Egypt is rapidly emerging as a global hotspot for textile manufacturing, driven by a surge in foreign direct investment (FDI), attractive production costs, and robust government incentives. According to Mohamed Abdel Salam, Chairman of the Ready-Made Garments and Textiles Chamber at the Federation of Egyptian Industries, Egypt offers a “favorable environment for production” that is increasingly drawing the attention of major international players.
Egypt’s Cost Advantage Rises
Key competitive advantages are fueling this momentum. Egypt boasts low electricity costs ($0.07/kWh vs. $0.12 global average), affordable water ($0.30–$0.50/m³ vs. over $1.50 elsewhere), and cheaper construction expenses ($500–$800/m²—roughly half the cost of other countries). A VAT rate of 14%, lower than many global standards, combined with competitive wages, further strengthens Egypt’s position.
Among the most notable recent investments is the expansion plan of Turkish industrial giant Shahinler Group, led by Kamal Shahin. Already investing $50 million in Egypt, the group is in talks with Egyptian authorities to transfer significant production capacities, particularly in cotton, spinning, weaving, and ready-made garments. The proposal includes developing new plants covering up to 100,000 m², with an annual capacity of 3 million formalwear items and the creation of approximately 3,000 jobs.
“These strategic investments are a strong endorsement of Egypt’s potential as a global textile hub,” said Abdel Salam, adding that export-led growth will be a key engine for economic development and job creation.
As global brands seek more efficient and stable production bases, Egypt’s mix of cost-effectiveness, strategic location, and growing infrastructure continues to position it as a rising force in the international textile and apparel industry
