In a significant development for Middle Eastern geopolitics, Turkey’s state-owned defense conglomerate Mechanical and Chemical Industry Corporation (MKE) has finalized a comprehensive $350 million arms agreement with Egypt’s Ministry of Defence. The landmark deal, confirmed by multiple sources to Middle East Eye, encompasses both ammunition sales and the establishment of sophisticated production facilities on Egyptian soil.
The agreement was formally sealed during Turkish President Recep Tayyip Erdogan’s diplomatic visit to Cairo on Wednesday, where he conducted high-level talks with Egyptian President Abdel Fattah el-Sisi. This defense collaboration represents the most concrete manifestation of the ongoing normalization process between the two regional powers, who had experienced severely strained relations following Egypt’s 2013 military transition.
Central to the arrangement is MKE’s export of its advanced Tolga Short-Range Air Defence System to Egypt, valued at approximately $130 million. This cutting-edge system, specifically engineered to counter unmanned aerial threats through integrated electronic and physical neutralization capabilities, recently saw its first international deployment to Qatar last month.
Beyond hardware transfers, the agreement establishes substantial industrial cooperation. MKE will construct a dedicated factory for 155mm long-range artillery ammunition within Egypt, complemented by production lines for 7.62mm and 12.7mm caliber ammunition. These industrial investments, accounting for the remaining $220 million of the total package, will be managed through a newly formed joint venture company designed to enhance regional export potential.
The Turkish Defense Ministry emphasized that this partnership extends beyond bilateral trade, creating a framework for defense industrial cooperation that addresses shared regional security concerns. The rapprochement between Ankara and Cairo has accelerated notably following Israel’s military operations in Gaza, with both nations finding common ground on issues ranging from Somali stability to broader regional security architecture.
MKE, historically the primary supplier to Turkish armed forces since its 1950 establishment, has undergone significant modernization since its 2021 corporate restructuring. This Egyptian contract represents a major milestone in Turkey’s ambition to become a competitive defense exporter to NATO allies and international partners.