Egypt pledges to resolve operational hurdles for French firms to spur $1.56bn investment portfolio
Egyptian Minister of Investment and Foreign Trade Mohamed Farid has pledged to streamline regulations and resolve operational hurdles for French businesses during a meeting with the heads of 22 major French companies to discuss expansion plans and boost exports.
The meeting, attended by French Ambassador to Cairo Eric Chevalier, addressed the operational challenges facing French businesses and explored avenues to deepen local manufacturing. France is the largest European investor in Egypt outside the oil and gas sector, with a cumulative investment of $8.5bn over the past 20 years and a direct investment stock of $1.56bn as of June 2025. Over 200 French companies currently operate in the Egyptian market.
Farid stated the government is implementing an institutional and legislative reform programme encompassing company formation procedures, capital increases, and convertible bonds. He noted that the ministry is also redeveloping export rebate programmes and advancing digital transformation to reduce processing times.
Ambassador Chevalier noted that French companies view Egypt as a regional production and export hub, adding that the swift organisation of the meeting reflected the government’s commitment to dialogue with the business community.
During the open session, company executives outlined their sector-specific expansion plans and regulatory requests, beginning with the technology and telecommunications sector. The CEO of Orange Egypt highlighted a recent frequency license acquisition for 5G services and plans to expand cell towers, praising the government’s digital transformation efforts. Automotive technology firm Valeo, which employs over 3,000 Egyptian engineers in research and development, requested flexibility in export support programmes for tech services to reflect value-added metrics rather than solely headcount.
Within manufacturing and heavy industry, Saint-Gobain detailed €250m in investments since mid-2023, including a €161m flat glass project to supply the automotive and solar sectors. Alstom Egypt discussed its new industrial complex in Borg El Arab for railway components. Both companies, along with Air Liquide, emphasised the need for a comprehensive local supplier database to integrate Egyptian firms into global supply chains. Bel reported a 90 per cent localisation rate for packaging materials, aiming for 100 per cent within two years, while noting that 80 per cent of its output is exported to 19 countries.
Discussing energy and infrastructure, TotalEnergies highlighted challenges with multiple permits and lengthy approval cycles for fuel stations, prompting Farid to request a detailed memorandum to simplify the process. EDF Power solutions expressed interest in upcoming renewable energy production and storage projects. Meanwhile, RATP Dev, operator of Cairo’s Metro Line 3 and the Light Rail Transit, outlined plans to localise spare parts manufacturing and use Egypt as a regional hub to export expertise.
Addressing finance, logistics, and services, Crédit Agricole reviewed its recent acquisition of a consumer finance company, calling for simplified merger and acquisition procedures to support growth. CMA CGM, which holds investments in Alexandria’s Tahya Misr terminal and the October Dry Port, requested a review of transit certificate procedures and asked that dry ports be treated as seaports for final customs clearance. Bureau Veritas noted growing demand for its testing and certification services, reflecting increased Egyptian compliance with European export standards.
The meeting concluded with Farid directing the formation of joint working groups to address the companies’ proposals, with a priority on resolving short-term regulatory hurdles to enhance Egypt’s position as a regional investment and export hub.
