Finland has identified significant untapped opportunities to deepen trade and investment ties with Egypt, particularly in technology, sustainability and industrial cooperation, Finland’s ambassador in Cairo has said.
Riikka Eela said economic relations between the two countries have been steadily improving but remain far below their potential, especially in services, digitalisation and high-value manufacturing.
Speaking in an interview, she noted that Egypt is already Finland’s largest export destination in Africa but still accounts for less than 0.5 percent of Finland’s global exports, which total about €111 billion (US$119 billion) annually.
Trade between the two countries is modest but growing. Finnish exports to Egypt reached roughly €456 million (US$489 million) in 2024, dominated by forest-based products such as timber, paper and pulp. Egyptian exports to Finland stood at about €88 million (US$94 million), led by fertilisers, chemicals, textiles and agricultural goods.
Despite this, Eela said there is “considerable untapped potential” to expand trade flows in both directions as economic engagement deepens.
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One of the most promising areas is services and digital trade. While services account for about 35% of Finland’s global exports, they make up only around 6 percent of its exports to Egypt — a gap the ambassador described as a major opportunity for growth.
She pointed to strong prospects in ICT, consulting and advanced digital solutions, particularly as Egypt continues to develop its digital economy infrastructure.
Several Finnish technology firms are already active in Egypt. These include Nokia, which operates regional telecom infrastructure projects from Cairo, and KONE, which is involved in major construction and transport systems projects.
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Other companies such as Huhtamäki and HMD Global have also established manufacturing and industrial operations in the country, reflecting growing Finnish interest in Egypt as an investment destination.
Egypt’s strategic location, large domestic market and ongoing economic reforms make it an attractive hub for foreign investors, Eela said, particularly as the country positions itself as a gateway to Africa and the Middle East.
In addition to ICT and industrial manufacturing, healthcare and machinery were highlighted as key sectors for future Finnish investment.
Finland’s expertise in digital public services was also cited as a potential area of cooperation. The ambassador noted Finland’s advanced e-governance systems, including fully digital tax and public service platforms, which could offer models for Egyptian digital transformation efforts.
On sustainability, Eela said Finland is keen to expand cooperation in the green transition, circular economy and clean energy technologies.
She referenced initiatives such as the “One Circle” programme, implemented in partnership with the United Nations Industrial Development Organization (UNIDO), which promotes resource efficiency and sustainable production in Egypt.
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Finnish firms are also contributing to green innovation, including refurbishment and recycling initiatives in the telecommunications sector and advanced energy technologies.
One example is engineering company Wärtsilä, which is developing hydrogen-based power generation solutions that could support Egypt’s long-term energy transition goals.
However, the ambassador also acknowledged that challenges remain, particularly in customs procedures and administrative processes, which can slow down trade and investment flows.
She said recent reforms by Egyptian authorities are encouraging, but further improvements will be needed to fully unlock Egypt’s potential as a logistics and manufacturing hub.
Eela stressed that Finland’s engagement with Egypt is also shaped by its broader cooperation within the European Union, ensuring coordinated trade and investment policy across the bloc.
Looking ahead, she said both countries stand to benefit from stronger institutional cooperation, including through newly established trade councils and embassy-supported business platforms.
Overall, she described the outlook for Finnish–Egyptian relations as “highly promising,” with significant opportunities to expand collaboration in trade, innovation and sustainable development in the coming years.
