Egypt
I. Trade and economic relations between the Republic of Bulgaria and the Arab Republic of Egypt
II. Wheat export opportunities for Egypt
– Conditions for participation in Egyptian tenders .
– Requirements to the qualities of the product .
– Reference material for company registration .
III. Business compass
I. Trade and economic relations between the Republic of Bulgaria and the Arab Republic of Egypt
Diplomatic relations between Bulgaria and Egypt were established on February 3, 1926 . They were interrupted twice: in the period from World War II to 1947 and from December 1978 to December 31, 1984.
Egypt occupies an important geostrategic position – it controls the Suez Canal, the most direct waterway between the Mediterranean Sea and the Indian Ocean, and the Sinai Peninsula – the only land link between Africa and Asia.
Egypt is one of the most influential Arab countries, although it is not the most economically developed. The most important branches of the economy are the textile, food and beverage, construction, pharmaceutical and chemical industries, and tourism.
Egypt mainly exports oil and oil products, cotton, textile products, metals and chemical products, mainly to the markets of Italy, India, USA, Saudi Arabia, Turkey and Libya.
The country mainly imports machinery and equipment, foodstuffs, chemical products, wood products and fuels. Leading trading partners from which Egypt imports products are China, USA, Germany, Russia, Ukraine, Turkey and Italy.
As a result of the systematic coordinated efforts of the Office for Trade and Economic Affairs in Cairo, the Embassy of the Republic of Bulgaria and a number of Bulgarian institutions and departments, on April 18, 2020, the Egyptian General Agency for the Supply of Goods (GASS) officially informed the Bulgarian Embassy in Cairo that Bulgaria is registered as a producer of bread wheat , with the right to participate in the state tenders held in Egypt .
EXCHANGE OF GOODS
The exchange of goods in recent years has established Egypt as one of Bulgaria’s major trading partners in the Middle East and the entire African continent. Our country makes consistent efforts to further stimulate cooperation.
In the period 2007 – 2017, the exchange of goods is on a constant rise , reaching at the end of 2016 – 707.4 million USD, and at the end of 2017 – 1156.6 million USD. e. , during which Bulgarian exports increased by 217 million USD. e. Until the end of 2015, the trade balance is positive for Bulgaria.
The huge drop (almost 50%) in Bulgarian exports to Egypt in 2018 is primarily due to Egyptian restrictions and protective customs, tariff and other regulations on foreign imports introduced since 2016 , which caused a huge drop in exports to Egypt as in general and in particular – in exports from EU member states.
For the period of the whole of 2019, bilateral trade reached 1,274.0 million USD ( an increase of over 44% compared to 2018), of which Bulgarian exports amounted to 437.9 million USD. (growth of over 61% compared to 2018) and imports from Egypt 836.1 million USD. (a growth of 36% compared to 2018).
For 2020, a drop of more than 54% is reported in trade between Bulgaria and Egypt, the value of which reaches about USD 582.8 million. e. ( exports to Egypt about USD 189 million and imports to our country in the amount of USD 393.8 million ) compared to 2019.
Our trade with Egypt for 2021 . amounted to USD 590.8 million. of which export 278.3 million USD , imports from Egypt during the period amounted to 312.5 million USD. Our exports to Egypt during the period mainly consisted of Petroleum oils and bituminous mineral oils; Refined copper and copper alloys in unprocessed form; Carbonates; peroxycarbonates (percarbonates); technical ammonium carbonate containing ammonium carbama; Wheat and a mixture of wheat and rye; Refined copper and copper alloys in unprocessed form; Sheets, sheets and strips of copper of a thickness exceeding 0.15 mm
In the first six months of 2022 bilateral trade reached USD 398.1 million, which marked a growth of 22.4% over the same period of 2021. Bulgarian exports for the specified period were worth USD 281 million, which was a significant growth of 64% compared to the same period period for 2021. Imports from Egypt for the specified period were worth 116.9 million USD, and here a decrease of 24.4% is reported.
1. Development of trade between Bulgaria and Egypt
in million USD
| Year | Trade (million USD) | growth/decline, % | Export | rise/fall % | import | growth/decline, % | Balance |
| 2017 | 1156.6 | 63.5 | 528 | 69.7 | 628.6 | 58.7 | -100.6 |
| 2018 | 882.2 | -23.7 | 268.9 | -49.1 | 613.3 | -2.4 | -344.4 |
| 2019 | 1274 | 44.4 | 437.9 | 62.8 | 836.1 | 36.3 | -398.2 |
| 2020 | 582.8 | -54.3 | 189 | -56.8 | 393.8 | -52.9 | -204.8 |
| 2021 | 590.8 | 1.4 | 278.3 | 47.2 | 312.5 | -20.6 | -34.2 |
| I-VI 2022 | 398.1 | 22.4 | 281.2 | 64.7 | 116.9 | -24.4 | 164.3 |
2. Leading goods by import – export
In 2017, Bulgarian exports were mainly formed by petroleum oils and oils from bituminous minerals, other than crude, refined copper, wheat and a mixture of wheat and rye, corn, motor vehicles for special purposes, raw and unprocessed tobacco, etc. and the import from Egypt – from crude petroleum oils, mineral or chemical nitrogen fertilizers, propylene polymers, salt, incl. cooking etc.
In 2018, Bulgarian exports to Egypt consisted of petroleum oils, refined copper, oils and other products, wheat and a mixture of wheat and rye, fittings and the like for pipelines, sheets, sheets and strips of copper with a thickness exceeding, etc. ., and the import from Egypt – of crude petroleum oils, mineral or chemical nitrogen fertilizers, salt, incl. cooking, propylene polymers, etc. For 2018, a drop in trade between Bulgaria and Egypt was reported compared to the same period in 2017, the value of which dropped to 882.2 million USD. e. (export to Egypt 268.9 million USD and import to our country in the amount of 613.3 million USD).
For the period of 2019, Bulgarian exports are formed mainly by petroleum oils and oils from bituminous minerals, refined copper, wheat and a mixture of wheat and rye, sheets, sheets and strips of copper, etc., and imports from Egypt – by raw petroleum oils, mineral or chemical nitrogen fertilizers, propylene polymers, salt, incl. cooking etc.
In 2020, Bulgarian exports to Egypt were formed mainly by petroleum oils, wheat, carbonates, refined copper and copper alloys in raw form, etc., and imports from Egypt – by crude petroleum oils, mineral or chemical nitrogen fertilizers, natural calcium phosphates , propylene polymers, etc.
Our trade with Egypt in the period January-June 2021 . amounted to USD 310.4 million. of which export 157.9 million USD , imports from Egypt during the period amounted to 152.5 million USD.
Our exports to Egypt during the period mainly consisted of Petroleum oils and bituminous mineral oils; Refined copper and copper alloys in unprocessed form; Carbonates; peroxycarbonates (percarbonates); technical ammonium carbonate containing ammonium carbama; Wheat and a mixture of wheat and rye; Refined copper and copper alloys in unprocessed form; Sheets, sheets and strips of copper of a thickness exceeding 0.15 mm
For comparison , our trade with Egypt in the period January-June 2020 amounted to 362.9 million USD. of which export 103 million USD, import is 260 million USD.
Leading positions in trade with Egypt for 2017:
| Export from Bulgaria
| % of total exports | Imported from Egypt
| % of total imports |
| Petroleum oils and oils from bituminous minerals | 75.1 | Crude petroleum oils | 84.6 |
| Refined honey | 8.3 | Mineral or chemical nitrogen fertilizers | 8.4 |
| Wheat and a mixture of wheat and rye | 3.9 | Propylene polymers | 1.6 |
| Corn | 1.3 | Salt, incl. cooking | 0.8 |
| Motor vehicles for special purposes | 0.9 | Flat-rolled products of iron or non-alloy steel | 0.8 |
| Raw and unprocessed tobaccos | 0.9 | Ammonia, anhydrous or in aqueous solution | 0.6 |
Leading positions in trade with Egypt for 2018 :
| Export from Bulgaria
| % of total exports | Imported from Egypt
| % of total imports |
| Petroleum oils and oils from bituminous minerals | 62.8 | Crude petroleum oils | 83.5 |
| Refined copper and copper alloys in raw form | 11 | Mineral or chemical nitrogen fertilizers | 8.5 |
| Wheat and a mixture of wheat and rye | 4.7 | Propylene polymers | 2.4 |
| Fittings and similar piping devices | 3.1 | Ammonia, anhydrous or in aqueous solution | 1.3 |
| Sheets, sheets and strips of copper with a thickness exceeding 0.15 mm. | 2.2 | Vegetables with dry bean peppers, without the casings… | 0.6 |
| Kaolin and other kaolin clays | 1 | Salt (including table salt) | 0.6 |
| Cigars, cigarillos and cigarettes of tobacco or of tobacco substitutes | 0.8 | Flat-rolled products of iron or non-alloy steel | 0.5 |
Leading positions in trade with Egypt for 2019 .
| Export from Bulgaria
| % of total exports | Imported from Egypt
| % of total imports |
| Petroleum oils and oils from bituminous minerals | 62.9 | Crude petroleum oils | 88.5 |
| Refined copper and copper alloys in raw form | 7.9 | Mineral or chemical nitrogen fertilizers | 4.6 |
| Carbonates | 3.4 | Propylene polymers | 3.3 |
| Oils and other products
| 3.1 | Polyacetals, other polyethers and epoxy resins in primary forms; polycarbonates, alkyd resins, allyl polyesters and other polyesters in primary forms | 0.9 |
| Corn
| 2.9 | Salt (including table salt) | 0.5 |
Leading positions in trade with Egypt for 2020:
| Export from Bulgaria
| % of total exports | Imported from Egypt
| % of total imports |
| Petroleum oils and oils from bituminous minerals | 31.4 | Crude petroleum oils | 72.7 |
| Refined copper and copper alloys in raw form | 14.2 | Propylene polymers | 8.0 |
| Carbonates; peroxycarbonates (percarbonates); technically ammonium carbonate containing ammonium carbam | 11.1 | Mineral or chemical nitrogen fertilizers
| 5.1 |
| Wheat and a mixture of wheat and rye Refined copper and copper alloys in raw form | 6.7 | Natural calcium phosphates, natural calcium-aluminum phosphates and phosphated chalks | 4.4 |
| Sheets, sheets and strips of copper of a thickness exceeding 0.15 mm | 4.3 | Petroleum gas and other gaseous hydrocarbons | 2.1 |
Leading positions in trade with Egypt for 2021:
|
| Export from Bulgaria
| % of total exports | Imported from Egypt
| % of total imports |
| Petroleum oils and oils from bituminous minerals | 26.9 |
|
| |
| Refined honey | 22.8 | Mineral and chemical nitrogen fertilizers | 2 | |
| Carbonates: peroxycarbonates, technically ammonium carbonate | 14 | Baths, showers, sinks, bidets, toilet bowls and their seats and covers, toilet tanks and similar sanitary or hygienic articles of plastics: | 0.4 | |
| Sunflower, safflower or cottonseed oil and their fractions | 4.7 | Wool, fine or coarse hair, brushed or worsted | 0.6 | |
| Copper foil | 3.2 | Other plates, sheets, foil, strip and plate of non-porous plastics, not reinforced, laminated, unbacked or otherwise combined with other materials: | 0.3 | |
| Fittings | 2.1 |
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3. Investments
In the field of investment cooperation, an Agreement was signed between the Government of the Republic of Bulgaria and the Government of the Arab Republic of Egypt for the mutual promotion and protection of investments (signed on March 15, 1998, in force on June 8, 2000). Given Bulgaria’s membership in the EU, the Treaty was harmonized with European legislation and an additional Protocol to it was signed during the visit of President Georgi Parvanov to Egypt in April 2008. So far, the volumes of mutual investments are not optimal, therefore, in order to increasing them, companies from both countries should be encouraged to participate in special zones with preferential conditions for carrying out production and business.
According to BNB data, at the end of 2021, Egyptian investments in Bulgaria amount to 4.6 million euros.
According to the Investment Promotion Law and its implementing regulations, there are no certified projects with the participation of the Arab Republic of Egypt to date.
4. Contractual legal basis
- 2009, April 25, signed in Sofia – Memorandum of Understanding for the development of cooperation in the field of oil and natural gas between the Ministry of Economy and Energy of the Republic of Bulgaria and the Ministry of Petroleum of the Arab Republic of Egypt.
- 2008, April 14, signed in Cairo – Memorandum of Understanding on cooperation in the field of defense industry between the Ministry of Economy and Energy of the Republic of Bulgaria and the Ministry of Military Industry of the Arab Republic of Egypt;
- 2008, April 14, signed in Cairo – Protocol to the Agreement between the Government of the Republic of Bulgaria and the Government of the Arab Republic of Egypt for mutual promotion and protection of investments (signed in Cairo on March 15, 1998);
- 2007, April 18, signed in Cairo – Agreement on Economic Cooperation between the Government of the Republic of Bulgaria and the Government of the Arab Republic of Egypt (confirmed by Decision No. 574/03.09.2007 of the Council of Ministers).
- 2003, June 4, signed in Sofia – Protocol for cooperation in the field of construction between the Bulgarian Chamber of Entrepreneurs and the Egyptian Federation for Construction and Construction Contractors.
- 2003, June 4, signed in Sofia – Agreement for the Avoidance of Double Taxation and the Prevention of Income Tax Evasion between the Ministry of Finance of the Republic of Bulgaria and the Ministry of Finance of the Arab Republic of Egypt.
- 2003, June 4, signed in Sofia – Cooperation Agreement between the Bulgarian Export Insurance Agency (BAEZ) and the Egyptian Export Credit Guarantee Company (ECGE).
- 1998, March 15, signed in Cairo – Agreement between the Government of the Republic of Bulgaria and the Government of the Arab Republic of Egypt for mutual promotion and protection of investments. Ratified by law adopted by the National Assembly on 13.05.1998, SG No. 58/1998.
- 1998, March 15, signed in Cairo – Agreement between the export promotion centers in the Republic of Bulgaria and the Republic of Egypt.
- 1998, March 15, signed in Cairo – Agreement between the Government of the Republic of Bulgaria and the Government of the Arab Republic of Egypt on cooperation in the field of tourism. Confirmed by Decision of the Ministry of Justice No. 547/30.08.1999, Promulgation State Gazette no. 72/01.09.2000
- 1998, March 15, signed in Cairo – Cooperation Agreement between the General Organization for Fairs and Exhibitions of the Arab Republic of Egypt and the International Fair in the city of Plovdiv.
- 1998, March 15, signed in Cairo – Cooperation Agreement between the Association of Businessmen of the Republic of Egypt and the Bulgarian Chamber of Commerce.
- 1998, March 15, signed in Cairo – Memorandum of Cooperation between the Federation of Egyptian Industry and the Bulgarian Chamber of Commerce.
- 1998, March 15, signed in Cairo – Agreement on joint cooperation between the BCCI and the Association of Egyptian Chambers of Commerce.
5. Intergovernmental Commission
The Joint Commission for Economic Cooperation (JCC) was created after the accession of Bulgaria to the EU, as a successor to the Bulgarian-Egyptian Joint Commission for Economic, Trade and Scientific-Technical Cooperation, which existed until 2007. The order and name of the Commission are changed with the termination of the bilateral Trade Agreement and the signing of a new Agreement on Economic Cooperation, by virtue of which the present SCIS is also created.
The first session of the Bulgarian-Egyptian intergovernmental Mixed Commission for Economic Cooperation was held in Sofia on January 31 and February 1, 2019.