Egypt has signed a new foreign investment agreement in the textiles sector after the Suez Canal Economic Zone concluded a $5.6 million deal with Turkish garment manufacturer Eroglu Moda Tekstil to establish a ready-made garments factory in the Qantara West Industrial Zone, reinforcing the zone’s position as a fast-growing hub for export-oriented manufacturing.
According to SCZone, the project will be fully self-financed and developed on a 5,700-square-metre site, with operations expected to generate around 700 direct jobs once production begins. The factory will manufacture ready-made garments and denim products, with an annual production capacity of up to one million pieces, reflecting the rising interest of Turkish apparel producers in Egypt as a competitive manufacturing base close to European and Middle Eastern markets.
Under the project’s export-led model, approximately 95 percent of output will be shipped abroad, while the remaining five percent will be supplied to the domestic market. SCZone officials said the export focus aligns with Egypt’s broader strategy to boost non-oil exports, deepen industrial value chains, and capitalize on trade agreements that provide preferential access to key markets.
The agreement was signed by Waleid Gamal Eldien, chairman of SCZone, and representatives of Eroglu Moda Tekstil Sanayi ve Ticaret A.Ş. Eldien said the new factory adds momentum to the expanding textile and apparel cluster taking shape in Qantara West, which has become one of the most active industrial zones within the SCZone framework.
Eldien noted that the number of contracted projects in Qantara West has now reached 50, spanning a total area of around 3.46 million square metres, with cumulative investments estimated at $1.35 billion and the potential to create more than 70,000 direct jobs. He added that several of these projects are being developed in cooperation with the Main Development Company, SCZone’s industrial development arm, which specializes in delivering ready-to-operate factories and infrastructure to accelerate investor entry and shorten project timelines.
The deal underscores Egypt’s growing appeal to Turkish manufacturers seeking cost-efficient production platforms with strong export logistics, particularly in labour-intensive sectors such as garments and textiles. It also highlights SCZone’s role in attracting diversified foreign direct investment by offering integrated industrial zones, streamlined licensing, and proximity to global shipping routes via the Suez Canal.
