The Chinese firm ManKai Investment announced that agreed with the Egyptian government to include the factories of the new textile city into the Qualifying Industrial Zone(QIZ) agreement, according to its Chairman Ma Yaojin. He further told Amwal Al Ghad that these factories would be allowed to export its production to U.S under the new agreement. The project in the city will be spread over an area of 3.1 million sq. mt. and house 592 factories located in Sadat City. The new textile city will be implemented over three phases each phase will be on built up area of 600,000 square metre. The Armed Forces Engineering Authority is responsible for executing the infrastructure works of the project. Yaojin added that his company is planning to deliver the first phase of 141 factories to investors and companies before the end of the current year. In December 14, 2004, the Egyptian government signed the Qualifying Industrial Zones Protocol with the US and Israel. The Protocol allows for duty-free entry into the US for products manufactured by qualified companies operating within designated geographic locations in Egypt which satisfy the currently agreed upon Israeli content of 10.5%.
