The European Union and Egypt held their first-ever bilateral summit in Brussels on Wednesday, pledging to deepen their strategic partnership as the EU announced a new €75m aid package and promised to boost investment in the North African country. The summit, attended by Egyptian President Abdel Fattah Al-Sisi, European Council President António Costa, and European Commission President Ursula von der Leyen, focused on strengthening political and economic ties, with discussions covering regional security, trade, and migration. "Our first bilateral summit will be an excellent opportunity to further deepen our partnership, cooperate in addressing our common challenges and unleash the full potential of our relationship," Costa said. Alongside the summit, Al-Sisi and von der Leyen addressed the EU-Egypt Investment Conference, an event attended by over 400 representatives from more than 60 European and 100 Egyptian companies, as well as 15 international financial institutions. The EU announced a €75m package to promote socio-economic development and inclusive growth in Egypt. The grant is part of a larger macro-financial framework adopted in March 2024, which foresees a total investment of €7.4bn in Egypt over the 2024-2027 period. The EU also announced Egypt's admission to its €175bn "Horizons" fund for scientific research and innovation. In his address to the investment conference, Al-Sisi said the EU is Egypt's top trade and investment partner, accounting for about 27% of its foreign trade and 32% of its foreign direct investment stock in 2024. "I am certain that Egypt today represents a real and tangible opportunity for the European business community, not just a geographically close partner," Al-Sisi said, inviting companies to view Egypt as a "reliable production partner" and a gateway to African and Arab markets. He highlighted his government's economic reform programme, which has resulted in an upgraded credit rating and a GDP growth rate of 4.4% in the last quarter of the 2024/2025 fiscal year. Al-Sisi also pointed to Egypt's strategic location, investment incentives, and political stability as key advantages for European firms, particularly in sectors likepharmaceuticals, automotive, renewable energy, and green hydrogen. For her part, von der Leyen told the conference that the presence of so many business representatives "reflects a simple truth: our societies understand that there are new opportunities because Egypt and Europe are moving closer than ever before." She noted that Europe has for years been Egypt's largest partner, with Egypt's exports to the EU being three times its exports to the United States, India, and China combined. Von der Leyen announced that the EU intends to open its artificial intelligence factories to partners in the southern Mediterranean, allowing Egyptian startups to test their technology and use European computing capabilities. "Let us build a new bridge between Egypt and Europe and cross it together to create a stronger future for both sides," she said. The summit follows the elevation of the relationship to a "Comprehensive Strategic Partnership" in March 2024. The deepening ties come as Egypt's economy has been hit hard by several global and regional crises, including the fallout from the Russia-Ukraine war and, more recently, a sharp drop in Suez Canal revenue due to Houthi attacks on shipping in the Red Sea. Before the summit, Al-Sisi met with the EU's High Representative for Foreign Affairs, Kaja Kallas. The president's office said he reviewed Egypt's role in reaching the Sharm El-Sheikh agreement to end the war in Gaza and its efforts to curb illegal migration, noting that no migrant boats had departed from Egypt since 2016. Kallas praised Egypt's vital role in achieving stability not only in Gaza but also in Sudan and other crisis-hit countries.
