President Abdel Fattah El Sisi on Friday hailed plans announced by Germany's Mercedes-Benz Cars to open an assembly plant in Egypt.

"We welcome the decision of Mercedes-Benz to resume manufacturing and assembly of cars in Egypt," Sisi was quoted by a statement issued by German automaker.

"The step that reflects the improvement of the investment environment and the performance of business in Egypt, as well as the openness of Egypt to cooperate with the German company within the framework of its policies to develop the automotive industry in its various categories," the president added.