Egypt targets Middle East grain hub amid rising import costs and supply risks

Egypt, the world’s largest buyer of Russian wheat, is stepping up plans to turn itself into a major grain trading and storage center serving the Middle East and Africa, as Cairo deepens economic ties with Moscow and pushes to strengthen food security.

Speaking at a grain industry forum in the Russian city of Sochi, Sherif Farouk said Egypt is pursuing a broad plan to expand its role in the global grain business, with new investments in storage, processing, and logistics infrastructure. This comes as countries across the region continue to grapple with supply disruptions, rising import costs and pressure on food prices.

Egypt targets Middle East supply hub

Farouk said the government wants Egypt to become a central point for storing, processing and trading grains destined for markets across the Middle East, Africa and beyond. The plan includes the construction of modern grain elevators, upgraded transport links and expanded processing facilities designed to handle larger volumes of wheat and other crops.

“In this context, Egypt now wants to establish a global hub for grains,” Farouk said during the event, describing the project as part of a longer-term effort to modernize the country’s agricultural supply chain and strengthen strategic reserves. The proposal also points to closer cooperation between Egypt and Russia in commodity trading.

Farouk said Egyptian and Russian exchanges could work together on upgrading Egypt’s grain trading system, improving pricing mechanisms and increasing transparency in the supply chain. He added that Cairo intends to continue working with Moscow on grain tracking systems aimed at improving oversight in the commodities market.

Egypt-Russia grain exchange MOU

The push follows earlier moves by Egypt and Russia to deepen cooperation under the BRICS framework. This year, Russia’s SPIMEX and Egypt’s Egyptian Mercantile Exchange signed a memorandum of understanding to support the creation of a new grain exchange focused on grains, legumes and oilseeds.

The initiative is expected to make trading between both countries easier while reducing dependence on the U.S. dollar in some transactions. Igor Artemyev said the platform would give brokers and companies in both countries more direct access to commodity trading. Russian President Vladimir Putin has also signaled support for eventually expanding the platform to include other major commodities.

Egypt positions itself as a trade gateway role

Cooperation between Cairo and Moscow is also widening beyond agriculture. During a recent visit by a Russian State Duma delegation to Egypt, Karim Badawi met with Russian Energy Minister Sergei Tsivilev to discuss ongoing energy and mining projects. Russian companies already have a growing presence in Egypt’s energy, infrastructure and manufacturing sectors.

The Russian Industrial Zone in Port Said is expected to support manufacturing for export markets across Africa, Russia and the Eurasian Economic Union. Russia is supplying nuclear fuel and technical support for Egypt’s El Dabaa Nuclear Power Plant, one of the country’s largest energy projects. Egypt is expanding grain storage and trading capacity to secure food supplies and position regional trade gateway between Africa Middle East commodity markets.