• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Middle EastEuropean Union
Europe

Egypt’s crisis becomes Europe’s business problem as inflation soars and Suez revenues collapse

By
Sam McNeil
Sam McNeil
and
The Associated Press
Down Arrow Button Icon
October 22, 2025, 10:01 AM ET
President of Egypt Abdel Fattah El-Sisi speak to the press before a meeting with U.S. President Donald Trump at the Sharm El Sheikh International Congress Center October 13, 2025 in Sharm El-Sheikh, Egypt.
Egyptian President Abdel-Fattah el-Sissi will meet with several European leaders during the Brussels summit. Chip Somodevilla/Getty Images

Egypt and the European Union will hold their first summit on Wednesday in Brussels where leaders will discuss security, trade and migration as well as stability in Gaza.

Recommended Video

Egyptian President Abdel-Fattah el-Sissi, European Commission President Ursula von der Leyen and European Council President António Costa are expected to announce increased European economic assistance to Egypt and Egypt’s admission to the EU’s Horizons research incubation program, a 175 billion euro (about $202.7 billion) fund for scientific research and innovation in fields from quantum technology to the space industry.

New deals amid regional tensions

The summit comes as the 27-nation bloc has sought to forge new trade and security deals amidst geopolitical tumult sparked by the combative policies of U.S. President Donald Trump and export controls from Chinese President Xi Jinping.

Part of its approach is a so-called Pact for the Mediterranean in which the EU seeks deeper integration with countries from Morocco to Turkey, including offering European aid in exchange for efforts to slow migration to Europe.

Egypt’s economic woes

Egypt is weathering soaring inflation, as well as instability from the still-smoldering war in neighboring Gaza.

El-Sissi told Costa and other world leaders last week that U.S. President Donald Trump’s Mideast proposal, which aims at ending Israel’s two-year war in Gaza, represents the “last chance” for peace in the region and reiterated his call for a two-state solution, saying Palestinians have the right to an independent state.

The EU is Egypt’s largest trading partner. During the signing of a joint declaration last year, Brussels announced a 7.4 billion euros (about $8.6 billion) aid package for cash-strapped Egypt in the form of loans, investment and support for specific programs such as migration.

The deal injected much-needed funds into the Egyptian economy, which has been hit hard by years of government austerity, the coronavirus pandemic, the fallout from Russia’s full-scale invasion of Ukraine and most recently, the Israel-Hamas war in Gaza. Houthi attacks on shipping routes in the Red Sea have also slashed Suez Canal revenues, which is a major source for foreign currency, by forcing traffic away from the canal and around the tip of Africa. Both Brussels and Cairo have serious concerns over migration.

Europe and Asylum-seekers

Arrivals of asylum-seekers and other migrants fleeing conflict and poverty in the Middle East and Africa for Europe over the past decade helped fuel rising far-right populism and led to stricter border controls that have drawn heavy criticism from human rights groups.

Before the Wednesday summit, the EU’s top diplomat Kaja Kallas met with el-Sissi in Brussels, where he told her that “Europe hasn’t been significantly affected by illegal immigration” because Egypt had thwarted launches since 2016 of many boats of migrants, according to a statement from the president’s office.

El-Sissi should press the EU to do more for Gaza, said Eve Geddie, director of Amnesty International’s European Institutions Office. At the same time, Von der Leyen and Costa should press the former military leader to stop “rampant arbitrary detentions, unfair trials and harsh prison sentences of critics,” she said.

Egypt faces its own migration pressures. While in recent years it has become a point of transit for those attempting the dangerous Mediterranean Sea crossing to Europe, Egypt has for decades been a refuge for migrants from sub-Saharan Africa trying to escape armed conflict and crippling poverty.

Egypt, whose population is 116 million, says there are 9 million migrants in the country, including about 900,000 who are registered refugees and asylum-seekers with the U.N. refugee agency. El-Sissi is also expected to meet King Philippe I of Belgium during his visit.

___

Associated Press writer Samy Magdy contributed to this report from Cairo.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Sam McNeil
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Middle East

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

Latest in Middle East

Middle EastU.S. military
U.S. forces attack Islamic State targets in Syria in ‘a declaration of vengeance’ for ambush that killed Americans
By Konstantin Toropin, Ben Finley, Aamer Madhani and The Associated PressDecember 20, 2025
6 days ago
Trump
North AmericaVenezuela
‘They took all of our oil not that long ago. And we want it back’: Trump demands Venezuela return seized assets
By David Klepper, Aamer Madhani and The Associated PressDecember 18, 2025
8 days ago
Middle EastMilitary
Attacker who killed US troops in Syria was a recent recruit to security forces and was suspected of Islamic State ties prior to shooting
By Abby Sewell and The Associated PressDecember 14, 2025
12 days ago
Middle EastMilitary
U.S. troops have been on the ground in Syria for over a decade. Here’s the back story and present situation after the deadly Islamic State attack
By Abby Sewell and The Associated PressDecember 14, 2025
12 days ago
Middle EastMilitary
Trump pledges retaliation after 3 Americans are killed in Syria attack that the U.S. blames on the Islamic State group
By Samar Kassabali, Bassem Mroue, Seung Min Kim and The Associated PressDecember 13, 2025
13 days ago
Kushner
Middle EastM&A
Paramount’s Mideast backing likely runs deeper than $24 billion
By Adveith Nair and BloombergDecember 11, 2025
15 days ago

Most Popular

placeholder alt text
Retail
Trump just declared December 26th a national holiday. What's open and closed?
By Dave SmithDecember 26, 2025
11 hours ago
placeholder alt text
Real Estate
Mark Zuckerberg gifted noise-canceling headphones to his Palo Alto neighbors because of the nonstop construction around his 11 homes
By Dave SmithDecember 25, 2025
1 day ago
placeholder alt text
Success
As millions of Gen Zers face unemployment, CEOs of Amazon, Walmart, and McDonald's say opportunity is still there—if you have the right mindset
By Preston ForeDecember 26, 2025
12 hours ago
placeholder alt text
Economy
Even if the Supreme Court rules Trump's global tariffs are illegal, refunds are unlikely because that would be 'very complicated,' Hassett says
By Jason MaDecember 21, 2025
5 days ago
placeholder alt text
Retail
Trump just declared Christmas Eve a national holiday. Here’s what’s open and closed
By Dave SmithDecember 24, 2025
2 days ago
placeholder alt text
Success
Meet the millennial father of six who rebuilt his life through the trades—and questions America's obsession with college
By Eva RoytburgDecember 24, 2025
2 days ago

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.