Egypt's Prime Minister Mostafa Madbouly welcomes China's Premier Li Qiang at Cairo International Airport. AFP
Egypt's Prime Minister Mostafa Madbouly welcomes China's Premier Li Qiang at Cairo International Airport. AFP
Egypt's Prime Minister Mostafa Madbouly welcomes China's Premier Li Qiang at Cairo International Airport. AFP
Egypt's Prime Minister Mostafa Madbouly welcomes China's Premier Li Qiang at Cairo International Airport. AFP

Chinese Premier Li Qiang visits Egypt to deepen ties as US relations sour


Kamal Tabikha
  • English
  • Arabic

Chinese Premier Li Qiang arrived in Egypt on Wednesday for a two-day official visit aimed at deepening economic ties and “strategic co-ordination” between Beijing and Cairo.

The trip highlights Egypt’s growing role within the Brics bloc of emerging economies and its pivot towards diversifying alliances amid strained ties with the US and Israel.

Premier Li was welcomed at Cairo International Airport by Egyptian Prime Minister Mostafa Madbouly and senior government officials. A formal ceremony, including the national anthems of both countries and a review of the Egyptian honour guard, marked the start of a visit focused on enhancing bilateral co-operation across trade, investment and infrastructure.

“China and Egypt, as important members of the Global South, should further strengthen strategic co-ordination to safeguard their common interests,” Mr Li said during a short address upon his arrival.

Egypt’s growing frustration with Israel’s policies in Gaza and its perception of US inaction have driven Cairo to recalibrate its foreign policy. Analysts say Egypt is increasingly prioritising partnerships with China and Brics nations to reduce its reliance on Washington.

The shift has been partly motivated by US President Donald Trump’s staunch support for Israel, including his repeated demands to resettle Palestinians from Gaza into Egypt’s Sinai Peninsula.

Cairo has firmly rejected that plan, viewing it as a threat to its national security and a move that would undermine the Palestinian cause.

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Though Egyptian officials insist that Cairo’s ties with the US remain vital, recent Chinese investments and military co-operation, including the procurement of advanced HQ-9B air defence systems and joint air drills, underscore the shift in Cairo’s orientation.

Premier Li’s visit comes as China’s role grows as a key economic partner for Egypt. Discussions between Chinese and Egyptian officials during the trip are expected to culminate in agreements aimed at expanding Chinese investments in Egypt’s Suez Canal Economic Zone (SCZone), a hub for trade and logistics, according to a cabinet statement on Wednesday.

Under China's Belt and Road Initiative, Chinese companies have played a pivotal role in large-scale Egyptian projects, including Africa’s tallest skyscraper and the country’s first electrified light rail system.

The SCZone’s China-Egypt Teda Economic and Trade Co-operation Zone has become a focal point for these efforts, housing 185 enterprises with a total investment of $3 billion. The recent groundbreaking of a $70 million glass production facility further highlights the zone’s success.

Mr Li’s visit follows his participation in the 17th Brics Summit in Brazil. Egypt’s engagement with the bloc has been growing after joining as a formal member in January 2024.

Cairo’s role has allowed it to take part in initiatives addressing global trade and food security. Two senior Egyptian officials − Mahmoud Momtaz, chairman of the Egyptian Competition Authority, and Aly Abdelkawy from the Ministry of Supply and Internal Trade – attended a Brics-led session on the global grain trade held by the UN on Tuesday, a representative of the Brics Competition Law and Policy Centre told The National.

The session addressed systemic risks in the food supply chain, a critical issue for Egypt given its reliance on grain imports and vulnerability to price volatility, particularly amid growing uncertainty over global inflation.

Egypt's Prime Minister Mustafa Madbouly with China's Premier Li Qiang at the 17th Brics summit in Rio. AP
Egypt's Prime Minister Mustafa Madbouly with China's Premier Li Qiang at the 17th Brics summit in Rio. AP

Egypt’s military modernisation, partly driven by Chinese co-operation, has also become a critical element of its foreign policy. The recent acquisition of Chinese military equipment and the joint Eagles of Civilisation 2025 military drills were viewed in Cairo as proof that China could fill any political vacuum left by a weakened US role in the Arab world.

The strained relationship with Israel, exacerbated by its military presence in Gaza’s Philadelphi Corridor propped up by US support, has left Cairo with few options to safeguard its interests, which analysts say is at the heart of the shift towards Beijing.

Beyond economic and military collaboration, Egypt and China have fostered strong cultural and technological ties. Chinese companies like Huawei have trained tens of thousands of Egyptians in information technology, and educational partnerships have introduced Chinese language courses in Egyptian schools and universities.

Tourism has also flourished, with 300,000 Chinese visiting Egypt last year. To accommodate this influx, Egypt has introduced Chinese language signs at major attractions and increased the availability of Chinese-speaking tour guides.

Air China’s new direct flight between Beijing and Cairo, launched on Wednesday, is expected to further boost people-to-people exchanges.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Roll of honour 2019-2020

Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain

West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership

UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes

UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II

UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby

Updated: July 09, 2025, 3:08 PM