Egyptian Ambassador talks about bilateral ties

Egyptian Ambassador to China Osama Elmagdoub [Photo: Courtesy of Egyptian Embassy in Beijing]

When thinking of the few countries that had ancient civilizations that can be traced back over 5,000 years, China and Egypt come to mind first. Chinese people know about the ancient Egyptian civilizations and famous tourist sites such as the pyramids, Luxor and Aswan, as much as the Egyptians know about the Great Wall and the Forbidden City. The newly appointed Egyptian Ambassador Osama Elmagdoub (Elmagdoub) said that the prospects for cooperation and exchange between Egypt and China are wide and bright, and he wants to spread more knowledge about Egypt to all sectors of China.

Elmagdoub shared with the Global Times (GT) the latest updates on bilateral relations.

GT: In 2014, the bilateral trade volume was $11.6 billion, making China Egypt's top trading partner. Yet in 2016, trade volume dropped to $11.3 billion. Why?

Elmagdoub: Since 2014, cooperation between China and Egypt, the world's oldest civilizations, reached a new high. The volume of trade between the two countries exceeded $11 billion, and the uptrend is expected to continue. But the trade balance is tilted toward China, a situation we are working on together to improve. Recently, Egypt started to export agricultural products such as oranges and grapes, and we are trying to increase the volume of exports in general. Egypt is the third African trade partner with China. The Chinese imports from Egypt have reached $159 million in the first two months of 2017, with a 326.25 percent year-on-year growth.

GT: In September 2016, the Egyptian government revealed that they were planning to borrow 40 billion dollars from China for development. What is the situation so far?

Elmagdoub: With regard to investment, the volume of Chinese investment in Egypt is relatively small; it does not reflect the potentialities of both countries and the deep relations between them. China is the 21st largest foreign investor in Egypt, but I expect this will change in the near future. We are trying to attract more foreign investments, with a special focus on Chinese investors. Egypt adopts a strict economic reform program, and we have recently issued a new investment law. According to estimates, we are moving in the right direction, and this will increase the competitiveness of the Egyptian market and lure foreign investors.

GT: What are the fields the Egyptian government wishes to push forward in bilateral cooperation with China?

Elmagdoub: Egypt aspires to push bilateral cooperation in various fields, such as development and infrastructure projects that align with the Belt & Road Initiative. There are plans to establish a logistics hub at the Suez Canal Corridor area to provide transport and maintenance services to the vessels transiting the canal. China is the largest investor in the Suez Canal Economic Zone. TEDA, a Chinese corporation, is one of the developers of this area. Recently, an agreement was reached with the Egyptian government to expand its allocated area to 7.23 sq km. This giant developer managed to attract many Chinese enterprises, such as Jushi, which is exporting fiberglass to Europe, Africa and the Middle East, and Huawei, the Chinese telecommunications equipment giant, along with many other big names.

There are also Chinese investments and cooperation in other fields such as chemicals, textile, engineering, construction material, technology and remote sensing satellite programs. 

The foreign companies working in Egypt take advantage of the trade agreements between Egypt and the three African blocs (SADC-COMESA-East Africa), which grant the Egyptian products free access to African markets, as well as the Qualified Areas Agreement (QIZ), which grants such products free access to US markets.

The cooperation between China and Egypt has bright and promising prospects. This was evident at the Egyptian-Chinese Investment Forum, held last May by the Egyptian Embassy in Beijing on the sidelines of the Belt and Road Forum. More than 200 major Chinese companies were keen to attend the forum to identify the investment opportunities in Egypt and get a clear idea about the investment climate there.

As further proof of the continued rapprochement between Egypt and China, Egyptian President Abdel Fattah al-Sisi has been invited to attend the BRICS summit that will be held in Xiamen in September 2017. Egypt will also be the guest of honor at the China-Arab States Expo to be held in Ningxia in the same month.

GT: What will you do to attract more Chinese tourists?

Elmagdoub: Tourism is an important pillar of the Egyptian economy. It is a major source of national income and an engine of economic growth and employment. Egypt is endowed with a rich wealth of tourist attractions, such as ancient sites and sea resorts along the Red Sea area and the northern coast. We are doing our best to restore tourism volume to the level it was in 2010.

The number of Chinese tourists that visited Egypt in the first half of this year has nearly doubled compared to the year before. China has become the fourth largest exporter of tourists to Egypt since the beginning of 2017. We expect a further rise in Chinese tourism to Egypt, and the two sides are considering an increase in weekly flights and charter flights between Egypt and China.

Egypt wants to attract more Chinese tourists. The number of outbound tourists reached 122 million in 2016, and we want to attract only one percent of this number to Egypt. In fact, there is an increase in Chinese tourism to Egypt; the number has doubled in the first five months of 2017 compared to the same period of 2016, but we have not reached the target of one million tourists yet. There are more and more accommodations for Chinese visitors. Chinese restaurants are spreading in many places, and there are a lot of Chinese speaking tour guides. Due to the devaluation of the Egyptian currency, a tourist can spend an excellent vacation in Egypt on a reasonable budget.

GT: There is a public concern about whether it is safe to travel in Egypt. Do you have any suggestions for the Chinese tourists traveling to Egypt?

Elmagdoub: The tourism sector is safe in Egypt. The terrorist attacks are limited to a small area in northern Sinai, and the terrorists do not target the tourists. The touristic places are very well guarded and secured. The security standards conform to the international standards in all Egyptian airports. I advise the tourists to follow the rules and listen to the advice of their guides to enjoy their stay in Egypt.

GT: What do you want the Chinese people to know about Egypt? What about the other way around?

Elmagdoub: We want to spread more knowledge about Egyptian culture, tourism potentialities and investment opportunities to all sectors of Chinese society. The events and activities during the Egyptian-Chinese Cultural Year 2016 offered good opportunities to deepen the knowledge of the two peoples about each other, but we still need more and more of these activities and exchanges. Recently, China has signed initial cooperation agreements with 13 countries in the field of film production within the framework of the Belt and Road initiative, which is a step in the right direction to deepen the cultural exchanges between countries along the Silk Road.

As for Egyptians, they now have a wide knowledge about China, thanks to Confucius Institutes that are opening branches in many cities in Egypt. They organize many activities that introduce the Chinese culture, customs and festivals to the Egyptian people. Recently, the dragon boat race was held twice in the Nile River. The Chinese culture is also finding its way to Egypt through soap operas. Since 2014, Egyptian television has started to broadcast Chinese TV series, which give Egyptian an idea about Chinese culture.