It is important to shed light on the development of the textile industry in Egypt, one of the leading industries for the country's economic development in many periods in addition to being one of the major suppliers of cotton and other primary materials to manufacturers worldwide. The Egyptian textile industry is one of the country's most famous productive industries. It began in ancient Egypt in 5500 BCE, and during the Pharaonic era the ancient Egyptians were pioneers in the textile industry, in particular in spinning and weaving. The industry continued to develop during the Ptolemaic period, the Coptic era, the Islamic era and then the Mohamed Ali period when Egypt had one of the most productive cotton industries in the world and emerged on the world export map. Long staple cotton was introduced in 1828, and the first textile factories were established in 1899. In the 20th century, the Egyptian industrialist and economist Talaat Harb boosted the textile industry when he set up the Misr Al-Mahalla Textile Company, which began production in 1930. The continuity of the industry over decades has proved its strategic necessity as an engine for the development and growth of the Egyptian economy. The importance of the industry has steadily increased due to the competitive advantages of Egyptian cotton and the manufacturing of high-quality readymade garments. The textile industry is also considered to be a major labour-intensive industry. Nowadays, Egypt's textile industry represents around three per cent of total GDP and is the third-largest industrial sector with a 15 per cent share of non-petroleum exports. It has more than 4,000 factories and around 300,000 workers. It provides tremendous job opportunities, and it is related to other complementary industries. It employs about one-third of the industrial labour force. The textile industry also plays a critical role in generating job and investment opportunities, and Egypt's low labour costs give the country a competitive advantage in luring foreign direct investment. Furthermore, the exports of the textile industry are an important source of foreign currency. Egypt's geographical location and unique preferential trade agreements make it one of the most attractive destinations for foreign investment and a hub for competitive exports to regional and international markets. Today, the Egyptian government is working on maximising the competitiveness of Egyptian exports and opening up new channels for trade exchange through the country's membership of free trade areas (FTAs) and its consolidating trade ties with Asian, Arab and European countries, including through the Egypt-EU Association Agreement, the country's qualifying industrial zones (QIZ), the European Free Trade Association (EFTA), the Southern Common Market (MERCOSUR) and the Common Market for Eastern and Southern Africa (COMESA). It is also upgrading manufacturing techniques, replacing old equipment with new and more efficient machines, promoting the energy efficiency of spinning and weaving machines, improving the skills of the labour force and transferring knowledge to meet the preferences of international markets. The textile industry represents one of the top five industries for the Ministry of Industry and Foreign Trade in its plans to develop the country's industries to 2020. The ministry coordinates closely with the ministries of agriculture and the public enterprise sector to shape agreements on cotton policies and agriculture that will serve the development of the textile industry. In the meantime, the Ministry of Agriculture also works on developing the cotton system, so that it can contribute to meet the needs of the textile sector. This is done by increasing the cultivated areas of cotton, now amounting to 336,000 feddans, boosting productivity to eight qintars (160 kg) per feddan, and expanding the mechanised farming of medium staple cotton, especially in large areas of Upper Egypt, in order to provide for the needs of local industry, given that manufacturing cotton increases added value and revenue from exports. The government's integrated development plans encompass the marketing and training of employees, as well as the restructuring and modernising of production lines in the textile industry. Plans to modernise the state-owned textile sector amount to an investment of around LE24 billion. They include the modernisation of the Cotton and Textile Industries Holding Company and more than 30 other affiliated companies. The Ministry of Public Enterprise is also promoting public-private partnerships (PPP) to increase the efficient management of public-sector enterprises. Improved management is a key pillar for enhancing the performance of public enterprises, and in addition to continuing its initial public offering (IPO) programme for many public-sector companies, it is connecting Egypt's city of Ain Sokhna with East Africa to promote Egyptian exports to African markets. The Ministry of Trade and Industry has announced the establishment of the largest textile park in Egypt that will include three phases to be developed over four years. The park, being built by the Chinese holding firm Mankai, will cover more than 3,000,000 square metres in Sadat City and will comprise 592 factories that use digital automation techniques. There will also be a training centre to bring workers up to speed with the spinning and weaving industry's latest technologies, guaranteeing the supply of skilled labour to handle new production techniques. It can be seen that the textile industry has played and is playing a crucial role in Egypt's economic and social development. The continuous and complementary coordination between the different ministries is also essential for harnessing the potential of the textile industry. 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The writer is a lecturer at the Faculty of Economics and Political Science at Cairo University.
