Textile manufacturing, as one of the key development industries, is the second largest industry in Egypt and has an important position in the field of light industry. Textile manufacturing accounts for 34% of Egypt’s industrial output and 11% of total exports. The average annual export value in the past three years is $3 billion, half of which is ready-made garments. Egypt has sufficient textile raw materials, a complete industrial chain, a wide radiation market, and sufficient labor resources, and both Europe and the United States are the main export markets for Egyptian textiles and apparel. With $ 17.5 billion in foreign investment and the implementation of the 2025 plan to quadruple exports of textiles and apparel, Egypt’s textile manufacturing industry 2022-2027 compound annual growth rate is expected to exceed 4%.
Egypt is a major producer and exporter of long-staple cotton
Egypt’s leading textile and cotton industry, with strong exports.
Egypt is a large producer and exporter of long-staple cotton, mainly exporting cotton, man-made fibers and synthetic fibers (mainly short fibers). As Egypt’s traditional pillar industry, the cotton industry occupies an important position in the Egyptian economy, is an important source of foreign exchange earnings. Egypt’s long-staple cotton still accounts for 90% of domestic cotton production, is deservedly the world’s “long-staple cotton kingdom”. However, due to the change of consumer preferences, new textile technology and the intensification of international competition in the cotton industry, Egypt is losing its position in the world cotton textile industry, the development of the cotton industry is in urgent need of industrial reform.
In 2019, Egypt’s textile and apparel exports stood at $3.721 billion. Due to the continued impact of the epidemic, exports in 2021 will be $3.009 billion, including $2.083 billion in ready-made garments, an increase of 43% year-on-year, reaching an all-time high. Egypt’s geographical location has a natural strategic advantage for its textile exports to the U.S. and the EU. It is reported that about 56% of Egypt’s garment exports to the U.S. market, 35% to the EU market, about 6% to Turkey and about 3% to the Gulf Arab States. 2021, Egypt’s textile and apparel imports amounted to $3.805 billion, of which about $3.294 billion in textiles and $511 million in garments.
Egypt is an important partner of China’s Belt and Road textile industry
As one of the important countries in the “Belt and Road” cooperation, Egypt is also an important trade partner of China and the largest source of textile and garment imports. Egypt textile market has become the preferred entry point for many Chinese textile enterprises to develop the African market, in addition to the advantages of the Egyptian textile market itself, mainly due to the long-standing good cooperation between China and Egypt in politics, economic and trade. For Chinese enterprises, investment in Egypt to set up textile enterprises, means that in addition to access to the Egyptian domestic textile market, while there is hope to enter the Middle East, Africa, Europe and the United States textile market.
Egyptian government take a variety of measures to help restore the order of the textile market
After the outbreak of the Russia-Ukraine conflict, Egypt became one of the countries which are most seriously affected. Egyptian Prime Minister Mostafa Madbouly said that the impact of the Russian-Ukrainian conflict on Egypt’s textile industry is much more serious than the New Crown pneumonia epidemic, and the rising prices of fuel and goods have put serious pressure on the Egyptian economy. To boost the economy of the Egyptian textile industry, in March 2022, Egypt plans to open the world’s largest textile factory in El-Mahalla, with a daily capacity of up to 30 tons. Officials have now announced incentives to grow standardized, high-quality cotton, and these measures will create opportunities for more textile companies. Change of consumer needs and preferences will also prompt the textile mill to adopt the latest manufacturing technologies.
