Egypt has attracted nearly $70 million in new investments from leading Chinese textile and garment firms, reinforcing the country’s strategy to position itself as a regional manufacturing hub and boost export revenues under IMF-backed economic reforms.
The announcement came during a visit to Shanghai by Egypt’s Minister of Investment and Foreign Trade, Hassan El-Khatib, who revealed that two major Chinese companies—Zhejiang Holding and Jiangsu Haite Fashion Company—have pledged to establish new production facilities within Egypt’s free zones.
According to Egyptian media, Zhejiang Holding committed to an initial $20 million investment in Egypt’s textile and garment sector, with plans to scale it up to $50 million over the next five years. Meanwhile, Jiangsu Haite will invest $20 million to set up a new garment manufacturing plant geared towards exports to European and U.S. markets, leveraging Egypt’s extensive network of free trade agreements.
The investments were preceded by a high-level Chinese textile industry delegation visit to Egypt in May, organized by the Ministry of Investment and Foreign Trade. The visit aimed to present Egypt’s textile ecosystem and government-led incentives, including investment zones like the Suez Canal Economic Zone (SCZONE), which has emerged as a magnet for Asian manufacturing giants.
Egyptian officials emphasized the strategic importance of the textile and garment sector, one of the country’s largest industrial employers and a vital source of foreign exchange. A national development program is underway to modernize production infrastructure, enhance workforce skills, and increase exports, which reached $1.2 billion in 2023, according to Hani Salam, Chairman of the Apparel Export Council of Egypt. The council expects exports to climb to $1.4 billion by 2025.
Chinese firms have become increasingly active in Egypt’s industrial zones, with SCZONE Chairman Walid Gamal El-Din stating in 2024 that a recent promotion tour in China secured more than $1 billion in additional Chinese investments.
The latest deals mark a major step in Egypt’s broader vision to become a regional textile powerhouse, reduce dependence on imports, and generate thousands of jobs through deeper international partnerships and targeted industrial policy.
