Coffee with Amb. Kamel Zayed Galal: While initial blueprints for the India-Middle East-Europe Economic Corridor (IMEC) appeared to bypass the Suez Canal, Cairo is now positioning itself as the project’s indispensable “anchor.” We spoke with Egypt’s Ambassador to India Kamel Zayed Galal to discuss Cairo’s ambitions to double bilateral trade to USD 12 bn by 2030, overcome bottlenecks with local currency settlement, and establish an Indian industrial zone in the Suez Canal Economic Zone (SCZone).

Below are edited excerpts from our interview.

ENTERPRISEAM: There is a lot of buzz around the IMEC corridor, but Egypt is not yet a participant. How can Egypt contribute to IMEC?

KAMEL GALAL: The IMEC, announced in September 2023 at the G20 Summit in New Delhi, aims to create a multimodal connectivity network (ship-to-rail, energy grids, and digital cables) connecting India to Europe via the UAE, Saudi Arabia, Jordan, Israel, and European ports. Egypt is not yet a formal member, though discussions about our potential integration and value-add have gained momentum in 2025, with proposals in place to take a fresh look into IMEC as a “network” of connectivity hubs rather than a single corridor. Egypt’s strategic geography positions it as a natural catalyst for IMEC, particularly amid disruptions to the original route.

  • Integration with the Suez Canal and ports. The Suez remains a critical global trade hub. Moreover, routing parts of IMEC through Egyptian ports (Port Said, Alexandria, or Ain Sokhna) and the SCZone could provide hybrid maritime-rail multimodal connectivity. This would leverage Egypt’s existing infrastructure for ship-to-rail transfers, improving reliability.
  • Logistics + investment hub. The SCZone offers incentives for foreign investment (special economic zones with tax benefits). Egypt could host joint manufacturing, green energy projects (hydrogen and renewables) or data centers, aligning with IMEC’s energy and digital pillars. It could also extend connectivity to Africa, broadening IMEC’s scope.

Overall, the inclusion of Egypt could transform IMEC into a more robust, multi-route network, and is what analysts believe is the most viable avenue to bring IMEC to life. Egypt is increasingly involved in routing discussions, with diplomatic engagements focusing on joint production projects to meet local and regional demand.

ENTERPRISEAM: How would you describe the state of trade and economic ties between the two countries following this announcement?

KG: India is one of Egypt’s top 10 global partners. Bilateral trade has shown resilience amid global challenges, exceeding USD 6 bn in 2024 and a partial FY 2024-25 estimate at USD 5.2 bn. Indian investments in Egypt total about USD 4 bn across 55 companies, spanning pharma, agriculture, manufacturing, ICT, and renewable energy.

We have set an ambitious target to increase bilateral trade to USD 12 bn within five years, emphasizing diversification into value-added goods, green technologies, and strategic commodities for food security. We have actively invited Indian firms to leverage incentives in the SCZone, positioning it as a gateway to African and European markets via freetrade agreements.

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ENTERPRISEAM: What roadmap is in place to realize this USD 12 bn target?

KG: I genuinely believe that the potential and absorption capacities of both the Egyptian and Indian economies would entail an even more ambitious figure. However, in the short term, the USD 12 bn would be a practical target, achievable by 2030. Progress on achieving this target relies on the institutional mechanisms and sector-focused initiatives to diversify trade and boost investments. Key initiatives to achieve this target include:

  • The Joint Trade Committee — The primary mechanism for trade expansion. The 6th session in 2025 set the initial USD 12 bn goal.
  • India-Egypt Strategic Dialogue — Inaugurated in October 2025 in New Delhi, this high-level platform addresses economic pillars, including trade diversification and investment promotion.
  • Business-to-business + sectoral engagements — Recent examples include the December 2025 interactive sessions in New Delhi with Egyptian delegations (including the governor of Assiut City) targeting collaboration in renewables, chemicals, automotive, pharma, textiles, IT, and agriculture.
  • Investment-led growth — Emphasis on attracting Indian FDI into green energy, particularly multi-bn-USD green hydrogen/ammonia projects, infrastructure, and manufacturing.
  • Emerging facilitators — Discussions on local currency trade settlement and market access improvements.

These steps provide a structured yet flexible framework, relying on periodic dialogues and private-sector activation rather than a rigid, timeline-bound plan. Progress will depend on overcoming challenges like regional instability and trade imbalances with regular reaffirmations signaling sustained political commitment.

ENTERPRISEAM: Which sectors are being prioritized for this trade expansion? Are there specific goods or services Egypt wants India to import or vice versa?

KG: To achieve the target, both countries are focusing on diversifying beyond traditional commodities. Key priority sectors include renewable energy and green technologies; information technology; pharma and healthcare; textiles, apparel, and fashion; chemicals and fertilizers; agriculture and food processing; automotive and manufacturing; and infrastructure and logistics.

These priorities are driven by joint mechanisms and business engagements, aiming for balanced, sustainable growth amid global challenges.

ENTERPRISEAM: India has developed a strong IT and innovation industry. What avenues are the two countries exploring when it comes to innovation, AI, and tech adoption?

KG: India’s robust IT sector, startup ecosystem, and advancements in AI complement Egypt’s ambitions under its Digital Egypt Strategy and updated National AI Strategy (2025-2030), which emphasize ethical AI usage, digital skills, and sectoral adoption.

Key avenues include collaboration on startup incubation, joint hubs, and cross-investments. Both sides aim to connect ecosystems, with Egypt positioning itself as a MENA hub and inviting Indian startups to events or zones like the SCZone.

Egypt seeks Indian expertise in offshoring, software development, and training programs to build digital capacity. This includes attracting Indian firms for electronics manufacturing and advanced ICT services.

We are also exploring the adoption of India’s digital public infrastructure models (payment systems, identity platforms) in Egypt, alongside fintech innovations for financial inclusion as well as the integration of Indian tech in Egypt’s infrastructure, such as port automation and digital transformation in the Suez Canal.

ENTERPRISEAM: Egypt is positioning itself as a green hydrogen and green ammonia hub. Are there any discussions with Indian companies on co-developing renewable or green hydrogen projects or using Egypt as a base to export green fuels to Europe?

KG: Egypt is actively establishing itself as a major hub for green hydrogen and green ammonia production, leveraging the SCZone, its abundant renewable resources, strategic location, and incentives for investors. It positions SCZone projects primarily for export, including to meet EU demand for clean fuels amid decarbonization goals.

Indian companies are among the key international players engaged, driven by Egypt’s geographic proximity to Europe and bilateral strategic ties. Several Indian firms have signed MoUs and framework agreements for large-scale projects in Egypt. The core rationale for Indian companies’ involvement is utilizing Egypt as an export hub, based on Egypt’s strategic location as an efficient shipping point and its potential connectivity of green fuels to Europe, reducing logistics costs compared to India-based production.

ENTERPRISEAM: What are the main non-tariff barriers currently holding back trade, and how does Egypt plan to address them?

KG: The main barrier to trade between Egypt and India is the lack of in-depth knowledge and market analysis regarding the potential for cooperation and collaboration. It is therefore crucial to establish mechanisms of B2B dialogue, in addition to the already existing G2G mechanisms.

ENTERPRISEAM: Egypt offered a specific area in the Suez Canal Economic Zone (SCZone) to Indian investors, with “no taxes, no customs duty.” How are conversations on that front proceeding?

KG: Egypt has repeatedly offered incentives to Indian investors in the SCZone, including proposals for a dedicated Indian industrial zone. These incentives align with the SCZone’s standard benefits in freezones and industrial zones. Within the SCZone specifically, the Indian presence remains limited but is growing, with a handful of firms active or in advanced stages.

Egyptian Foreign Minister Badr Abdelatty stated in October 2025 that Cairo is “keen” on creating such a zone, offering tailored incentives to attract clusters of Indian firms. Ongoing promotions target sectors like renewables, heavy industries, automotive, and AI, with delegations and business forums facilitating new entries.

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