Eng. Sherif El Sayad, Head of the Export Council for Engineering Industries, to

عمر عبدالحميد3 نوفمبر، 2025

0 3 دقائق

 Egypt’s engineering industries exports saw notable growth of 12% by the end of August 2025 compared to the same period last year, recording $4.187 billion, up from $3.746 billion in 2024, despite highly turbulent regional conditions.

Eng. Sherif El Sayad, Head of the Export Council for Engineering Industries, expressed optimism about continuing this growth, projecting an increase of approximately 15% by the end of the year. This would push the sector’s exports to surpass the $6.5 billion barrier—a figure he described as “an unprecedented record in the sector’s history.”

He added that the Council had initially set a plan to reach $7 billion in exports by the end of this year, but geopolitical tensions in the region prevented its achievement. The target is now to exceed the $7 billion mark during 2026.

In exclusive statements to “Commodity Market,” El Sayad confirmed that this growth is driven by several positive factors, most notably an increased export awareness among Egyptian companies following the dollar shortage crises and rising import costs. Companies have begun to realize that external expansion represents a financial and strategic lifeline.

He explained that the influx of foreign direct investment into the Egyptian industrial sector, particularly in engineering industries, has played a key role in enhancing production and competitive capacity. “Foreign investments often target exporting no less than 50% of their production, which directly reflects on foreign trade indicators,” he stated.

He pointed out that the recent stability of the exchange rate has restored confidence among manufacturers and exporters to enter into long-term contracts, after periods of fluctuation hindered strategic planning, which negatively impacted the sector’s ability to achieve sustainable growth.

Local and Regional Challenges 

Despite the growth indicators, El Sayad pointed to persistent challenges, chiefly political tensions in neighboring countries such as Libya, Sudan, and Gaza. These have directly affected navigation in the Red Sea and created bottlenecks in supply chains, both for importing components and exporting products to regional markets.

He indicated that if companies’ dues are disbursed within just three months as announced, it would have a significantly positive impact on the competitiveness of Egyptian products.

Deepening Local Manufacturing 

A fundamental challenge highlighted by El Sayad is the importation of approximately 50% of production components for engineering industries. This raises the cost of the final product and negatively affects price competitiveness in foreign markets.

He affirmed that the solution lies in localizing the manufacturing of essential components, prioritizing those widely used across multiple sub-sectors within the engineering industry. He emphasized that this approach must be supported by a clear national plan and partnerships with the private sector and foreign investors.

The Head of the Export Council believes that the end of the war in Gaza and the signing of a peace agreement will have a direct positive impact on trade, not only in neighboring markets but also on international supply chains. This is especially true with the return of stability to Red Sea navigation. He added, “Global shipping companies are re-evaluating supply routes after a period of tension, which will lower logistics costs and increase the competitiveness of the Egyptian product.”

Expansion into Latin America

El Sayad reviewed the most prominent events organized by the Council this year, which included international exhibitions, trade missions, and hosting buyer delegations from abroad. He confirmed that the Council’s goal is not limited to marketing but also supports new companies in entering the export world through training and qualification programs.

He revealed that the Council aims to expand into Latin American markets next year, in cooperation with the Ministry of Trade and the Export Development Authority. This aims to leverage the “Mercosur” agreement, which allows Egyptian products to enter key markets such as Brazil, Argentina, and Uruguay duty-free. He continued, “These markets are still not sufficiently explored by Egyptian exporters, which requires specialized marketing strategies to penetrate them.”

“Gulfood Manufacturing 2025″… An Egyptian Window to the World

Regarding Egypt’s participation in the Gulfood Manufacturing 2025 exhibition in Dubai, El Sayad confirmed that the Council has been working for months to support and prepare Egyptian companies, especially in the sectors of machinery, production lines, and food packaging. He described these as promising sectors with technological potential and advancements in manufacturing quality.

He explained that participation in the exhibition aims to convey a developed image of Egyptian industry to the world, demonstrating that the local product is no longer just a cheaper alternative but has become a serious competitor in terms of quality and technology. This is particularly true with the involvement of Egyptian designers and engineers in locally developing machinery, instead of merely engaging in assembly or complete importation.

In this context, El Sayad praised the significant growth in demand for Egyptian machinery and equipment in the Gulf, as Gulf countries are witnessing industrial expansion that opens promising horizons for Egyptian exporters. He noted that competition with Turkish and Chinese products compels Egyptian companies to develop their technology, improve manufacturing quality, and adhere to delivery timelines.

He stressed that localizing the manufacturing of components used in machinery, such as motors and electrical parts, will be a decisive factor in reducing costs and elevating the sector’s competitive level.

شريف الصياد: قطاع الالآت والمعدات واعد وتوطين الصناعات المغذية ضرورة لزيادة التنافسية