Egypt is working with the UN Food and Agriculture Organization (FAO) to develop a new strategic framework for its olive sector while launching a separate agricultural development programme aimed at creating more sustainable livelihoods in South Sinai.
The two initiatives were formalised through memoranda of understanding signed on September 10, 2026, between Egypt's Ministry of Agriculture and Land Reclamation and FAO. One project will develop a master plan for agricultural and rural development in South Sinai, while the other will assess Egypt's olive value chain and lay the groundwork for a national strategy for the sector.
For the olive industry, the partnership is intended to look beyond farm production. FAO experts will work with Egypt's Agricultural Research Centre and Desert Research Centre to conduct a national assessment covering the chain from producers through processing, marketing and ultimately consumers. The assessment is expected to identify constraints and opportunities that can guide efforts to raise productivity and improve the competitiveness of Egyptian olives in domestic and international markets.
The government is also seeking to expand olive cultivation, particularly oil-producing varieties, as part of its broader interest in developing the sector. That creates an opportunity to move beyond just increasing planted area and address what happens after olives leave the farm: processing capacity, product quality, marketing, value addition and access to export markets.
The initiative comes as Egypt continues to position horticulture as an important agricultural export opportunity. Earlier this year, FAO and the European Bank for Reconstruction and Development identified significant potential for Egypt to expand horticultural exports, while pointing to the need for stronger food-safety systems, quality standards, cold-chain infrastructure and better coordination across fragmented value chains.
South Sinai brings a different but complementary dimension to the partnership. The new development project is designed to strengthen local communities, with particular attention to young people and women, by creating more sustainable livelihoods and connecting local economic activities with agricultural and food value chains.
The project will also focus on making better use of South Sinai's natural resources. Rather than treating rural development as an agricultural production exercise, the approach seeks to connect local resources, communities and markets into a broader rural economy.
For FAO, the partnership provides an opportunity to combine technical expertise with Egypt's agricultural research institutions. FAO Regional Representative for the Near East and North Africa AbdulHakim El-Waer said the national olive assessment would provide the government with the information and studies needed to support sustainable economic growth and food security in the sector.
The work also fits into a wider pattern of FAO-supported value-chain development in Egypt. Earlier in 2026, the organisation worked with Egyptian authorities on strengthening the country's date-palm sector through better agricultural practices, pest management, productivity and compliance with international food-safety and phytosanitary standards.
The olive project is therefore less about a single intervention and more about building a clearer roadmap for the sector. If the assessment identifies where Egypt is losing value between the farm and final market, the resulting strategy could help direct investment toward the parts of the chain that offer the greatest potential for higher productivity, processing and export earnings.
NBF Insight
Egypt's olive opportunity is not just about planting more trees. The bigger opportunity is building a value chain that can turn olives into more valuable products, meet international standards and capture a larger share of the money generated between the farm and the final consumer. FAO's role in mapping that chain could give Egypt the evidence needed to decide where investment should go next, from orchards and processing to marketing and export infrastructure.
Photo credit: Egypt Cabinet
