Egypt stands at a critical juncture and may reshape its role on the global stage as the world of trade undergoes a seismic transformation. Five emerging trends—service trade growth, supply chain shifts and sustainability, trade digitisation, business-to-business platforms, and embedded finance—are reshaping trade globally, and Egypt’s ability to embrace them will dictate its future in the trade world.

First, the shift toward services and digitally delivered trade has been remarkable. Post COVID, we’ve seen an upswing in demand for digital services, and Egypt, with its commitment to digitizing key sectors, is well-positioned to seize this opportunity. The rise in service trade allows Egyptian firms to expand their reach internationally by overcoming traditional, physical limitations, and geographical borders.

But perhaps the most pressing transformation is in supply chains. No longer fixated solely on cost, companies worldwide are prioritizing flexibility, resilience, and transparency in their supply chain choices. The pandemic was a wake-up call — global trade needs diversification to mitigate risk. Egypt, with its prime location and well-established business ecosystem, is ripe for a new role as a regional hub, providing alternative supply sources for businesses seeking to diversify from Asia. However, this potential hinges on investments in infrastructure to facilitate local sourcing. Notably, sustainability and ESG compliance are increasingly crucial for global investors, making it essential for Egypt to align with these standards to attract international business.

Our conversations with clients reveal two key areas: enhancing exports and promoting local production. Increased exports reduce foreign currency dependency, stabilizing Egypt’s economic landscape. Localizing supply chains — though an investment-heavy, medium- to long-term approach — can shield the nation from future disruptions, making local industries more resilient.

Digitisation remains a challenge, as it requires overhauls in legal frameworks, data sharing, and collaboration among stakeholders. Egypt has made strides through initiatives like Nafeza, the single-window customs portal, which has helped streamline documentation. At HSBC, while that’s happening and as we recognise that’s going to take time, the goal now is to make our own operations and the way we serve our clients more digital. One of the ways we are responding to this challenge is by rolling out HSBC Trade Solutions (HTS), a comprehensive platform that is a holistic transformation of how we process transactions and interact with clients. By year’s end, 95% of our trade transactions in Egypt will be digital, outpacing global averages. This is no small feat, but rather a testament to the adaptability and forward-thinking mindset of Egyptian businesses.

Finally, data validation is transforming business-to-business platforms, as digital platforms continue to evolve. Embedded finance solutions, which offer businesses financing directly through digital platforms, have already taken hold in other regions, and similar solutions will soon reach Egypt. This progress hinges on reliable data quality and trust between buyers and sellers — a challenge we’re addressing by partnering with global platforms to expand financing options.

These trends will significantly shape how we see and conduct trade in the future and Egypt is well-placed to play a significant role in that future.

Rehab Tammam, Head of Global Trade Solutions at HSBC Egypt

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