Why Egypt Wants South Korea to Invest: A Look at the Opportunities

Mostafa Kamel Abdel Basset Mostafa Hadhoud, former governor of Egypt’s Beheira Governorate, urged South Korean companies to deepen industrial cooperation in chemicals and manufacturing.

Hadhoud, speaking to The Korea Herald in Seoul on Friday, emphasized the potential for collaboration. “We import $25 billion worth of chemicals annually. South Korea’s expertise in this industry is remarkable,” he said.

Egypt’s fiber production falls short of demand, Hadhoud explained. The country produces only 25,000 metric tons locally, while its total demand reaches 450,000 tons.

“Korean companies are renowned for producing some of the finest synthetic fibers, such as acrylic, which closely resembles natural silk,” Hadhoud noted, highlighting the opportunity to bridge this supply-demand gap.

While acknowledging the cost-effectiveness of Chinese and Turkish firms, Hadhoud expressed a clear preference for Korean companies. He cited their advanced production facilities and strong expertise in chemicals, polymers, and high-tech industries, pointing to successful projects across Asia as evidence.

Hadhoud identified several additional sectors ripe for cooperation, including tires, fiberglass, recycling, and solar energy. He noted that Egypt imports $2.3 billion worth of tires annually, suggesting that domestic production of even one-third of this amount could present significant investment and growth opportunities.

The former governor encouraged Korean investment through 50-50 joint ventures with Egyptian firms. He highlighted the Arab Organization for Industrialization and past successful collaborations with Hyundai as examples.

“Samsung has established a major factory in Beni Suef, and LG operates a substantial facility in Tenth of Ramadan City. These companies serve as prime examples of successful Korean investments in Egypt,” Hadhoud stated.

Urging Korean companies to broaden their horizons beyond the Gulf region, Hadhoud positioned Egypt as a strategic investment destination. “Currently, our electricity production stands at 53 gigawatts, leaving us with a surplus,” he explained.

“We encourage Korean companies to look beyond Saudi Arabia and the UAE. Egypt welcomes their investment,” Hadhoud concluded. He suggested that joint ventures and development funds like EDCF could help alleviate potential investment concerns.