Egypt eyes garment export growth to attract foreign investment
Abdel Salam noted that Egypt's favorable investment climate is attracting increased attention from international manufacturers, thanks to its strong economic fundamentals and competitive production environment. 'Egypt offers one of the most cost-efficient operational landscapes in the region,' he said.
Recent studies highlight key advantages: electricity costs average $0.07/kWh in Egypt, compared to $0.12 in many other markets. Water prices range between $0.30 and $0.50 per cubic meter, while in competing countries they often exceed $1.50. Construction costs in Egypt range from $500 to $800 per square meter, nearly half of what they can be elsewhere. The country's VAT stands at 14%, compared to up to 18% in other nations, and wages remain competitive relative to regional benchmarks.
'These cost efficiencies have led numerous global players in the apparel industry to initiate or expand operations in Egypt,' Abdel Salam said, citing rising investor interest in establishing new projects across the sector.
Among the most recent developments is the expansion of Turkish industrial conglomerate Shahinler Group, which is actively coordinating with Egyptian authorities to explore new investment opportunities. Shahinler Group Chairperson Kamal Shahin recently held meetings with Minister of Public Enterprises Mohamed El-Shimy and officials from the Industrial Development Authority, facilitated by the Chamber.
The discussions focused on mechanisms for collaboration and plans to relocate parts of Shahinler's manufacturing operations to Egypt—specifically in cotton, spinning, weaving, and ready-made garment production.
With exports to 170 countries, Shahinler has already invested $50m in Egypt. The group's expansion is expected to generate up to 3,000 new jobs and will require land allocations ranging from 50,000 to 100,000 square meters. Annual production from the new facilities is projected to reach 3 million pieces of formal wear.
'This is a clear signal that Egypt is not only a viable alternative but a preferred destination for global textile production,' Abdel Salam emphasized, adding that the sector's export-oriented growth strategy will continue to play a critical role in attracting foreign capital and creating employment.
© 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).
Daily News Egypt
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
5 hours ago
- Zawya
Dubai Land Department, Masdar City sign memorandum to enable free zone companies to own properties in Dubai
Dubai Land Department signed a memorandum of cooperation with Masdar City, aiming to enable companies and establishments operating in the free zones under Masdar City to own land plots and properties under the freehold ownership system in Dubai, within a clear and comprehensive regulatory framework. This step is part of Dubai Land Department's efforts to enhance the competitiveness of the emirate's real estate market and expand the investor base by creating new opportunities for free zone companies, in line with the objectives of the Dubai Real Estate Strategy 2033. The MoC was signed by Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, and Ahmed Baghoum, Chief Executive Officer of Masdar City, during an official ceremony held in Dubai, in the presence of several directors from both sides. Majid Al Marri said, 'We continue to expand access to Dubai's freehold market through collaborative models that enhance the integration of the real estate ecosystem across the UAE. Enabling companies registered in free zones to own property in the emirate aligns with our vision of building a more open investment environment that offers diverse ownership options. We consider this a strategic step that adds significant value to the objectives of the Dubai Economic Agenda D33 by diversifying the investor base and stimulating new investment flows that contribute to market growth and sustainability, all in line with our leadership's vision of making Dubai the best city in the world to live and work.' Ahmed Baghoum said, "This initiative highlights Masdar City's commitment to supporting businesses with innovative solutions that address their needs. By simplifying property registration processes for companies operating within Masdar City's Free Zones, we are enabling them to expand their operations seamlessly while contributing to the UAE's long-term growth. This partnership highlights our shared vision with DLD to create a business-friendly environment and reinforces Masdar City's position as a global hub for innovation and investment." Under this memorandum, both parties will collaborate on developing an integrated framework that includes clear eligibility criteria for establishments, along with the legal and administrative procedures required to complete the registration process. The cooperation will also ensure direct coordination between the Dubai Land Department and the Free Zone Authority to simplify and expedite procedures, enable smooth data exchange, and implement an advanced digital system for online applications, request tracking, and document verification, enhancing accuracy and transparency. Additionally, the partnership will provide guidance and support to companies, enabling them to understand the legal and procedural requirements better and ultimately fostering an environment that encourages ownership and investment. This collaboration aims to support companies' expansion plans by providing practical solutions that facilitate their entry into Dubai's real estate market, one of the most dynamic and thriving markets in the region. It also reflects Dubai Land Department's commitment to adopting open policies that enhance market flexibility, support national efforts to attract high-quality investments, and contribute to building a more integrated business environment across the UAE.
Arabian Business
6 hours ago
- Arabian Business
Sharjah real estate: Property transactions surge 48% to $7.35bn in H1 2025
Sharjah's real estate sector recorded AED 27 billion in transactions during the first half of 2025, marking a 48.1 per cent increase from AED 18.2 billion in the same period last year. The Sharjah Real Estate Registration Department processed 48,059 transactions, representing a 3.3 per cent increase compared to 46,524 transactions during the same period in 2024. View this post on Instagram A post shared by دائرة التسجيل العقاري بالشارقة (@shjrerd) The performance reflects growing investor confidence in Sharjah's real estate sector, supported by economic stability, investor-friendly legislation, and infrastructure developments. The diversity of investor nationalities has reinforced the emirate's position as a competitive property market. Abdulaziz Ahmed Al-Shamsi, Director-General of the Sharjah Real Estate Registration Department, said: 'This significant increase is a direct translation of the firm confidence in the emirate's real estate sector, both locally and internationally, and the continuous support of His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, and the keen follow-up of H.H. Sheikh Sultan bin Muhammad bin Sultan Al Qasimi, Crown Prince, Deputy Ruler of Sharjah, and Chairman of Sharjah's Executive Council, which has firmly positioned Sharjah on the regional and international real estate sector.' Transaction growth outpaces last year Sales transactions reached 15,686 with a value of AED 21.2 billion, distributed across 214 areas and covering a total area of 90 million square feet. This represents a 45.1 per cent increase from 10,809 sales in the first half of 2024. The Muwailih Commercial area led with 2,898 transactions worth AED 3.5 billion, followed by Al-Belaida with 1,593 transactions valued at AED 1.3 billion, and Al-Metraq with 1,387 transactions worth AED 430 million. Residential transactions dominated the market with 11,459 transactions, representing 74.6 per cent of the total. Industrial properties accounted for 3,195 transactions (20.8 per cent), commercial properties recorded 603 transactions (4 per cent), and agricultural properties registered 95 transactions (0.6 per cent). Mortgage transactions reached 2,582 with a total value of AED 5.7 billion, completed through 24 financing entities. The growth in mortgage transactions reflects the partnership between the real estate sector and financing institutions in the emirate. Tilal topped mortgage transactions with 194 deals valued at AED 339.2 million, followed by Muwailih Commercial with 167 transactions worth AED 707.3 million, Um Fanain with 146 transactions valued at AED 222.6 million, and Al-Saja'a Industrial with 71 transactions worth AED 204.8 million. Eight new real estate projects were registered during the period, including four residential complexes in Muwailih Commercial, Al-Tay, and Al-Tay West. Four new towers were also registered—two industrial in Al-Saja'a Industrial, and two residential/commercial towers in Al-Belaida and Al-Waha. Emiratis dominate Sharjah real estate A total of 109 nationalities invested in Sharjah's real estate market in the first half of 2025. UAE nationals accounted for AED 12.2 billion in investments across 14,307 properties, representing 45.2 per cent of total investments. GCC nationals invested AED 1.2 billion across 889 properties (4.6 per cent), while other Arab investors contributed AED 5.4 billion through 4,057 properties (20.1 per cent). Investments by other nationalities totalled AED 8.1 billion across 3,878 properties, representing 30.1 per cent of the total investment value. The number of foreign investors in Sharjah rose 39.4 per cent year-on-year to 6,662, with 7,448 properties traded, up 40.6 per cent. By number of properties traded, Emirati investors led with 14,307 properties, followed by investors from India (1,525), Syria (969), Egypt (685), Jordan (678), and Iraq (576).
The National
6 hours ago
- The National
Masdar City companies to be allowed Dubai property ownership
Abu Dhabi's Masdar City and the Dubai Land Department have teamed up to allow the former's free zone companies to own properties in Dubai, in a bid to boost real estate investment across the UAE. The two entities will work on developing a comprehensive regulatory framework for the programme, which will help Masdar companies own plots and properties under the freehold system, the DLD said on Thursday. Freehold properties are those in which an individual owns both the property and the land it is built upon. The framework will define the eligibility criteria, and legal and administrative procedures that will 'ensure direct co-ordination between the DLD and the free zone authority', the DLD said. 'By simplifying property registration processes for companies operating within Masdar City's free zones, we are enabling them to expand their operations seamlessly while contributing to the UAE's long-term growth, said Ahmed Baghoum, chief executive of Masdar City. Dubai's property market has been booming in recent years, having benefitted from government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and overall growth in the UAE's economy on diversification efforts. This month, a new scheme was also launched to help Emiratis and UAE residents who do not own any freehold residential property in the emirate get on the property ladder. Under the initiative, first-time buyers will have priority access to new homes from participating developers as well as existing inventory, discounts or limited-time offers on the sales price of off-plan units, flexible payment plans and 'improved' mortgage options with better interest rates, faster approval times and reduced fees. The DLD expects 5,000 new investors to enter the market this year following the initiative. On Sunday, the Dubai Media Office said that the volume and value of real estate transactions in Dubai rose sharply in the first half of the year, amid the entry of more than 59,000 new investors into the market, according to DLD data. On Wednesday, property consultancy Knight Frank showed that more than 51,000 homes were sold in Dubai in the second quarter of 2025, which was a year-on-year increase of 22.8 per cent, marking a quarterly record amid strong demand from buyers. Total home sales surpassed 94,000, putting the market firmly 'on track to exceed' 169,000 transactions recorded in 2024, it added. 'We continue to expand access to Dubai's freehold market through collaborative models that enhance the integration of the real estate ecosystem across the UAE,' said Majid Al Marri, chief executive of the DLD's Real Estate Registration Sector in Dubai. 'Enabling companies registered in free zones to own property in the emirate aligns with our vision of building a more open investment environment that offers diverse ownership options.'
