Turkey has reached a landmark $350-million defense agreement with Egypt that combines arms exports with long-term industrial cooperation. Signed during President Erdoğan’s visit to Cairo, the deal brings together Turkey’s MKE and Egypt’s Ministry of Defence to expand bilateral defense ties. A key element of the package is the $130-million export of the Tolga short-range air defense system, which is designed to detect and engage drones and low-altitude aerial threats. Beyond equipment sales, the agreement places strong emphasis on local production. Approximately $220 million will be invested in building a 155mm artillery ammunition plant in Egypt, alongside facilities for producing small- and heavy-caliber ammunition. A jointly owned company will oversee operations, supporting Egypt’s goal of becoming a regional center for defense manufacturing and exports. The pact reflects improving military relations between Ankara and Cairo after a decade of limited cooperation. Joint naval and air exercises resumed in 2025, and defense exhibitions have highlighted collaborative projects such as the Hamza-1 drone and Aqrab unmanned ground vehicle. Together, these initiatives signal a shift toward deeper industrial and operational defense cooperation.
