Many Turkish textile companies which had units in Egypt have suspended their operations and future investment plans in the country escalating violence. Many foreign companies are concerned about their investments in Egypt in the high-risk environment. Some Turkish textile firms have decided to halt operations until the violence ceases.
There are many Turkish textile companies, which make up around 80 per cent of Turkey’s more than $2 billion investments in Egypt. LCWaikiki started retailing operations in Egypt two years back. It has shut down its stores in Cairo and Alexandria and is continuing operations only in Hurghada.
Some companies have already announced that they would halt their production in the country due to the state of emergency, including Turkish Yıldız Holding, European oil giant Shell and Swedish home appliances maker Electrolux. Egypt has been highly favored by Turkish and other companies to establish production facilities thanks to its low production costs and ability to sell custom-free goods to many countries.