Egypt deepens trade ties with Israel amid local boycott pressure

Egypt is strengthening its commercial partnership with Israel, marked by a surge in the trade of gas and other commodities, despite mounting pressure from local business leaders advocating for a boycott.

The intensification of economic relations positions Egypt as the second-largest Arab trading partner of Israel, according to data from Israeli sources and the World Bank.

Egyptian exports of agricultural products, minerals, and construction materials to Israel surged to $350 million by July 2024, with projections to reach $700 million by mid-2025.

At the same time, Egyptian imports of Israeli natural gas have seen a marked increase, growing from 850 million cubic feet per day in April 2024 to 1.2 billion cubic feet in August, as part of a bilateral agreement aiming to expand gas flows to 1.6 billion cubic feet per day by 2026.

The strengthening of trade ties has prompted some Egyptian business leaders to push the government to dissuade local firms from participating in boycott campaigns targeting Israeli products.

Proponents point to economic opportunities linked to the Qualified Industrial Zone (QIZ) agreement, which allows tariff-free access to U.S. markets for Egyptian products if a portion of production involves Israeli companies.

Global brands operating in Egypt, including KFC and McDonald’s, have reported significant losses due to local boycotts, while companies like Pepsi and Coca-Cola have rolled out extensive marketing campaigns to counteract negative impacts.

Meanwhile, sales of imported luxury goods and clothing have plummeted amid declining purchasing power, sparking concerns over the lack of viable local alternatives, particularly in food and household products.

Activists, however, continue to advocate for a robust boycott strategy. They emphasize the importance of developing quality, affordable local alternatives to ensure the movement does not become a burden on consumers.

Abdul Qader Yassin, secretary of the Palestinian Popular Resistance Committee, has called for a broader mobilization through media and religious platforms to deepen support for the Palestinian cause.