach, including pilot projects and social considerations in economic reforms. The country aims to reduce import dependency by increasing local production and boosting exports to various markets including the Middle East, Africa, the EU, and the USA. Egypt also has a surplus of housing units, primarily owned rather than rented, and is working to reduce unemployment by opening factories producing previously imported goods and by exporting labor. Labor export has been a successful cooperation with Serbia, helping reduce unemployment and increasing foreign exchange remittances, which are vital for Egypt’s economy.
Egypt’s entry into BRICS is viewed as a diversification of economic partnerships rather than distancing from the West. BRICS serves as a forum for improving economic policies and trade among members, fostering new projects and partnerships, but is not an alternative to existing international financial institutions. The global economic landscape is evolving, making creative partnerships essential to attract diverse investments.
Regarding global trade tensions, Egypt is negotiating with the US on tariffs affecting multiple countries. These negotiations have been positive so far, with hopes for a more stable and cooperative global economy.
The conflict in Gaza has had serious negative impacts on the Egyptian and regional economies. Egypt is actively encouraging negotiations between Hamas and Israel and providing humanitarian aid. However, the core issue remains Israel’s refusal to recognize a Palestinian state, which continues to fuel conflict. Egypt supports the Arab peace initiative, which offers normalization of relations with Israel in exchange for the establishment of a Palestinian state within recognized borders. Without progress on this front, regional stability and economic cooperation remain elusive.
Egyptian companies are involved in reconstruction efforts in Libya and have plans for Gaza, Jordan, Iraq, and potentially Syria. These projects leverage Egypt’s expertise in building temporary accommodations and infrastructure rebuilding, with cultural familiarity aiding implementation.
The Free Trade Agreement between Egypt and Serbia opens opportunities for expanded bilateral trade, joint investments, and production. Egypt can serve as a gateway for Serbian products to African markets, while Serbia provides access to the Western Balkans for Egyptian goods. Egyptian incentives include a streamlined “golden license” process for investors, with particular interest in green real estate, cement, raw material processing, and renewable energy sectors.
Trade between Egypt and Serbia has increased by about 45 percent since the start of free trade negotiations, with potential for further significant growth once the agreement is fully implemented. Key sectors for cooperation include agriculture, construction, tourism, IT, energy, infrastructure, and real estate. Both countries are fostering closer IT collaboration, with joint projects underway and visits planned to strengthen ties.
Egyptian companies show interest in investing in Serbia in various fields, and Serbia is seen as an attractive investment destination with incentives and promising projects. The free trade agreement is expected to facilitate these investments and deepen economic ties between the two nations.
