Egypt eyes garment export growth to attract foreign investment

Daily News Egypt

12-05-2025

Egypt's garment and textile sector is experiencing significant growth, buoyed by global economic shifts and a surge in foreign direct investment (FDI), according to Mohamed Abdel Salam, Chairperson of the Ready-Made Garments and Textiles Chamber at the Federation of Egyptian Industries.
Abdel Salam noted that Egypt's favorable investment climate is 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.
Recent studies highlight key advantages: electricity costs average $0.07/kWh in Egypt, compared to $0.12 in many other markets. Water prices range between $0.30 and $0.50 per cubic meter, while in competing countries they often exceed $1.50. Construction costs in Egypt range from $500 to $800 per square meter, nearly half of what they can be elsewhere. The country's VAT stands at 14%, compared to up to 18% in other nations, and wages remain competitive relative to regional benchmarks.
'These cost efficiencies have led numerous global players in the apparel industry to initiate or expand operations in Egypt,' Abdel Salam said, citing rising investor interest in establishing new projects across the sector.
Among the most recent developments is the expansion of Turkish industrial conglomerate Shahinler Group, which is actively coordinating with Egyptian authorities to explore new investment opportunities. Shahinler Group Chairperson Kamal Shahin recently held meetings with Minister of Public Enterprises Mohamed El-Shimy and officials from the Industrial Development Authority, facilitated by the Chamber.
The discussions focused on mechanisms for collaboration and plans to relocate parts of Shahinler's manufacturing operations to Egypt—specifically in cotton, spinning, weaving, and ready-made garment production.
With exports to 170 countries, Shahinler has already invested $50m in Egypt. The group's expansion is expected to generate up to 3,000 new jobs and will require land allocations ranging from 50,000 to 100,000 square meters. Annual production from the new facilities is projected to reach 3 million pieces of formal wear.
'This is a clear signal that Egypt is not only a viable alternative but a preferred destination for global textile production,' Abdel Salam emphasized, adding that the sector's export-oriented growth strategy will continue to play a critical role in attracting foreign capital and creating employment.