Planning Minister Highlights BRICS+ Expansion at St. Petersburg Economic Forum

H.E.Dr. Hala El-Said, Minister of Planning and Economic Development, participated in a session titled "Expansion of BRICS - New Opportunities for Economic Cooperation" during her participation in the 27th St. Petersburg International Economic Forum held in St. Petersburg, Russia, from June 5 to 8.

During her participation, Dr. Hala El-Said referred to the global trade growth expectations of international institutions for 2024 and 2025, projecting a moderate upward trend, reaching 3.3% in 2024 and 3.6% in 2025, according to the International Monetary Fund report.

El-Said added that the ongoing changes in the global landscape are leading to significant shifts from the West to the East and Far East. BRICS+ countries represent nearly 30% of the global workforce, 45% of the world's population, 25% of global trade, 40% of global oil production, and 28% of global GDP.

El-Said continued that after expansion, the BRICS+ group offers significant trade and export opportunities across various sectors, contributing to shifts in trade patterns, which is the main reason driving companies to explore alternative trading partners in the near future. She added that this trend creates a window for national companies to establish stronger trade relations within emerging economies.

Regarding production and supply diversification, El-Said explained that BRICS+ countries can assist member and non-member states, with particular consideration for the African continent, especially the New Partnership for Africa's Development (NEPAD), which has achieved 51% of its aspirations. It has also contributed to reducing reliance on traditional markets and mitigating risks in case of economic downturns. She added that NEPAD is a pioneering socio-economic program of the African Union.

El-Said continued that, according to studies, trade among BRICS countries has grown significantly in recent years, exceeding $350 billion in 2022, indicating the expansion of trade volumes following the expansion. She added that Egypt's trade volume with the global market exceeded $100 billion.

El-Said noted that Egypt enjoys political stability and is geographically situated on the Red Sea and the Mediterranean Sea, at the crossroads of Africa, Asia, and Europe. Egypt's economic relations with BRICS members have a long history, with the total trade relations between Egypt and BRICS+ countries amounting to approximately $25 billion, according to national statistics, across various sectors.

El-Said highlighted Egypt's unique geographical location and its vision to become a hub for trade, logistics, and smart logistics services, with more than EGP 10 trillion in infrastructure investments. She added that cooperation in manufacturing, joint ventures, and technology transfer between Egyptian companies and BRICS+ companies has also contributed to further diversification and a competitive manufacturing sector in Egypt.

Regarding investment opportunities in key sectors for Egypt and BRICS+ members, El-Said explained that through enhancing trade missions, signed trade agreements for each member state, and incentives such as infrastructure projects and sustainability, the following sectors are highly valued from the perspective of the Egyptian business community: fintech solutions, artificial intelligence, engineering products, growing infrastructure projects, and the semiconductor industry. She noted that Egypt has a long history in manufacturing and electrical technology with newly established industrial zones and economic cities, such as the Suez Canal Economic Zone.

On Egypt's stance on international trade and strategic goals in this regard, El-Said pointed to the adoption and approval of sustainable development goals related to trade during the 48th session of the United Nations Statistical Commission, leading to the establishment of the "Trade Observatory," providing extensive data on trade indicators, enabling policymakers to explore the links between trade and strategic goals. El-Said explained that Egypt achieved 95% in the first indicator of export diversification.

El-Said added that Egypt's share of exports to GDP rose from 6.7% in 2015 to 10.7% in 2022, with Egyptian service exports to GDP reaching 5.7% in 2022.