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.

The 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.

Egypt is home to roughly 2,900 Chinese companies. Cairo aims to attract over 200 more by the end of next year, Ibrahim said, noting that the new entrants will span a wide range of economic sectors rather than being limited to specific industries.

He added that China’s push toward Egypt has also been influenced by international trade tensions, particularly U.S. tariffs imposed during Donald Trump’s presidency, which have hit Chinese exports hard.