Major Chinese manufacturers such as Haier, Xiaomi, Huawei, Oppo and Geely have strengthened their position in the Egyptian market, leading the home appliance sector and placing a strong emphasis on the commercial and passenger vehicle sector. These companies have achieved greater penetration in the local market, providing high quality products at reasonable prices and offering affordable financing and after-sales services. This trend will not only benefit Egypt, but also China, giving these companies the opportunity to expand in the international market.
This new investment by the Chinese giant in Egypt is mainly focused on the home appliance sector, with Haier as the largest investor. Haier's new clean industrial complex is located in the industrial city of Sadat in the Nile Delta and is estimated to generate 10,000 direct jobs for the region. The complex will offer technical support services for home appliance products, enabling consumers to obtain first-class services at an affordable price.
China's new investment in Egypt is expected to provide an important contribution to the country's economic development. It will enable Egypt to modernise its home appliance industries and allow Chinese companies to establish a local presence in the country, thus improving the quality of life for Egyptians, while providing a vital source of revenue for the government.
This investment will help the North African country to become a world-class home appliance production centre, which will provide opportunities for the Chinese company Haier to expand into new markets. At the same time, China's King Long International announces that it will produce electric buses in Egypt before the end of the year. This is due to the incentives offered by the Egyptian government to attract international investment in the sector, and the rising prices of foreign products. The aim is for King Long International to expand into the Egyptian market and provide more competitive prices in this area.
The China-Egypt Foundation will help companies to improve their products and services, increase their efficiency, expand their markets, as well as develop key skills for the future. In addition, Egyptian companies will benefit from access to new technologies, financial resources and know-how, as well as a database of projects and investment opportunities. This will create a platform for collaboration and dialogue between companies from both countries, allowing China to expand its presence in the Egyptian market and Egypt to benefit from access to Chinese resources and technologies.
The Suez Canal axis offers a unique opportunity for China to take advantage of the international maritime corridor to expand its commercial influence. Mostafa Ibrahim, deputy director of the Egyptian-Chinese Business Council, told The Arab Weekly that there is a trend in China to invest outside the country to improve the poor quality image associated with Chinese products. This involves a focus on high value-added industries, such as electronics, automobiles and other sectors. This investment will directly benefit from the Suez Canal, which will provide a maritime corridor for export to other markets. The project will benefit both Egypt and China, as Egypt will benefit from a fair trade exchange, while China will benefit from an increased presence in international trade. Mostafa Ibrahim stressed the need to overcome bureaucratic obstacles to investment in Egypt, otherwise money will be diverted to neighbouring competitive markets, such as Saudi Arabia and the United Arab Emirates, where local companies have relocated and started operations.
Ahmed El-Gendy, Haier's general manager in Egypt, has confirmed that Chinese electronics and appliance companies are generating strong competition in the country. El-Gendy, a member of the Cairo Chamber of Commerce, told The Arab Weekly that "Haier will not only offer a product, but will also have the backing of being the largest company in its field in the world for the past 14 years. We are planning to launch washing machines, televisions and air conditioners in Egypt early next year,'' to compete with Chinese brands.
Haier is planning an expansion in Egypt by 2025. The company aims to increase production of local components by 60% in the first year, rising to 70% in the second phase. This includes refrigerators and freezers to be exported to Europe, the Middle East and Africa. The company is also promoting the creation of local jobs and partnering with local suppliers to provide the necessary components for production.
Haier's entry into Egypt demonstrates that large projects are feasible in the country, but experts demand that projects of all sizes should also be encouraged. The memorandum of understanding with the Investment Authority allowed Haier to initiate its project under the investment zone system and to take all necessary steps to complete and establish the project according to the implementation schedule. Trade between China and Egypt has increased significantly and Chinese investment in the country has also increased. This suggests that there will be more Chinese investment in the future, but it is necessary for the Egyptian government to encourage all projects of all sizes.