Local news site from the Middle East Amwal Al-Ghad reports that the General Authority for the Suez Canal Economic Zone (SCZONE) has signed a usufruct agreement with Eroğlu Egypt.
The $40 million deal will see the construction of a ready-made garment factory in the Qantara West Industrial Zone, to make the zone a regional hub for the apparel and ready-made garments industry.
Data analytics firm 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.
Are Macroeconomic Report: Egypt shows that textiles and clothing, the second largest industrial sector, represent approximately 8% of exports, 34% of industrial production, 10% of Egypt’s labor force and 3.4% of GDP.
Once operational, the new factory is expected to create more than 3,000 jobs.
To strengthen Turkish investments in the area, SCZONE Chairman Walid Gamal El-Din said the garment factory would be the sixth of 15 projects being explored for implementation in the Qantara West Industrial Zone.
In 2023, a GlobalData report on Egypt’s macroeconomic prospects found that Turkey was responsible for $3.1 billion in imports and $2.6 billion in exports.
In April 2024, the SCZONE approved two projects worth $40 million in the West Qantara industrial area for Türkiye’s DNM Denim company, owned by Eroğlu Holding.
Egyptian clothing market forecast until 2025
In a report entitled Egypt Databook: Men’s Clothing – Brand Shares, Market and Sector Overview and Forecasts to 2025The value of the region’s apparel market was expected to reach EGP184.2 billion ($3.9 billion) in 2025, up from EGP158.9 billion in 2023.
Credit: GlobalData
GlobalData estimates that Egypt currently has 2,500 garment factories and the industry employs approximately 1,500,000 garment workers with an estimated average wage of $175-1048.
In recent years, the ease of doing business has improved and interest rates have fallen in the region. The “Sustainable Development Strategy (SDS): Egypt Vision 2030” formulated government support to improve the textile and clothing industry and increase exports, with an emphasis on modernization and greater integration between textiles and clothing.
“In Data: Egypt’s Apparel Market Expected to Reach $3.9 Billion by 2025” was originally created and published by Just Style, a brand owned by GlobalData.
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