Egypt is positioning itself as a key hub for global trade, offering investors a strategic export base supported by multiple trade agreements and access to major markets in the Middle East, Europe, and the United States, according to Todd Wilcox, Deputy Chairman and CEO of HSBC Egypt.
Wilcox made the remarks during the Hong Kong Garment and Textile Business Mission held in Cairo, hosted by HSBC in collaboration with the Hong Kong Trade Development Council (HKTDC). The bank said the event aimed to strengthen trade and investment ties between Egypt and Hong Kong.
Garment and Textile Sector Attracting Investors
Wilcox highlighted Egypt’s garment and textile industry as a sector with significant growth potential for international investors. He pointed to the country’s skilled and cost-competitive workforce as a key competitive advantage capable of supporting large-scale job creation and export expansion.
HSBC has supported several Hong Kong-based companies in establishing manufacturing operations in Egypt’s garment and textile sector, leveraging its international banking network and local market expertise.
Iris Wong, Director of Merchandise Trade and Innovation at the Hong Kong Trade Development Council, noted that HKTDC has provided market insights and advisory support to strengthen the Egypt–Hong Kong business corridor and facilitate cross-border investment.
Katherine Fang, CEO of Hong Kong-based Fang Brothers Holdings and head of the visiting mission, described Egypt as a “compelling platform” for export-focused production, citing its free trade agreements and geographic proximity to key consumer markets.
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Suez Canal Economic Zone Central to Manufacturing Expansion
Egypt has been expanding manufacturing partnerships with Asian companies, particularly within the Suez Canal Economic Zone, which plays a critical role in global logistics. The Suez Canal handles approximately 12% of global trade and serves as a central artery for Asia–Europe shipping routes, in addition to being a major source of foreign currency revenue for Egypt.
However, maritime traffic has faced significant disruption since October 2023, as major shipping lines avoided the Red Sea due to heightened security risks. Vessels have been rerouted around the Cape of Good Hope, leading to longer transit times, increased fuel consumption, and higher insurance costs.
As a result, Suez Canal revenues have reportedly declined by an estimated 40–60% over the past two years.
Economic analysts suggest that Egypt could recover between 15% and 25% of lost canal revenue within three to five years by focusing on value-added services such as bunkering, ship maintenance, container handling, advanced warehousing, and regional logistics distribution.
Textile Exports Support Broader Industrial Strategy
Egypt’s garment and textile industry remains one of the country’s leading export sectors. In 2025, ready-made garment exports reached $3.3 billion, while spinning and weaving products generated $1.1 billion.
The government’s broader economic strategy emphasizes expanding domestic manufacturing capacity, reducing reliance on imports, and increasing export performance. Egypt aims to raise total annual exports to $115.8 billion by 2030 and has directed export councils to prepare plans to increase non-oil exports by 15–20% annually.
The national development framework also targets 7.5% GDP growth by 2030 and seeks to increase the industrial sector’s contribution to GDP from 14% to 20%.
Against this backdrop, HSBC executives argue that Egypt’s combination of trade agreements, geographic positioning, competitive labor costs, and expanding industrial infrastructure positions the country as an increasingly attractive platform for global trade and export-oriented investment.
