Turkey and Egypt have concluded a $350-million defense cooperation agreement aimed at expanding military trade and establishing joint defense production capabilities in North Africa. The deal was signed between Turkey’s state-owned Mechanical and Chemical Industry Corporation (MKE) and Egypt’s Ministry of Defence during an official visit by Turkish President Recep Tayyip Erdoğan to Cairo. Under the agreement, MKE will export the Tolga short-range air defense system to Egypt in a transaction valued at $130 million. The system is designed to counter drones and low-flying aircraft, strengthening Egypt’s short-range air defense capacity. The remaining $220 million will fund the construction of a 155mm long-range artillery ammunition factory in Egypt, along with production lines for 7.62mm and 12.7mm ammunition. The two countries also plan to establish a joint venture company to manage the facilities and support Egypt’s ambitions to become a regional defense manufacturing hub serving Africa and the Middle East. The agreement builds on a broader normalization of Turkey-Egypt defense ties following years of strained relations. In September 2025, the two nations resumed joint naval and air exercises under the “Friendship Sea” framework. Defense cooperation has also been visible at exhibitions such as EDEX 2025, where jointly developed systems including the Hamza-1 VTOL drone and the Aqrab unmanned ground vehicle were displayed.

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