Egypt is making significant strides toward a more sustainable industrial future with the launch of two landmark textile recycling projects, aimed at transforming waste into valuable resources while boosting the country’s economic and environmental performance.
8These developments align with Egypt’s Vision 2030 goals and reinforce its growing role as a regional leader in sustainable manufacturing.
Two Textile Recycling Projects Bring EGP 1.7 Billion Investment
In late April 2025, Prime Minister Mostafa Madbouly presided over the signing of a shareholders’ agreement to establish two new companies specializing in recycled polyester fiber and synthetic felt.
The projects, located at the Misr for Industrial Silk and Polyester Stable Fiber Company (Misrayon) in Kafr El-Dawwar, Beheira Governorate, will be powered by advanced European technology and supported by foreign investment totaling EGP 1.7 billion.
The first of these projects, with an investment of EGP 1.1 billion, will produce 30,000 tons of polyester fiber annually using recycled plastic waste. The second, valued at EGP 600 million, will convert textile waste into 30,000 tons of synthetic felt each year.
These efforts mark a major step forward in Egypt’s green industrial transformation, aiming to reduce environmental pollution, lower carbon emissions, and enhance the competitiveness of Egyptian products in global markets.
Export Potential Strengthens the Economic Case for Recycling
What sets these projects apart is not only their scale and innovation but also their focus on long-term sustainability and economic impact. The polyester fiber project expects to export 80% of its output, generating around EGP 800 million in annual sales.
The synthetic felt project, which plans to export more than half its production, is projected to earn approximately EGP 230 million in annual revenue.
Economic experts and academics are hailing these initiatives as pivotal. According to Mustafa Gaber, an economic researcher, the textile recycling sector in Egypt has long been an untapped source of profitability.
“The raw materials—fabric, plastic, and textile waste—are abundant and nearly cost-free,” Gaber told Arab Finance. “Add to this the availability of large-scale funding and the experience of Misrayon, and the foundation for success is strong.”
Eman Taher Sakr, Assistant Lecturer at the Textile Engineering Department at Badr University Cairo (BUC), agrees.
“Egypt has enormous potential to lead the Middle East and North Africa in sustainable textile and plastic recycling,” she said.
“With proper regulatory enforcement, investment in advanced infrastructure, and collaboration between public and private sectors, Egypt can establish itself as a hub for eco-friendly textile manufacturing.”
Advanced Recycling Technologies Could Strengthen Egypt’s Textile Industry
Sakr emphasized the importance of adopting advanced recycling technologies such as depolymerization, which produces recycled polyester (rPET) that meets the quality standards of virgin fibers. This capability will enable Egyptian manufacturers to compete in high-end international markets, including activewear and luxury fashion.
Moreover, she noted that automation in waste sorting and recycling can reduce dependency on imported raw materials and decrease production costs by up to 30%. This would insulate Egypt’s textile industry from fluctuations in global petrochemical prices and strengthen its competitive position.
Read more: Explore UNIDO’s roadmap for developing a circular textile value chain and textile waste recycling in Egypt.
The timing of these projects is critical. As global textile consumption is expected to surpass 102 million tons by 2030, the burden on natural resources and waste management systems continues to grow. The fashion industry is responsible for around 4% of global waste, prompting an urgent need for sustainable practices.
Recycling textiles offers numerous environmental and economic advantages: reducing landfill pressure, lowering energy and water usage, and minimizing chemical consumption. According to the book Fundamentals of Natural Fibers and Textiles, these benefits collectively lead to more sustainable and cost-efficient production cycles.
Egypt Combines Market Scale with Strategic Export Access
In Egypt’s context, the stakes are even higher. The country has a population of over 100 million and a thriving local demand for clothing and household textiles. It also enjoys a strategic geographical position and preferential trade agreements with key markets in Europe, Africa, and the Middle East. These advantages give Egypt a head start in building a textile recycling industry that serves both domestic and international needs.
“Compared to Southeast Asia, Egypt is much closer to European buyers,” Sakr noted. “This means reduced transport costs, faster delivery times, and greater responsiveness to market trends.”
Textile Recycling Supports Egypt’s Broader Circular Economy Vision
Ultimately, the two new projects are not isolated initiatives but foundational components of a broader vision to develop a circular economy in Egypt’s textile sector. By repurposing textile and plastic waste, the country can boost exports, generate employment, and reduce its ecological footprint—all while setting a powerful example for the region.
As Egypt embarks on this sustainable path, these projects will serve as key pillars in shaping a greener, more resilient future for the nation’s textile industry and its economy at large.
