A textile park is coming up in Egypt and it is expected to house around 600 Chinese garment and textile factories. Seventy factories have already committed to the park, while around 20 more would go operational soon. The park could provide nearly 1,60,000 jobs once all factories start functioning. The textile park is awaiting machines for nearly 140 factories by the end of the year, and once these are available, the production is expected to start full swing. The 3.1 million square meter park can help China export garments duty-free to the US as well as the European Union especially in the wake of the US imposing a heavy duty on Chinese imports. Cheap labor, low water cost and electricity cost are other major attractions for Chinese firms to come to Egypt.

Egypt could be a potential textile base for Chinese apparel manufacturers. Egypt’s location at the crossroads of the trade routes between Europe, Africa and Asia makes it an integral part of China’s Belt and Road Initiative. Also Egypt is still one of the prominent textile exporters globally.

The textile sector accounts for 27 per cent of Egypt’s industrial production, making it the second largest industry after processed food. The industry contributes eleven per cent to manufacturing GDP and three per cent to total GDP. Egypt’s main export partners have traditionally been the United States and the European Union but the trade includes other Arab countries, China and Brazil.