The apparel and textile sector in Egypt is experiencing a strong phase of expansion, fueled by global economic shifts and a growing influx of foreign direct investment (FDI). According to Mohamed Abdel Salam, chairman of the Ready-Made Garments and Textiles Chamber at the Federation of Egyptian Industries, Egypt today represents a favorable environment for production due to its solid economic fundamentals and operational convenience.
Key competitive advantages include low costs for electricity ($0.07/kWh compared to an average of $0.12 in other markets), water ($0.30-0.50/m³ compared to over $1.50 elsewhere), construction ($500-800/m², about half that of other countries), and a VAT of 14%, lower than the international average. Wages are also competitive compared to regional benchmarks. This mix of factors has attracted numerous global fashion companies to start or expand their operations in the country.
A significant case is the Turkish industrial group Shahinler, already present in Egypt with investments of $50 million. The company, led by Kamal Shahin, has begun talks with Egyptian authorities to transfer part of its production activities, particularly in the cotton, spinning, weaving, and ready-made garment sectors. The plan includes the creation of new plants, with an area between 50,000 and 100,000 m², an annual production of 3 million formal wear items, and the creation of approximately 3,000 new jobs.
These developments confirm Egypt’s strategic role as an emerging hub for textile production globally. According to Abdel Salam, export-driven growth will continue to be a decisive engine for attracting foreign capital and promoting employment in the country.
