Egypt’s readymade garment exports increased two per cent in the first quarter of 2019 compared to the same period of 2018.

The United States tops importing countries of Egyptian readymade garments. Apparel created within the Egyptian Qualified Industrial Zone (QIZ) is duty free to the US. Goods made in Egyptian QIZs can use fabrics imported from third countries and remain eligible for duty-free entry into the US market, provided 35 per cent of their value is added in Egypt, including a minimum of 10.5 per cent of Israeli content. Costs incurred in the US also count towards the 35 per cent threshold. Egypt’s readymade garment exports to the UAE were up 334 per cent in the first quarter. Exports to Canada were up 84 per cent.

Egypt’s textiles and clothing sector is the most integrated on the African continent. The apparel sector is the country’s most important industrial sector; it represents 6.5 per cent of total non-petroleum. Apparel exports in 2018 rose ten per cent compared to 2017. Fifty 50 per cent of the country’s apparel production goes to the US and 30 per cent to Europe. Egypt also enjoys duty-free market access to the EU. With its fabric base and sourcing proximity to Turkey, exports to the EU are likely to increase.