Khaled Saad: 'Made in Egypt' is the Key for Chinese Companies to Access Global Markets

Khaled Saad, Secretary General of the Automobile Manufacturers Association, stated that the trend of Chinese companies establishing factories within Egypt could create mutual gains for both sides, especially with the potential to use the Egyptian market as a production and export hub for several foreign markets. Saad explained that a company producing locally benefits from the country's geographical location and its trade agreements with various nations and blocs, while Egypt gains new investments, job opportunities, and increased industrial activity.

Local Added Value and the Role of Supporting Industries

Saad added that transforming part of Chinese products into goods manufactured inside Egypt raises local added value, particularly when coupled with the use of local components and the operation of Egyptian factories and feeder industries, instead of limiting the relationship to importing the final product for sale. He pointed out that export is a vital element in the industrial investment equation; a factory serving both the domestic market and foreign markets simultaneously possesses greater opportunities to increase production volume and achieve the economic feasibility required for continued expansion.

Growing Investment Cooperation Between Cairo and Beijing

This vision comes amid increasing interest from Chinese companies in direct investment in Egypt. The General Authority for Investment and Free Zones recently confirmed continued efforts to strengthen the Egyptian-Chinese investment partnership and encourage more Chinese companies to enter the market. The recent visit of Chinese President Xi Jinping witnessed the signing of over 20 cooperation documents, including a memorandum of understanding between the General Authority for the Suez Canal Economic Zone and the Chinese Ministry of Commerce, signaling the expanding scope of economic and industrial cooperation.

A local factory is no longer just an assembly line. It serves as a gateway to the entire region's markets, especially with the free trade agreements signed with African, Arab, and European nations. This is what makes localizing Egypt's automotive industry more attractive to Chinese investments seeking cost-effective export platforms close to target markets.