Local Middle Eastern news site Amwal Al Ghad reports that the General Authority for the Suez Canal Economic Zone (SCZONE) has signed a land usufruct agreement with Eroğlu Egypt.
The $40m agreement is for constructing a readymade garment factory in the Qantara West Industrial Zone, to turn the zone into a regional hub for the clothing and ready-made garments industry.
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Data analysis company GlobalData has described Egypt as a “critical trade hub” due to its proximity to the Suez Canal, one of the busiest shipping lanes in the world.
Its Macroeconomic Report: Egypt shows that textile and apparel, its second-largest industrial sector, represents about 8% of exports, 34% of industrial production, 10% of Egypt’s working population and 3.4% of its GDP.
Once the new factory is operational it is expected to create over 3,000 job opportunities.
To bolster Turkish investments in the area, SCZONE chairman Walid Gamal El-Din said the garment factory would be the sixth of 15 projects being studied for implementation in the Qantara West Industrial Zone.
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By GlobalDataIn 2023, a GlobalData report on the macroeconomic outlook of Egypt showed that Türkiye accounted for $3.1bn in imports and $2.6bn in exports.
In April 2024, the SCZONE approved two projects worth $40m in the Western Qantara Industrial area for Türkiye’s DNM Denim company, owned by Eroğlu Holding.
Egypt’s apparel market forecast to 2025
In a report titled Egypt Databook: Menswear – Brand Shares, Market & Sector Summary & Forecasts to 2025, the region’s apparel market value was forecast to reach EGP184.2bn ($3.9bn) in 2025, up from EGP158.9bn in 2023.
Credit: GlobalData
GlobalData estimates that Egypt currently holds 2,500 garment factories and the industry employs around 1,500,000 garment workers with an estimated average wage of $175-1048.
In the last few years, the ease of doing business has improved and interest rates have fallen in the region. “Sustainable Development Strategy (SDS): Egypt Vision 2030” articulated government support to improve the textile and apparel industry and increase exports, with a focus on modernisation and greater integration between textiles and apparel.
