Manufacturing Egypt looks to China for cash injection to lift textiles industry By Nadim Kawach May 14, 2025, 6:27 PM Alamy/Claudia Wiens via Reuters Connect Women working at a textile factory in Bilbeis, north of Cairo. Egypt's fabric and garment industry is a major source of hard currency Chinese business leaders met minister ‘Comprehensive restructuring’ underway Fabric and garment exports hit $1.2bn A delegation from China’s textile industry visited Egypt this week as part of the Cairo government’s strategy to attract investment to its fabric and garment businesses, local media has reported. The group of 37 Chinese business leaders and representatives from 25 companies met Mohammed El Shimy, Egypt’s minister for public enterprises, to discuss partnerships with domestic manufacturers. Egypt’s textiles sector is a core component of its economy and a major hard currency earner. El Shimy told the Chinese delegation that a “national programme” to develop the industry was underway, with the aim of increasing exports, according to the newspaper Al-Watan. He said the industry “is currently witnessing a comprehensive restructuring and development plan covering marketing, administrative, financial and technical aspects”. This strategy “has created promising investment opportunities for local and global partners”, El Shimy added. “He also made clear that the plan aims to restore Egypt’s pioneering position in this industry, expand its market share and increase profitability.” Chinese carmaker Jetour to build assembly plant in Algeria Egypt’s inflation climbs as fuel becomes expensive Video: Egypt’s prosperity rests on private sector, says billionaire Sawiris Egypt’s textile and garment exports increased to $1.2 billion in 2023, according to Hani Salam, chairman of the Apparel Export Council of Egypt. Salam said last week that the council expects 2025 exports to reach $1.4 billion. Officials hope increasing sales of textiles and garments will help Egypt wipe out a persistent trade deficit. Mohamed Abdel Salam, chairman of the Ready-Made Garments and Textiles Chamber at the Federation of Egyptian Industries, said last month that the sector was growing, buoyed by global economic shifts and a surge in foreign direct investment. Abdel Salam said Egypt’s “favourable” investment climate was attracting increased attention from international manufacturers, thanks to its strong economic fundamentals and competitive production environment. “Egypt offers one of the most cost-efficient operational landscapes in the region,” he said. AGBI reported last month that a raft of Turkish textile companies are planning to move to Egypt to stay afloat in the face of rising costs and fierce international competition. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
