Why to Invest in Egypt

1. Strategic Location & Market Access

• Gateway to Africa, the Middle East, and Europe: Egypt is ideally positioned to serve markets across Europe (via the Mediterranean), MENA, and Sub-Saharan Africa.
• Free Trade Agreements:
  • COMESA (Common Market for Eastern and Southern Africa)
  • GAFTA (Greater Arab Free Trade Area)
  • EU-Egypt Association Agreement
  • QIZ Agreement (Qualifying Industrial Zones with the U.S.): Allows tariff-free exports to the U.S. using Egyptian and Israeli inputs.

2. Competitive Labor Costs

• Low labor cost compared to Turkey, Tunisia, and Eastern Europe.
• Skilled and semi-skilled workforce available, especially in traditional textile cities like Mahalla, Alexandria, and 10th of Ramadan City.

3. Integrated Textile and Apparel Ecosystem

• Egypt has a long history in cotton cultivation and spinning, with integrated value chains:
  • From cotton farming and ginning
  • To spinning, weaving, dyeing, and garment manufacturing
• Presence of large public-sector and private-sector mills, along with industrial zones dedicated to textiles.

4. World-Renowned Egyptian Cotton

• Egypt produces long-staple and extra-long-staple cotton, considered among the best in the world.
• Premium positioning in luxury apparel, linens, and high-end textiles.

5. Government Incentives & Reforms

• Industrial land at subsidized rates
• Tax exemptions, customs incentives, and cashback export rebates (ranging from 8–12%).
• Streamlined licensing and investment procedures via the General Authority for Investment (GAFI).
• New industrial parks with ready-built factories and infrastructure, e.g., in Sadat City, Badr, and 10th of Ramadan.

6. Growing Export Sector

• Egypt’s textile and apparel exports exceeded $2.5 billion in recent years.
• Top destinations: USA, EU, Turkey, Arab countries.
• Strong demand for cut & sew operations and private-label production.

7. ESG and Sustainability Potential

• Opportunities in organic cotton, eco-friendly dyes, and sustainable manufacturing practices.
• International buyers increasingly sourcing from Egypt due to ESG transparency and traceability efforts.

8. Room for Innovation & Automation

• Low-cost base allows for investment in upgrading to more efficient, modern machinery.
• Demand for technology, training, and lean manufacturing models creates opportunities for joint ventures or equipment providers.

9. Textile Mega Projects Underway

• The government is investing heavily in revamping state-owned textile factories and building Africa’s largest spinning facility in El-Mahalla El-Kubra (in collaboration with Swiss machinery providers).

10. Political & Economic Stability

• Post-reform Egypt has seen macroeconomic stability, major infrastructure investments, and a government focused on manufacturing-led export growth.

✅ Summary: Why Egypt for Apparel?