2025-03-13 19:02:00
Egyptian Imports Increase by 17% Amid Rising Israeli Natural Gas Exports
Overview of Trade Growth
According to data from the Egyptian Central Agency for Public Mobilization and Statistics, trade between Egypt and Israel has experienced a significant boost in 2024, rising by 21.3% to reach $3.2 billion, up from $2.64 billion in 2023. The primary driver of this growth is the increase in Egyptian imports, which surged by 17% from $2.5 billion in 2023 to $2.9 billion in 2024.
Rising Natural Gas Imports
Natural gas remains the principal comp-nt of Egyptian imports from Israel. The Israeli Ministry of Energy and Infrastructure indicates that the share of natural gas exported from the Tamar field to Egypt and Jordan has increased from approximately 28% in 2023 to 34% in 2024, based on a total production of around 10.09 billion cubic meters (BCM). Simultaneously, exports from the Leviathan field also rose, with 87% of the 11.33 BCM produced in 2024 earmarked for export, compared to 81% in 2023.
The energy magazine MEES has reported that the daily Egyptian import rate of natural gas from Israel rose by 18% last year, now averaging around 0.03 BCM per day. This data highlights the significant impact that Israeli natural gas has on bilateral relations between the two countries. In a notable comparison, trade volume between Egypt and Israel was just $127 million in 2020 and skyrocketed to $2.14 billion in 2022, reflecting a growing economic interdependence.
Egyptian Exports to Israel
In addition to increased imports, Egyptian exports to Israel have also experienced a remarkable rise, soaring by 95.6% to reach approximately $300 million. While Cairo has not provided a detailed breakdown of what constitutes the Israeli imports, United Nations trade data from 2023 points to various commodities, including electrical goods, chemicals, plastics, and frozen vegetables.
Economic Challenges Amid Trade Growth
Despite this economic growth, Egypt continues to face significant challenges. President Abdel Fattah el-Sisi has been under pressure following a renewed economic hit due to Houthi rebels in Yemen announcing a resumption of attacks on ships in the Bab el-Mandeb Strait. This strait is crucial for maritime trade, and until the conflict, the Suez Canal, located to the north, contributed approximately 2% to Egypt’s GDP.
The Houthi attacks have prompted major shipping companies to redirect their routes around the Cape of Good Hope, resulting in an estimated loss of $7 billion in revenue for Cairo throughout 2024. While a ceasefire with Hamas provided some hope for a resurgence in shipping traffic, companies have yet to return due to ongoing insurance challenges in the region.
The economic landscape illustrates a complex interplay between growing trade relations and external geopolitical challenges, showcasing the volatility of Egypt’s economic situation despite burgeoning ties with its neighbor Israel.
Tags: Egyptian Imports, Israeli Natural Gas, Trade Relations, Economic Impact, Bab el-Mandeb Strait, Suez Canal, Houthi Attacks, Economic Challenges
