Egypt has more than 1,500 apparel factories with an average production capacity of 500 million pieces a day. 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 10 per cent compared to 2017. Around 50 per cent of the country’s apparel production goes to the US and 30 per cent to Europe.

The US is the main export destination for the Egyptian apparel industry. Apparel created within the Egyptian Qualified Industrial Zone (QIZ) is duty free in 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 also enjoys duty-free market access to the EU with a double transformation rule of origin. With its fabric base and sourcing proximity to Turkey (Turkish fabrics classify as local under regional cumulation of rules of origin), exports to the EU are likely to increase.