Plenković and Madbouly in Cairo: Croatia is Egypt's strategic ally in the EU

“Croatia and Egypt have signed important agreements on culture, investments and cooperation between the ports of Rijeka and Alexandria,” announced Prime Minister Andrej Plenković in Cairo on Tuesday, while his Egyptian counterpart called Croatia Egypt's strategic ally among the members of the European Union.

“Croatia and Egypt need to strengthen cooperation in energy and tourism,” said Prime Minister Andrej Plenković in Cairo on Tuesday, after the two Mediterranean countries signed three cooperation agreements.

"In Cairo, I discussed the security situation in Europe and the Middle East with Egyptian Prime Minister Mostafa Madbouly, and stressed that the European Union is committed to achieving a just peace in Ukraine. We also discussed strengthening cooperation between Croatia and Egypt, especially in the areas of energy, tourism and strengthening investment potential. As Mediterranean countries, we have many common interests that we want to achieve," Plenković announced on X.

On Tuesday, Croatia and Egypt signed an Executive Program for Cultural Cooperation between the two governments for the period 2024-2027, a Memorandum of Understanding between the Ministry of Economy and the General Authority for Investment and Free Zones of the Arab Republic of Egypt, and an Agreement on Cooperation between the Ports of Alexandria and Rijeka.

The Egyptian Prime Minister pointed to the excellent diplomatic relations between the two countries, frequent meetings, and expressed gratitude for Croatia's support.

“Croatia is Egypt's strategic ally in the European Union,” Mostafa Madbouly emphasized.

Madbouly and Plenković last met in January in Davos, and the Egyptian Prime Minister also recalled President Zoran Milanović's visit to Egypt in February 2023.

The Prime Minister is accompanied by Minister of Culture and Media Nina Obuljen Koržinek, Mufti Aziz Hasanović, the President of the Meshihat of the Islamic Community in the Republic of Croatia, as well as a Croatian economic delegation.

At the business forum, Plenković recalled the new composition of the European Commission, in which Dubravka Šuica was assigned the Mediterranean portfolio.

“Šuica is preparing her first visit to Egypt, she can really help strengthen the strategic partnership between Egypt and the European Union, especially in order to implement the agreement on macro-financial assistance for the reforms and development of Egypt in the total amount of five billion euros,” said Plenković.

On Wednesday Plenković will visit Alexandria.

Croatia and Egypt can strengthen cooperation in energy, construction and wood industries

Energy, power engineering, construction, wood and defense industries are some of the areas for strengthening economic cooperation between Croatia and Egypt, it was emphasized on Tuesday at an economic forum in Cairo, reported the Croatian Chamber of Commerce (HGK), which is organizing the forum and the departure of representatives of about 20 companies to Egypt.

“For Croatia, Egypt is a significant market with more than 110 million inhabitants, which offers our companies numerous opportunities for business cooperation," said the President of the Croatian Chamber of Commerce Luka Burilović.

He believes that representatives of companies from the energy, power, construction, wood and defense industries, and other sectors, will establish quality contacts and increase trade between the two countries.

“Along with the intensification of trade,” as he said, “in recent years there has been a greater influx of Egyptian labor, mostly in the construction sector. Last year, Egypt was among the top ten countries from which foreign workers come to Croatia.”

For example, in 2020, 22 work permits were issued in Croatia for workers from Egypt, and in 2024 the number of permits rose to more than 6.5 thousand. Construction entrepreneurs say that Egyptian workers are experienced bricklayers, tile layers, and roofers.

A cooperation agreement signed between the ports of Alexandria and Rijeka

Prime Minister Andrej Plenković said that today they signed three agreements on cooperation in the fields of culture and investment, and on cooperation between the ports of Alexandria and Rijeka.

“Connecting the Suez Canal and strategically important Egypt with the port of Rijeka, one of the deepest in the northern Adriatic, will strengthen Croatia's strategic position as a transport and energy hub in that part of Europe,” emphasized Plenković.

The Croatian Chamber of Commerce notes that the EU is Egypt's most important trading partner, accounting for 25 percent of Egypt's total trade with the world. Egypt mainly exports fuels and minerals, chemicals and agricultural products to the EU. With the signing of the agreement, the Port of Rijeka aims to become Egypt's entry point to Europe, but also vice versa.

“The Port of Rijeka is already cooperating with clients on the Egyptian market, and its goal is to become the most important entry and exit point for Egypt in Central and Southeastern Europe,” said Board Member Marko Mišković.

The Director of the Croatian electric provider HEP, Davor Paradžik said that they expect the B2B meetings to open up new opportunities for cooperation on energy and infrastructure projects in Croatia and Egypt. “Croatian engineering knowledge,” as he said, “in sustainable technologies and energy efficiency can contribute to the development of both markets.” Their goal is to renew business cooperation with Egyptian companies.

In addition to companies that are expanding and renewing cooperation, the delegation also includes companies that are looking for their first exit to this important market. Tesla is a Croatian company specializing in the digital transformation of education that wants to establish relations with the Egyptian Ministry of Education.

“The solutions that we develop are highly adaptable to the needs of users and are implemented at the level of the entire education system of a country. Our goal is to enable more efficient management of education - at the systemic level and on an individual level, treating it as a key investment in the long-term economic development of a country,” said Tesla Director Andrej Bezjak.

In the first ten months of last year, trade between Croatia and Egypt reached almost 140 million euros. Croatia has been achieving a surplus in trade for years and recording growth in exports. The exceptions were 2021 and 2022, when imports, primarily gas, significantly exceeded exports.

In 2023, exports reached 98 million euros, and in the first ten months of last year 90 million, which is an eight percent increase compared to the same period the year before. Imports in the first ten months of last year, amounting to 48 million euros, were almost 20 percent higher than in the same period in 2023. The total trade in goods in 2023 was 145 million euros.

“It is excellent that today we signed three important agreements on cooperation in the fields of culture, investment and cooperation between the ports of Alexandria and Rijeka. We emphasized the importance of trade between the two countries, the connection of the Suez Canal and the strategic role of Egypt, with the port of Rijeka, one of the deepest in the northern Adriatic, strategic for Croatia's role as a transport and energy hub in that part of Europe,” emphasized Andrej Plenković, Prime Minister of the Republic of Croatia.

“At the business forum, we will strengthen cooperation between the private sectors of our countries. In the field of energy, we are proud of the ongoing cooperation between Egyptian and Croatian companies. Our company in the Adriatic is building a platform with Croatian and Greek companies, and Croatia's INA is participating in oil and gas concessions in Egypt,”said Mostafa Madbouly, Prime Minister of Egypt.

Source: HRT