Egypt’s textile industry stands at a crossroads, balancing mounting cost pressures and fierce international competition with opportunities for growth in exports and investment, according to Mahmoud Ghazal, CEO of MGS Industry and a member of the Textile Industries Chamber.
Ghazal emphasised that Egypt holds key advantages for attracting investment in the textile sector, including its renowned long-staple cotton, geographic proximity to Europe, and trade agreements that grant preferential access to major markets.
However, he cautioned that bureaucracy, high domestic financing costs, and limited adoption of modern technology remain obstacles to the sector’s global expansion.
“The textile industry is not only an economic driver but also a pillar of social stability and empowerment,” Ghazal noted, pointing to the hundreds of thousands of Egyptians it employs, many of them women.
He explained that rising costs of raw materials, energy, and logistics weigh heavily on Egyptian producers compared to competitors, in addition to “sunk costs” from major investments in equipment and infrastructure. Improving operational efficiency, he said, is now essential.
Looking outward, Ghazal identified European and US markets as promising destinations for Egyptian textile exports, especially as these markets seek faster, more sustainable alternatives to Asian suppliers. He added that eco-friendly products made from Egyptian cotton could regain international prominence if backed by proper investment and marketing.
Egypt also enjoys relatively lower labour costs compared to Turkey, but faces intense competition from Bangladesh and Vietnam. To address this, Ghazal called for enhanced training programmes and wider adoption of advanced technologies to secure consistent, high-quality production.
Domestically, he highlighted the gap between large firms and small- and medium-sized factories, which continue to struggle with limited financing and restricted market access. On the global stage, he stressed that Egypt must focus on quality, speed of delivery, and compliance with environmental standards to stand out against rivals such as China, India, and Turkey.
“A comprehensive national strategy to support exports, develop labour skills, and modernise technology is the real path to restoring Egypt’s place at the forefront of the global textile industry,” Ghazal concluded.
Official figures reflect the sector’s momentum: Egypt’s ready-made garment exports surged by 26% in the first seven months of 2025, reaching $1.939bn compared to $1.539bn during the same period last year, according to the Apparel Export Council of Egypt.
