The world’s first specialized free zone for the textile industry is underway in Egypt. It covers an area of 2.2 million sq. mts. Free zones have a great role in the Egyptian economy. They recorded exports worth $14.7 billion from January to September 30, 2018, with an increase of $1.1 billion compared to the same period in 2017.

The textile industry is facing global changes, one of which is transferring the focus of this industry from the east to other regions in the world. And Egypt wants to take advantage of the opportunity and attract textile investments. The Middle East including Egypt has many advantages, among which are geographical location, consumer market, free trade agreements with COMESA, and availability of labor and a suitable investment atmosphere.

There are several free economic zones in Egypt. Free zone companies in Egypt enjoy a lifetime exemption from income tax, sales tax, import, and export duties. Egypt free zone companies with high electrical consumption (steel, cement, and fertilizers) are subject to 20 per cent corporate income tax on their net profits.

The country’s various zones have a wide range of different sector focuses. The Media Public Free Zone hosts radio and television companies. The Shebin El Kom Public Free Zone is mostly populated by the textile spinning and weaving industry.