The government is expected to approve Sunday a plan to promote and expand economic ties with Egypt

The government is expected to approve at its weekly meeting on Sunday a plan to promote and expand economic ties between Israel and Egypt. The plan was formulated following visits by the Prime Minister, the Foreign Minister, the Minister of Economy and the Minister of Energy to Egypt over the past year, as well as the Egyptian Foreign Minister's visit to Israel.
Among the goals of the program: assistance to significantly increase long-term and broad-ranging engagements between companies, organizations and governments of the two countries; Significantly increase knowledge exports, civic technologies and implementation and assimilation of production methods which have a high potential to contribute to the economies of the two countries; Increase within three years the total volume of trade between the countries (excluding natural gas exports and tourism) to an amount of at least $ 700 million, and diversify the types of products imported from Egypt to Israel in the following areas: raw materials for industry and construction in Israel, fresh agricultural products and other food products.
As part of the government's preparations to promote and expand economic ties with Egypt, a joint task force will be established for government ministries to coordinate the government's effort for economic cooperation between the countries and work with the corresponding government agencies in Egypt, coordinating and directing all steps to promote and expand economic ties with Egypt. The task force and the National Economic Council in the Prime Minister's Office will formulate a plan for the implementation of the steps in this decision and will monitor the achievement of its goals in cooperation with the relevant ministries.
The program will formulate goals for strengthening economic ties between the countries and for increasing trade, strengthening and expanding the 2004 Approved Industrial Zone Agreement (QIZ); To strengthen mutual investments and to strengthen joint research and development projects. The mission team will work with the Egyptians to coordinate the operation and convening of the Joint Economic Committee for Israel and Egypt once a year. The committee will discuss reducing trade barriers related to security and safety aspects. Subcommittees will also be set up to address specific areas that will serve as mechanisms for the effective resolution of trade problems, the promotion of joint projects and the simplification and facilitation of trade between countries.
The plan also stipulates that the Ministry of Transportation will work to develop and upgrade the infrastructure at the Nitzana overland goods terminal so that it will support the expansion of the ability to transport various types of goods and streamline the process of moving goods in transit.
In the field of aviation and tourism, the Minister of Transport, in coordination with the Ministry of Foreign Affairs and Tourism, will promote a dialogue between the aviation authorities of the two countries in order to amend the aviation agreement so that airlines, destinations and flight frequencies are added. The government will encourage the operation of direct routes between other airports in Israel (Haifa and Eilat) to Sharm and various destinations in Egypt.
Israel will be integrated into Egyptian plans for the development of the water sector in Sinai in general and water for agriculture in particular through desalination, treatment of agricultural drainage water and sewage and implementation of advanced irrigation methods. Joint projects in the field of aquaculture, agricultural crops, collaborations in the fields of renewable energy, environment and climate, nature conservation in the marine environment, imports of agricultural products and food products from Egypt and more will be promoted.
The Ministry of Economy will work to reduce trade barriers and streamline imports from Egypt by land and through seaports of raw materials for the construction, industrial and food industries. Israel sees Egypt as an important and competitive source for importing raw materials and food for the needs of the Israeli economy on the one hand and for acquiring knowledge services and technologies from Israel for the development of advanced infrastructure and industries in Egypt.
The volume of annual trade with Egypt excluding tourism and natural gas exports stood at $ 330 million in 2021 and reflects a significant increase of over 60% compared to 2020.