16 January 2018 07:19 PM

Economic Relations

Thursday، 12 November 2015 12:00 AM

The volume of bilateral trade between the two countries has developed considerably from 2005 to 2008, it has increased from 124.4 million USD in 2005 to 143.5 million USD in 2006, ( 15.3 %) , then to 206 million USD in 2007 (43.5 %)

The financial crisis has affected trade relations between the two countries since  2008 , where the bilateral trade volume between the two countries decreased to 163.7 million USD (20.5 % ), and the Egyptian export to Denmark dropped by (13.2 %)

Danish exports to Egypt also decreased by 21.6 %. However, this situation changed in 2009, which witnessed a decline in Egypt's exports to Denmark by 22.8 % , while Danish exports to Egypt increased by 65 %.

The following breakdown shows the movement of trade exchange between the two countries during the period 2007-2009:

The rate of change in 2009 compared to 2008

2009

2008

2007

Statement

-22,8%

17,2

22,3

25,7

Egyptian exports to Denmark

65,7%

234,3

141,4

180,3

Egyptian imports from Denmark

53,7%

251,5

163,7

206,0

Trade volume

--

-217,1

-119,1

-154,6

Trade Balance

 

In this context, there are efforts to narrow the current gap in the trade balance between the two countries through the following actions:

Marketing studies for the Egyptian products

  • Benefiting from the advantages and exemptions offered by the Egyptian-European partnership agreement , and exploring the possibilities to attract some of the Danish firms operating in the field of garments and textiles to manufacture in Egypt and to benefit from the abundance of Egyptian trained manpower.
  • Inviting the Egyptian companies to participate in various international exhibitions in Denmark.
  • Organizing visits to delegations of businessmen between the Egyptian and Danish organizations to get acquainted with the potential of the Egyptian industries.
  • Communicating with the stakeholders on a regular basis.

Danish investments in Egypt

Egypt and Denmark are linked by an agreement to promote and protect mutual investment, which was signed between the Egyptian Ministry of Economy and the Danish Ministry of Development and Cooperation in 1996, and entered into force in January 29, 2000.

Denmark ranks the 21 among foreign investors in Egypt with a capital of 1.420 billion pounds, and contribution of 608 million pounds (around 43). The number of companies established accordingly is about 104 companies.

Below is an updated statistic about the Danish investments in Egypt in 2009, as well as the received contributions by DANIDA:

The rate of change in 2009 compared to 2008

2009

2008

2007

Statement

-22,8%

17,2

22,3

25,7

Egyptian exports to Denmark

65,7%

234,3

141,4

180,3

Egyptian imports from Denmark

53,7%

251,5

163,7

206,0

Trade volume

--

-217,1

-119,1

-154,6

Trade Balance

 
Denmark has expressed its interest in directing more investments to the areas of renewable energy from wind, and projects related to the environment (sewage system - drinking water).
It should be noted that the Mission continues to exert efforts to establish a joint council between the businessmen of the two countries.
 
Contractual Framework

Date of Signature

Agreements

29/10/1973

Agreement on Cultural, Educational and Scientific Cooperation

11/4/1974

Agreement on Fiscal Cooperation

11/7/1974

Agreement on  Economic ,Industrial and Scientific Cooperation

9/2/1989

Agreement on  the Avoidance of Double Taxation

27/6/1994

Agreement on  Establishing Wind Farm in Suez City

27/12/1997

Frame Agreement on Mixed Credit Program

14/10/1998

Agreement on Establishing Regional Arbitration center in Suez Canal area

14/10/1998

Agreement on  Establishing Wind Farm in  Zaafaran Area

24/6/1999

Agreement on the  Promotion and the Protection of Mutual  Investment

December 2000

Agreement on Cooperation in the field of Environment

January 2005

Memorandum of Understanding between the Danish and the Egyptian Confederations of Industries

May 2005

Frame Agreement on Mixed Credit Program (phase 2)

November 2006

Agreement on Establishing a Branch of Mubarak Library in El Zawaya El Hamra.

 

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