Arafa Holding, Egypt's biggest garment producer and exporter, has signed a deal with Italian luxury men's wear group Ermenegildo Zegna to set up a shirt manufacturing company.

The firms will each hold a 50% stake in the joint venture, which will be called Camegit for the Garment Industry and will be based in Beni Sweif, where Arafa Holding already has facilities.

Arafa, which is headquartered in Nasr City, Cairo, makes clothing for Zara, JC Penney, Macy's, Banana Republic and Gap, with around 78% of its local manufacturing sales shipped overseas. 

It retails the Concrete brand in Egypt, while its foreign operations include UK men's wear company Baird Group which holds 12% of the UK suits market. The company also has a 35% stake in Gruppo Forall, the Italian company that owns the Pal Zileri brand.