Turkey signs $350m arms deal with Egypt
Turkish arms supplier Mechanical and Chemical Industry Corporation (MKE) has signed a major export agreement with the Egyptian Ministry of Defence, which includes the sale of ammunition and the establishment of production lines in Egypt.
Sources familiar with the agreement told Middle East Eye that the total value of the deal is $350m.
The agreement was signed during Turkish President Recep Tayyip Erdogan’s visit to Egypt on Wednesday, where he met with his Egyptian counterpart, Abdel Fattah el‑Sisi.
Following a prolonged period of strained relations after the Sisi‑led military takeover in Egypt in 2013, the two countries successfully initiated a rapprochement in 2023, appointing ambassadors to each other.
Ankara and Cairo have since gradually deepened their ties, particularly following Israel’s war on Gaza, sharing overlapping interests ranging from Somalia and Sudan to broader regional security issues.
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In an official statement on Thursday, the Turkish defence ministry said that under the agreement, the state‑owned defence company MKE will export the Tolga Short‑Range Air Defence System to Egypt.
Developed by MKE to counter aerial threats, particularly drones, the system will be sold for $130m, according to sources.
The ministry also said that, as part of the deal, MKE will establish a 155mm long‑range artillery ammunition factory in Egypt, along with production facilities for 7.62mm and 12.7mm ammunition.
Sources said the remaining $220m of the agreement will cover the costs of these investments.
“In order to manage the production facilities to be established and to enhance export potential in Egypt and the wider region, an agreement has been reached between MKE and the Egyptian authorities to establish a joint venture company,” the ministry added.
Founded in 1950, MKE has long been the primary supplier of ammunition and weaponry to the Turkish armed forces.
In 2021, the company was restructured as a corporation, modernising its infrastructure and launching ambitious projects aimed at becoming a competitive arms supplier capable of exporting to Nato allies and other partners.
MKE also exported the Tolga air defence system to Qatar last month.
The system provides an integrated framework combining command and control, radar, electro‑optical systems, electronic jamming, weapon systems of various calibres and specially developed ammunition.
The system neutralises aerial threats using both electronic (soft‑kill) and physical (hard‑kill) methods.
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