At the 200 Years of Egyptian Cotton Conference, the Chief Executive of the General Authority for Investment and Free Zones, Mohsen Adel, announced the development of the world’s first specialised free zone for the textile industry is currently underway in the Minya Governorate on an area of 2.2 million square meters. As the era of global changes in the textile industry takes place, Egypt has to secure its place in the industry and attract investments. With competitive advantages over East Asian countries with its convenient geographical location, consumer market, free trade agreements with COMESA, availability of labour and suitable investment atmosphere, the Middle East region has unlimited potential to flourish in this industry.
Free zones, by definition, are areas where to encourage economic activities companies are taxed very lightly or not at all. To make most of the shift in the textile industry from the East to other regions, the initiation of the free zone for the textile industry is all set to play a major role in the Egyptian economy in the years to come. In the country’s overall imports, the textile sector accounts for 6% and in the case of exports, 4%. Imports from the US stood at $49 billion during the first nine months of 2018 while the exports to the US reached $18 billion. It is of utmost importance to point out that free zones have recorded exports worth $14.7 billion dollars from January to September 2018 which is an increase of $1.1 billion compared to the same period in 2017.