JEDDAH: The US has committed $125 million to a new economic cooperation agreement with Egypt, marking the first-ever bilateral Strategic Objective Agreement for Advancing Mutual Prosperity between the two countries.

The deal is designed to strengthen economic cooperation by supporting initiatives across multiple sectors, expanding opportunities for American businesses in the Egyptian market and encouraging private-sector growth, according to a statement by the US Embassy in Cairo.

The pact comes amid expanding trade ties between the two countries, with bilateral trade in goods and services reaching an estimated $16.1 billion in 2025, up 28.9 percent from 2024, according to the Office of the US Trade Representative.

“Under this agreement, the US and Egypt will work together to leverage Egypt’s strategic economic advantages—including its geographic position, large workforce, and growing markets—to expand Egyptian economic modernization, private-sector growth, and opportunities for American businesses,” the embassy's statement said.

The agreement also aims to strengthen Egypt’s self-reliance and ensure that US foreign assistance programs deliver maximum impact, efficiency and accountability, the embassy said.

Agreement targets multiple sectors

The signing ceremony was attended by Minister of Finance Ahmed Kouchouk, Minister of Supply and Internal Trade Minister Sherif Farouk, and Minister of Higher Education and Scientific Research Minister Abdel Aziz Qonsowa.

According to the State Information Service, or SIS, platform, the deal covers economic cooperation in water management, infrastructure, technology, and other development sectors.

“I am proud to stand here today with Foreign Minister Badr Abdelatty and Deputy Foreign Minister Samar El Ahdal as we finalize this agreement,” said Robert Silverman, US Embassy Charge d’Affaires, during the ceremony at the Ministry of Foreign Affairs.

He added that the agreement will generate significant economic growth in Egypt and expand opportunities for UA companies across key sectors, including agriculture, food security, and basic and higher education, as well as healthcare, artificial intelligence, water security, innovation, and workforce development.

Samar Al-Ahdal, deputy minister of foreign affairs for international cooperation, expressed confidence that the deal would further strengthen relations between the two countries.

“I am looking forward to continuing our joint efforts in the times ahead, further strengthening the bonds of our partnership while advancing our shared efforts toward prosperity,” she added.

Nader Zaki, Egypt’s foreign ministry spokesman, said that the agreement aims to support economic growth, create jobs and improve public services in Egypt through cooperation with the US, according to the SIS gateway.

US-Egypt trade hits $16.1bn

Goods trade between the two countries totaled $12.3 billion in 2025, with US exports to Egypt rising 47 percent to $9.4 billion, while imports from Egypt increased 12 percent to $2.8 billion.

This resulted in a US goods trade surplus of $6.6 billion, up 70.1 percent year on year.

Bilateral services trade reached an estimated $3.8 billion, with US services exports rising 6.1 percent to $2.2 billion, while imports from Egypt increased 10.7 percent to $1.6 billion. The US recorded a services trade surplus of $638 million, down 3.8 percent from 2024.

The US Embassy said the agreement, announced on Nov. 4 by Silverman and Abdelatty, was the first Strategic Objective Agreement between the two countries and reflected a strong bilateral partnership built on mutual prosperity.

New deal builds on 1999 TIFA

The new deal builds on an existing framework for economic cooperation between the two countries, which have maintained a Trade and Investment Framework Agreement, or TIFA, since 1999.

The agreement provides a platform for discussions on trade and investment issues and efforts to strengthen bilateral economic ties.