Plans to construct a readymade garment factory in
Egypt, which GlobalData estimates already holds 2,500 garment factories, have
been announced, as the region looks on track to become a “critical trade hub.”
Local
Middle Eastern news site Amwal Al Ghad
reports that the General Authority for the Suez Canal Economic Zone
(SCZONE) has signed a land usufruct agreement with Eroğlu Egypt.
Data analysis company GlobalData has
described Egypt as a “critical trade hub” due to its proximity to the Suez
Canal, one of the busiest shipping lanes in the world.
Its Macroeconomic
Report: Egypt shows that textile and apparel, its second-largest
industrial sector, represents about 8% of exports, 34% of industrial
production, 10% of Egypt’s working population and 3.4% of its GDP.
Once the new factory is operational it is
expected to create over 3,000 job opportunities.
To bolster Turkish investments in the area,
SCZONE chairman Walid Gamal El-Din said the garment factory would be the sixth
of 15 projects being studied for implementation in the Qantara West Industrial
Zone.
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In 2023, a GlobalData report on the
macroeconomic outlook of Egypt showed that Türkiye accounted for $3.1bn in
imports and $2.6bn in exports.
GlobalData
estimates that Egypt currently holds 2,500 garment factories and the industry
employs around 1,500,000 garment workers with an estimated average wage of
$175-1048.
In the last few years, the ease of doing
business has improved and interest rates have fallen in the region.
“Sustainable Development Strategy (SDS): Egypt Vision 2030” articulated
government support to improve the textile and apparel industry and increase
exports, with a focus on modernisation and greater integration between textiles
and apparel.
