China Eyes $2 Bn Textile Industrial City in Egypt Amid Growing Trade Ties

China is looking to establish a large-scale textile industrial city in Egypt with projected investments of around $2 billion, according to Mustafa Ibrahim, Vice President of the Egyptian-Chinese Business Council.

According to Erm Business, Ibrahim said the project, aimed primarily at exports, is under consideration for several locations including Minya, Monufia, and Fayoum. “China has sought to establish this city in Egypt for years, but it never materialized. Talks with the Egyptian government have now resumed, and this time we sense strong seriousness, driven by the pressures China is currently facing,” he noted.

he planned hub is expected to benefit from rising demand for Egyptian textiles and ready-made garments in the U.S. and European markets, as well as across the Arab region. During the first seven months of this year, Egypt exported more than $3 billion worth of garments, textiles, and home furnishings, according to the General Organization for Export and Import Control.

Ibrahim revealed that China is targeting $5 billion in new investments in Egypt by the end of 2026. This interest has been reflected in a growing number of investment inquiries and trade delegations in recent months.

“China is highly focused on Egypt at the moment,” he said. “It has recently expanded significantly in sectors such as textiles, ready-made garments, household appliances, automobiles and their feeder industries, and smartphones.”

Chinese investments in Egypt are currently estimated at $10 billion, the majority concentrated in the Suez Canal Economic Zone.