Joint MFA-Ministry of Economy and Industry press release

An Egyptian delegation arrived in Israel last night as part of the QIZ agreement between Israel, Egypt, and the United States. The delegation’s arrival symbolizes another step in the warming trade ties between Egypt and Israel.

Minister of Economy and Industry Major General Orna Barbivay: “The partnership between Egypt and Israel, including in the economic sectors, will strengthen business ties between the countries and promote economic growth, prosperity, and wellbeing in our region. I welcome the Egyptian delegation’s visit, which will contribute to the promotion of shared interests for both countries”.

For the first time in approximately a decade, a delegation of senior Egyptian industrialists operating within the framework of the QIZ agreement between Israel, Egypt, and the United States is visiting Israel this week. The Egyptian delegation includes twelve leading industrialists and businesspeople in the field of textiles and clothing who will meet with senior officials from the Ministry of Foreign Affairs and Ministry of Economy and Industry, the Manufacturers Association, the Federation of Chambers of Commerce, and the Export Institute. The delegation members will also visit industrial plants and meet with Israeli companies and businesspeople. 
The visit of the Egyptian delegation was initiated by the Israeli Embassy in Cairo, the Ministry of Foreign Affairs, the Ministry of Economy and Industry, the Export Institute, the Manufacturers Association, and the Federation of Chambers of Commerce in cooperation with the Egyptian Ministry of Trade and Industry, with the goal of increasing cooperation and trade volume between Israel and Egypt over the coming years. 

The Qualified Industrial Zone (QIZ) is a preferential trade zone agreement signed in 2004 between Israel, Egypt, and the United States, and facilitates the export of duty and tax-free products from Egypt to the United States so long as the Egyptian product includes 10.5% worth of inputs originating from Israel. 

The Egyptian delegation arrives after having visited a delegation of economic organizations from Israel at the QIZ Conference in Cairo at the end of May. This week’s visit is another step in the warming economic-civilian ties with Egypt, which follow a government decision to promote tangible moves to increase trade with Egypt and remove bureaucratic barriers. 

Oded Yosef, Deputy Director General of the Middle East Division at the Foreign Ministry: “The visit of this delegation of businesspeople is part of the strengthening of ties between Israel and Egypt. Economic cooperation has always been a significant component in the promotion of relations, and the QIZ agreement has a special place in this. We expect that the visit will lead to the expansion of cooperation within the QIZ’s industrial areas, as well as to the expansion of economic, business, and commercial cooperation between the countries”.

Ohad Cohen, Head of the Foreign Trade Administration at the Ministry of Economy and Industry: “The QIZ agreement serves as a basic infrastructure for trade between Israel and Egypt. The market in Egypt is developing, and we welcome their willingness to visit as well as the Egyptian interest in Israeli industry, which represent a further warming of economic ties with Egypt, and we hope to expand cooperation between the countries”. 

Trade statistics: Egypt is a significant trading partner for Israel in the Middle East. The volume of trade between the countries stood at 330 million USD in 2021. The array of exports from Israel to Egypt primarily includes textiles and their associated products (78%), chemicals and chemical industry products (11%), and rubber and plastics (8%) totalling 120 million USD; imports from Egypt include chemicals and chemical industry products (32%), fresh agricultural produce and food products (27%), and machines and electrical and mechanical machinery (17%) totalling 210 million USD.