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Rampant Inflation and Economic uncertainty Push Turkish Firms to Relocate to Egypt

Turkish companies face growing production costs, high fuel prices, and unpredictable foreign exchange and interest rate policies. Quite a few are therefore thinking about relocating abroad. Egypt, for example, offers far lower labor and production costs than Turkey. What’s more, in April, Egypt removed the need for Turkish citizens to acquire a visa before entering the country. So far, Turkish investments in Egypt this year have totaled $2.5 billion. It is estimated they could grow to $3 billion by the end of 2023. Turkish companies operating in Egypt can engage in tariff-free trade with third-party countries, allowing them to tap into new markets. Today, 35 Turkish industrial enterprises are operating out of Egypt and generating an annual turnover of more than $1.5 billion, the expert said. Turkish companies based in Egypt could tap into a range of different markets, thanks to free-trade deals with US, EU, South America and some African countries, according to Denizer.