Egypt’s Chemical Exports Surge to $4.6 Billion in H1 2025, Bolstering Non-Oil Trade

Chemical sector becomes Egypt’s second-largest non-petroleum export, driven by strong growth in plastics, petrochemicals, and glass shipments.

Egypt’s chemical industry is on a roll. In the first six months of 2025, the country exported $4.6 billion worth of chemicals — a 13% jump from the same period last year — thanks to robust demand across Asia, Europe, and key African markets. That rise has pushed chemicals into the second spot among Egypt’s non-oil exports, giving policymakers and manufacturers a rare bit of good news in a year defined by economic uncertainty.

Plastics, Petrochemicals, Paints: What’s Driving the Growth?

The details tell a much bigger story than just “exports went up.”

Leading the charge were plastics, which saw a 10% increase to $1.09 billion in H1 2025. Not far behind were petrochemicals, which spiked an eye-catching 62% to reach $818 million, likely boosted by both rising regional demand and favorable pricing.

Meanwhile, specialty chemical categories also held their ground:

• Organic, inorganic, and miscellaneous chemicals climbed by 15%, totaling $698 million.

• Detergents rose 9% to $182 million.

• Inks and paints grew 8%, reaching $159 million.

• Glass exports jumped by 16%, hitting $126 million — an often-overlooked segment now punching above its weight.

Together, these gains helped Egypt post one of its strongest half-year performances in chemical exports in over a decade.

Top Markets Are Buying More — A Lot More

Khaled Abu Al-Makarem, head of the Chemicals and Fertilizers Export Council, said Egypt’s top 10 destination markets bought $2.719 billion worth of chemicals in H1 2025 — up from $2.13 billion in the first half of 2024.

That’s a 27% leap. And that’s not minor.

It suggests that not only are existing trade ties strengthening, but new buyers are emerging across unfamiliar markets. While detailed country-by-country data hasn’t been released yet, early reports point to higher-than-usual orders from Turkey, Kenya, Saudi Arabia, and Italy.

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Even smaller markets — like Ghana and Uzbekistan — are reportedly showing signs of higher intake, especially in the detergent and plastics categories.

Why the Surge Matters for Egypt’s Wider Economy

Egypt has had a rough couple of years — inflation, debt pressure, and foreign currency shortages have kept policymakers in a tight spot.

So this export growth, even if it’s just one sector, matters.

Here’s why:

• Chemicals are a value-added product. Unlike raw exports like cotton or minerals, chemicals reflect industrial capacity and production know-how.

• It helps Egypt hedge against oil price swings. As a country still heavily dependent on petroleum-linked revenue, having strong non-oil exports provides much-needed stability.

• It brings in foreign currency. And with Egypt’s reserves under pressure, every dollar counts — especially from sectors outside of tourism or Suez Canal tolls.

More than that, the chemical sector employs thousands directly and indirectly. When exports go up, so do shifts at factories, truck jobs, port activity — it’s a full-chain effect.

A Look at the Sector’s Growth Table

Here’s a quick breakdown of key performance figures for H1 2025 compared to H1 2024:

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Abu Al-Makarem believes this momentum could push Egypt’s full-year chemical exports to $10 billion by the end of 2025 — an ambitious but plausible target if global demand holds.

Risks on the Horizon, But Outlook Still Upbeat

That said, it’s not all smooth sailing.

There are real risks. Shipping costs have stayed volatile post-Red Sea disruptions, and some key African ports have experienced congestion. The Israeli-Gaza conflict also poses ongoing geopolitical uncertainties that could ripple into logistics or raw material imports.

Plus, there’s the question of raw input inflation. Some local manufacturers have reported higher costs for chemical precursors, especially those sourced from Asia.

Still, insiders remain optimistic. Several Egyptian firms are investing in local raw material synthesis to reduce import dependence. There’s also talk of government-backed incentives for exporters — although those haven’t been officially announced.

A mid-sized chemical exporter from 10th of Ramadan City put it bluntly: “The demand is there. If the state gives us power and dollars, we’ll double our numbers.”

What Comes Next for Egypt’s Chemical Industry?

With the sector firmly established as a top performer, all eyes are on what’s next.

Industry insiders say the government is eyeing three major pushes:

• Diversify exports to Latin America and Southeast Asia

• Expand free zone manufacturing capacity

• Improve access to hard currency for importers of chemical equipment

And more privately, companies want simpler VAT rules, faster customs clearance, and a stable energy supply — basics, really, but critical for scaling up.

Another key conversation happening behind closed doors is green compliance. As EU and Gulf markets push stricter chemical safety and sustainability standards, Egyptian producers are under pressure to clean up operations or risk exclusion from key markets.

But for now, with numbers trending up and factories humming, the outlook feels stronger than it has in years.