Will Egypt shield ceramic producers from Chinese dumping?

Local ceramic and porcelain producers are awaiting a decision from the Investment Ministry on whether to impose safeguard tariffs on imports of Chinese origin — even if they enter via Arab countries — after filing a complaint three months ago, head of the ceramics division at the Federation of Egyptian Industries’ Building Materials Chamber and Vice Chairman of El Sallab Group Hossam El Sallab told EnterpriseAM. The case is in its final stages with the authorities, and a decision is expected within a month, which El Sallab believes would protect local industry from dumping practices and restore balance to the market.

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The local market is going through a slowdown amid weaker demand for building materials, making exports a strategic option for companies to weather the downturn, Al Ezz Ceramics and Porcelain (GEMMA) Investor Relations Director Hatem Shaheen told EnterpriseAM. Exports rose to 17% of the company’s sales in 2Q 2025, up from 9% in 1Q, with expectations for further growth in 3Q. Exporting provides more flexibility in managing rising local costs and helps maintain production capacity, Shaheen said, adding that expanding abroad is a priority for the company in the near future.

Still, boosting local demand requires incentives — foremost among them is easing construction permit issuance, which would benefit all building materials industries, not just ceramics, El Sallab said.

The challenge doesn’t come from Arab investments but from Chinese-backed projects that aim to “destroy building materials industries” in the Arab region by flooding markets with subsidized products, El Sallab argues. These firms enter Arab markets under the guise of local investment, but, in reality, they rely on Chinese labor and financing, giving them an unfair cost advantage and forcing local producers out, as has already happened in some Gulf markets, El Sallab said.

It’s not just Egypt that is struggling with the dumping of Chinese ceramic products: The EU, the UK, GCC nations, and more have anti-dumping measures on imports of Chinese ceramic products.

BY THE NUMBERS- Egypt’s ceramics industry generates some EGP 21 bn in annual revenues, with key players operating 33 factories with a maximum production capacity of 400 mn sqm a year, according to Prime Research. Egyptian ceramic and porcelain exports were valued at USD 47 mn in 1H 2025, down from USD 64 mn in the same period last year.