Egypt to cooperate with China & Turkey in exports worth $2.8 billion

A global shift in the textile industry is driving opportunities for Egypt.

Global transformation in textile industry..new horizons for Egypt in cooperation with China & Turkey

A historic opportunity is now knocking on Egypt's door that could change the global manufacturing and export landscape. This opportunity comes from two giants in the clothing industry: China and Turkey.

 The world is witnessing a remarkable transformation in textile and garment production chains, and Egypt today stands at a crossroads between a rich history of cotton and textiles and a promising future as a new global manufacturing center.

Despite the long history of Egyptian cotton, known globally as "white gold," Egypt has yet to enter the list of major clothing exporters. In 2024, Egypt's clothing exports reached only $2.8 billion, a significant growth of 18% compared to 2023. This figure remains small compared to the market giants: China, which exports approximately $286 billion annually, and Turkey, which exports approximately $36 billion annually.

However, these figures do not reflect a stable situation in both countries. China faces increasing challenges due to the trade war with the United States, tariff restrictions imposed under Trump, and rising domestic manufacturing costs. Turkey, meanwhile, is facing severe domestic inflation, rising energy and labor costs, and a volatile lira exchange rate, effectively forcing it to seek cheaper and more stable foreign alternatives.

In this context, Egypt appears to be an attractive alternative for both Beijing and Ankara, especially given its competitive advantages, such as low wages (less than $150 per month per worker), its proximity to Europe, and advanced infrastructure in areas such as the Suez Canal Economic Zone, Minya, Fayoum, and Sadat City.

Activity on the ground has already begun, with an official Chinese delegation visiting the Egyptian Investment Authority to discuss the possibility of relocating garment production lines from China to specific Egyptian sites. Turkish companies have also begun shifting their production to Egypt, taking advantage of lower costs and easier access to European and American markets.

Egypt's attractiveness to investors is further enhanced by the Qualified Industrial Zone (QIZ) agreement, which allows Egyptian products to enter the US market duty-free, provided they contain a certain percentage of Israeli components. This provides export advantages that are difficult to ignore. However, despite this enormous opportunity, the biggest challenge remains internal. 

Egypt still needs to improve its investment environment and develop technical and industrial education to fill the significant shortage of skilled workers in the ready-made garment sector. Furthermore, bureaucracy and weak local supply chains could hinder the full exploitation of this opportunity if not addressed seriously and swiftly.