COUNTRY GUIDE: EGYPT
LEARN ABOUT EGYPT’S
MANUFACTURING SPECIALTIES, PRODUCTION BENEFITS, AND MORE.
The Arab Republic of Egypt has a thriving, modern society and is home to a sophisticated, growing apparel industry with strong ties to the international sourcing community. Offering a robust infrastructure, several duty-free trade agreements, and a forward-thinking approach to sustainability, Egypt’s manufacturers offer a wide variety of resources for apparel sourcing professionals to consider. Should Egypt be on your sourcing radar? Learn more about the nation’s dynamic apparel base below and then visit some of its leading manufacturing entrepreneurs at SOURCING at MAGIC Las Vegas.
A GROWING APPAREL POWERHOUSE
The Egyptian apparel sector has emerged as a significant industrial segment, making substantial contributions to the nation’s exports. This industry has seen an impressive growth rate of 67% over the past four years, hitting $2.4 billion (U.S.) in 2023 and surpassing that number as of November 2024. The United States and the European Union are the primary markets for Egyptian apparel exports, representing 42% and 21% of total apparel exports, respectively. The U.S. has become a crucial market, representing $1.030 billion in exports in 2023 and $1.061 billion as of November 2024. Exports to Europe hit $522 million in 2023 and were up to $595 million for 2024 in November. Apparel exports have grown by 26% over the last four years, increasing by 15% in 2024 compared to the same period in 2023.1
STRATEGIC ADVANTAGES MARKET PROXIMITY
Egypt has several strategic advantages, including a prime location with extensive access to the Mediterranean and Red Seas. Additionally, it has a reliable, developed infrastructure with 27 airports and 15 commercial ports. 2, 3 The nation offers a large labor force with competitive wages ($121 per month) and low energy costs (3 cents per kilowatt-hour), making it an attractive destination for apparel sourcing.
Egypt’s duty-free agreements include:
• Qualified Industrial Zones (QIZ) agreement with the United States
• Euro-Mediterranean Partnership Agreement (EUTA)
• MERCOSUR (Latin America)
• GAFTA (Greater Arab Free Trade Area)
• COMESA (Eastern and Southern Africa)
Egypt is the largest producer of extra-long-staple cotton in Africa and was ranked fourth among the top suppliers of jeans to the US in 2023.
Egypt serves as an outstanding nearshoring resource for brands based around the Mediterranean. Its proximity to the United States enables shipping times of as little as 12 days. The sector aims to become a textile hub for Africa and the Middle East, utilizing its vertically integrated textile supply chain that spans from cotton cultivation to garment manufacturing, including:
• Cotton Growing
• Cotton Production
• Synthetic Fibers
• Spinning
• Weaving
• Dyeing, Printing, & Finishing
• Apparel manufacturing
RESTRUCTURING PLANS SUSTAINABLE PRACTICES
Egypt also has significant plans for modernizing and restructuring its public sector enterprises to lead to greater efficiency, including:
• Merging 30 spinning and weaving companies into nine
• Merging all cotton trading and ginning companies into one
• Developing the first cotton gin in the Fayoum Governorate (in central Egypt) while replacing 25 old gins with new ones
• Opening the world’s most extensive spinning and weaving factory in Al Mahalla Al-Kubra (in the Nile Delta area), which accommodates more than 182 thousand spinning mills, with an average production capacity of 30 tons of yarn/day
• $550 million is being spent to update machinery from spinning, weaving, dyeing, and finishing
• Utilizing 100% Egyptian cotton from Giza for all yarn counts
• Establishing an “Egyptian cotton hub company” responsible for marketing the holding company’s different cotton, spinning, weaving, and clothing products under one brand
Sustainability is a significant focus of the Egyptian apparel sector. Many factories prioritize eco-friendly practices and promote organic cotton and recycled polyester. They have also adopted energy-efficient technologies, such as solar panels and heat recovery systems in their facilities. Seventy percent of apparel factories in Egypt comply with ethical and social standards, holding certifications from WRAP, Oeko-Tex, SEDEX, and GOTS, which ensure high production standards and sustainability.
Factories are receiving training in best practices through development projects such as CBI (Centre for the Promotion of Imports from developing countries), gTex (Textile Agency in Egypt), the US Agency for International Development (USAID), and SwitchMed. These programs cover supply chain management, lean manufacturing, SEDEX/SMETA compliance (for responsible and ethical sourcing), and ZDHC (Zero Discharge of Hazardous Chemicals) certification. Egypt also produces apparel made from 100% organic cotton.
Better Work, a collaboration between the United Nations’ ILO (International Labour Organization) and the IFC (International Finance Corporation), is a comprehensive program bringing together all levels of the garment industry to improve working conditions, respect labor rights, and boost the competitiveness of apparel and footwear businesses. It has been active in Egypt since 2017.
The Better Cotton Initiative enhances sustainability in cotton production. Egypt officially became a Better Cotton program country in 2020 as part of its renewed effort to grow more sustainable cotton and improve conditions for Egyptian cotton farmers. This followed the successful completion of a pilot project in 2019.
The Egyptian apparel sector is thriving, driven by its strategic location, cost advantages, and commitment to sustainability. With a vertically integrated supply chain and growing export markets, Egypt has become a major player in the global apparel industry. See what these makers can offer your collection: Some of Egypt’s finest manufacturers are represented at SOURCING at MAGIC Las Vegas and look forward to meeting you there.
Look for the Egyptian pavilion at our next SOURCING at MAGIC Las Vegas event.
Learn more about some of the other nations that are represented at SOURCING at MAGIC Las Vegas, by checking out our ever-expanding Country Guide Library here.
Connect with a global community of manufacturers, suppliers, brands, and retail buyers, while learning about key industry insights and supply chain efficiencies.
We hope to see you in person at one of our upcoming SOURCING at MAGIC events. Visit our website here to learn more. 1. All figures provided by the Apparel Export Council of Egypt, unless otherwise noted.”
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