China’s telecom giant Huawei is planning to establish a fiber optics manufacturing plant in Egypt to turn the country into a hub for assembling the company’s products and exporting them to global markets, Invest-Gate reports.

The company’s CEO Teri Liu announces the plan during his meeting with Minister of Investment and International Cooperation Sahar Nasr in Cairo.

During the meeting, Liu says that his company is seeking to expand its ventures in Egypt given the country’s improving investment climate.

“We believe that Egypt is a great market for the company, especially with regard to our strategy to expand in the Middle East,” Huawei Egypt CEO Liu notes.

In July 2016, Huawei announced its financial results during the first half of 2016. During the first six months of this year, Huawei generated sales revenue of CNY 245.5 bn (USD 35.6 bn), an increase of 40% compared to the same period a year earlier.