Egyptian Minister of Investment and Foreign Trade Mohamed Farid has committed to a series of regulatory reforms aimed at resolving operational hurdles for French companies, as seeks to bolster its position as a regional manufacturing and export hub. The pledge followed a high-level meeting in Cairo with executives from 22 major French firms, attended by French Ambassador Eric Chevalier.
France currently stands as the largest European investor in Egypt outside of the oil and gas sector. As of June 2025, the cumulative French investment in the country reached $8.5bn over the past two decades, with a direct investment stock of $1.56bn. More than 200 French companies are currently active in the Egyptian market.
Legislative and Institutional Reform
Minister Farid announced that the government is rolling out a comprehensive reform programme designed to simplify the business environment. Key areas of focus include streamlining procedures for company formation, capital increases, and the issuance of convertible bonds. The ministry is also in the process of redeveloping export rebate programmes and accelerating digital transformation initiatives to reduce processing times for foreign entities.
Ambassador Chevalier emphasized that French firms increasingly view Egypt as a strategic production base for exports. He noted that the rapid organization of the meeting underscored a government commitment to maintaining a direct dialogue with the international business community.
Sector-Specific Expansion and Regulatory Requests
During the session, executives highlighted distinct operational challenges and expansion plans:
- Technology and Telecommunications: Orange Egypt’s CEO cited the recent acquisition of a 5G frequency license as a milestone and detailed plans to expand cell tower infrastructure. The company expressed support for the government’s digital transformation progress. Valeo, which currently employs over 3,000 Egyptian engineers in research and development, requested that export support programmes for tech services be adjusted to prioritize value-added metrics rather than headcount.
- Manufacturing and Industry: Saint-Gobain reported €250m in investments since mid-2023, including a €161m project for flat glass production intended for the solar and automotive sectors. Alstom Egypt provided updates on its new industrial complex in Borg El Arab, focused on railway components. Both firms, along with Air Liquide, called for the development of a comprehensive local supplier database to better integrate Egyptian companies into global supply chains. Bel, a food manufacturer, reported that 90 per cent of its packaging materials are now sourced locally, with a goal of reaching 100 per cent within two years; 80 per cent of its total output is exported to 19 countries.
- Energy and Infrastructure: TotalEnergies flagged difficulties regarding multiple permitting requirements and lengthy approval cycles for its fuel stations. Minister Farid responded by requesting a detailed memorandum from the company to facilitate a simplification of these processes. EDF Power Solutions confirmed interest in upcoming renewable energy and storage projects, while RATP Dev, which operates Cairo’s Metro Line 3 and the Light Rail Transit, outlined plans to localize the manufacturing of spare parts.
- Finance and Logistics: Crédit Agricole, following its recent acquisition of a consumer finance firm, requested simplified procedures for future mergers and acquisitions. CMA CGM, which holds significant stakes in the Tahya Misr terminal in Alexandria and the October Dry Port, requested that dry ports be granted the same status as seaports for final customs clearance and called for a review of transit certificate procedures. Bureau Veritas reported rising demand for its certification services, which it attributed to a growing number of Egyptian firms seeking to meet European export standards.
The meeting concluded with a ministerial directive to establish joint working groups tasked with addressing the specific proposals raised by the companies. These groups are mandated to prioritize the resolution of short-term regulatory bottlenecks to enhance the country’s standing as a regional investment hub.
