Egypt has entered into an agreement with China’s Sailun Group to establish an automotive tire manufacturing facility in the Suez Canal Economic Zone (SCEZ), involving total investments of $1 billion, according to a Cabinet statement. The construction of this facility is expected to span three years, ultimately achieving an annual production target of 10 million tires. The first phase is set to be completed by 2026.
Egypt’s Suez Canal Economic Zone comprises six ports and four industrial areas situated alongside or in proximity to this vital waterway. The government has bestowed special legal and tax advantages upon the area to capitalize on the international shipping traffic that passes through. The chairperson of the zone indicated last year that substantial investments are being directed toward infrastructure to attract potential investors.
Deepening strategic partnerships
China has been keen to increase its economic engagement in Egypt, with ventures extending into sectors such as ports, green hydrogen, industrial projects, and space exploration.
Recent partnerships and collaborations between Egypt and China in 2025 cover a diverse range of sectors, underscoring a deepening strategic relationship. Both nations have committed to enhancing economic ties, particularly in areas like electric vehicles, electronics, artificial intelligence, water desalination, solar energy, and feeder industries. A significant investment promotion forum is also on the agenda to stimulate joint investments. Chinese investments are notably thriving within the China-Egypt TEDA Suez Economic and Trade Cooperation Zone, which hosts over 160 Chinese enterprises. Egypt’s favorable strategic location and extensive trade agreements further position it as an optimal production and export hub for Chinese businesses.
In terms of financial collaboration, the Central Bank of Egypt and the People’s Bank of China have signed memorandums of understanding (MoUs) aimed at strengthening financial cooperation. This includes initiatives such as local currency settlement, currency swap agreements, issuance of “Panda bonds” in China, linking payment systems, and expanding the presence of banks and electronic payment services like UnionPay in Egypt. The agreements also encompass technical cooperation and debt-swap mechanisms between the two nations.
Infrastructure and energy initiatives
Major infrastructure and energy initiatives are currently in progress, with Chinese firms engaged in landmark projects such as the Iconic Tower and the Central Business District in Egypt’s New Administrative Capital. Transport cooperation features a $10 billion electric train initiative and a 543-km high-speed rail network that will connect Cairo to key regions. Renewable energy projects, including the Benban Solar Park, involve Chinese renewable energy companies contributing significant power capacity.
In the manufacturing and industrial sector, the Suez Canal Economic Zone is envisioned as a $3 billion China-Egypt manufacturing hub that aligns with the Belt and Road Initiative (BRI), emphasizing the expansion of electric vehicle manufacturing and solar panel production as priority areas.
Cooperation in technology and the digital economy encompasses e-commerce, digital payments, and fintech collaborations between UnionPay and Egypt’s Paymob, alongside initiatives in digital innovation.
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Aligning Egypt’s Vision 2030 with China’s Belt and Road
Cultural and educational exchanges are thriving, with the Chinese language and culture being integrated into Egypt’s education system across 30 universities and over 20 secondary schools. Cultural festivals and collaborative archaeological projects further deepen mutual understanding and strengthen ties between the two nations.
Strategically, both countries have reaffirmed their dedication to the comprehensive strategic partnership established in 2014. They aim to align Egypt’s Vision 2030 with China’s Belt and Road Initiative to promote sustainable development. High-level discussions and visits in 2025 have laid the foundation for commemorating the 70th anniversary of China-Egypt diplomatic relations in 2026, with plans to broaden cooperation.
Additionally, defense collaboration has been enhanced, marked by the inaugural joint air force drill between China and Egypt in April 2025. Overall, the recent collaborations between Egypt and China are strategic and multi-sectoral, designed to capitalize on Egypt’s geographic advantages and China’s investment capabilities, driving development across infrastructure, finance, technology, manufacturing, and cultural connections under the auspices of the Belt and Road Initiative and Egypt’s Vision 2030.
