Inside the $350 million Turkey-Egypt defence pact as Africa’s most powerful military seeks its first stealth fighter

Turkey and Egypt are transforming their diplomatic reset into a powerful defence partnership spanning arms purchases, local production, technology transfers and joint exercises as Cairo moves to fill critical gaps in its arsenal and defend its position as Africa’s strongest military in an intensifying regional arms race.

• Turkey and Egypt are expanding their diplomatic reset into a robust defense partnership involving arms deals, local production, and joint military exercises.
• A $350 million defense agreement allows Egypt to manufacture and export Turkish military equipment across Africa and the Middle East.
• Five main projects, including technology transfers and Egypt's potential participation in the KAAN stealth fighter program, are reshaping the partnership.
• Despite lacking a mutual defense treaty and disagreements over regional issues, the cooperation provides both nations with strategic and industrial advantages amid North Africa's intensifying arms race.

The Turkey-Egypt defence partnership is expanding around a $350 million agreement that could turn Egypt into a manufacturing and export hub for Turkish military equipment while helping Cairo address emerging capability gaps in its arsenal.

New weapons acquisitions and joint exercises show that Egypt and Turkey are moving beyond commercial deals towards closer operational coordination.

The shift comes as Egypt seeks to defend its position as Africa’s most powerful military, a ranking driven partly by the size of its forces rather than technological superiority, even as Algeria gains an edge in stealth aviation and advanced S-400 air defence.

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The $350 million defence agreement

Turkey’s state-owned Mechanical and Chemical Industry Corporation, known as MKE, signed the agreement with Egypt’s Ministry of Defence during Turkish President Recep Tayyip Erdoğan’s visit to Cairo in February 2026.

Under the deal, MKE will supply Egypt with the $130 million Tolga short-range air-defence system, designed to detect and counter drones and other low-flying threats.

The remaining $220 million will finance a joint Egyptian-Turkish company and local factories producing 155mm long-range artillery ammunition and 7.62mm and 12.7mm rounds for the Egyptian Armed Forces and export markets across Africa and the Middle East.

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Egypt’s search for a stealth fighter

Reports in 2025 said Turkey had approved Egypt’s participation in the KAAN fifth-generation fighter programme, offering Cairo a possible route to a stealth capability still missing from its arsenal despite its reported interest in American and Chinese alternatives.

Formerly known as TF-X, the KAAN is Turkey’s indigenous stealth-fighter project. Ankara launched the programme after the United States removed Turkey from the F-35 project over its purchase of Russia’s S-400 air-defence system.

Egypt’s participation could include technology transfers, component manufacturing and involvement in aircraft development. However, neither government has publicly released the final terms of Cairo’s role.

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Joint exercises deepen military ties

The industrial agreements have been followed by closer operational coordination between the two militaries.

Egyptian and Turkish fighter crews held joint air training at Egyptian bases in June 2026 before Egypt joined Turkey and Azerbaijan in the Anatolian Eagle exercise involving multirole combat aircraft.

On July 8, Egyptian airborne troops and commandos joined Turkish special forces for the Golden Eagle 2026 exercise, aimed at improving coordination, exchanging expertise and strengthening readiness for joint operations.

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Wider defence projects take shape

The MKE agreement forms part of a broader network of Egyptian-Turkish defence projects.

Turkish defence electronics company Aselsan opened a representative office in Cairo in December 2025 to serve the Egyptian Armed Forces and other local customers.

The company has also explored cooperation with Egyptian firms in air defence, military communications, electronic warfare and vehicle modernisation.

HAVELSAN signed an agreement with Egypt’s Arab Organization for Industrialization to produce autonomous drones, unmanned ground vehicles and other military systems locally.

Talks have also been reported with Turkish drone manufacturer Baykar, although no final agreement or dedicated Bayraktar TB2 production line in Egypt has been publicly confirmed.

North Africa’s arms race raises the stakes

The partnership is deepening as military spending accelerates across North Africa. Regional expenditure reached $35 billion in 2025, up 9.3% from 2024 and 67% from 2016.

Algeria remained Africa’s largest military spender at $25.4 billion, while Morocco ranked second in North Africa with $6.3 billion.

The shifting balance is increasing pressure on Egypt to modernise its forces, particularly as it still lacks an operational stealth fighter while Algeria is reported to have gained that advantage through the Su-57.

Morocco has also been linked to a possible acquisition of US-made F-35 fighters, although no agreement or official approval has been announced, adding another potential challenge to Egypt’s position as Africa’s most powerful military.

Cooperation with Turkey could help Cairo narrow the gap through advanced technology, domestic production and possible participation in the KAAN programme. Ankara, in turn, gains a major customer, an African manufacturing base and a gateway to defence markets across Africa and the Middle East.