In a high-level consultation held on January 5, 2026, Kamel Al0-Wazir, Deputy Prime Minister for Industrial Development, Egypt unveiled a series of measures aimed at localizing the entire textile value chain. The initiative seeks to bridge supply-chain gaps in the ready-made garments (RMG) and home furnishings sectors, which currently face an over-reliance on imported fabrics. By mandating that new garment factory licenses include spinning and textile manufacturing components, the Industrial Development Authority (IDA) is enforcing a policy of full industrial integration to ensure ‘sovereign’ production cycles.

Combating customs evasion and market irregularities

A newly formed committee, comprising the Ministry of Industry and the Federation of Egyptian Industries, has been tasked with curbing customs evasion and ‘predatory’ pricing from unregulated imports. Al-Wazir announced, the committee will intensify monitoring of factories in free zones and those utilizing ‘temporarily admitted’ raw materials. The objective is to ensure that imports are strictly calibrated to actual production capacities, protecting local manufacturers who adhere to stringent quality standards from unfair competition.

Partnerships and petrochemical independence

The government is aggressively pursuing private-sector partnerships to modernize state-owned spinning and weaving mills. These joint financing models allow private entities to leverage public-sector infrastructure - including land and machinery - while providing operational expertise. Furthermore, to reduce dependence on imported polyester, the Ministry is scaling up investment in the petrochemical sector, targeting a significant increase in domestic yarn production of cotton, flax, polyester, and wool to meet the rising demand from global brands sourcing in Egypt.

Egypt’s textile sector is a cornerstone of the national economy, employing approximately 1.5 million workers and targeting $12 billion in exports by 2031. The government’s Vision 2030 strategy focuses on revitalizing state-owned factories through $1.5 billion in upgrades and establishing integrated ‘Textile Cities’ in Minya and Fayoum. Key product categories include high-quality Giza cotton, flax, and RMG for the US and EU markets, with growth driven by strategic petrochemical localization and competitive energy costs.