Elsewedy Industrial Development, a subsidiary of Elsewedy Electric, has signed a significant $60 million agreement with China's Kingdom Holdings, a global leader in the textile industry, to establish a private free zone in Egypt's Industria Sadat. The agreement, supported by the Egyptian Commercial Service (ECS) and facilitated by the General Authority for Investment and Free Zones (GAFI), will see the development of a 50,000-square-meter facility focused on advanced textile production. The agreement was signed by Mohamed AlKammah, CEO of Elsewedy Industrial Development, and Ren Weiming, Chairperson and CEO of Kingdom Holdings. This collaboration marks a key milestone in Egypt's efforts to enhance the value of its textile sector, with Kingdom Holdings committing an investment of approximately $60m to establish its first advanced textile factory in Egypt, equipped with state-of-the-art production technologies. The project is aligned with Egypt's broader strategy to foster growth in the industrial sector, boost exports, and strengthen economic ties with China. AlKammah emphasized the added value this project will bring to the industrial landscape of Industria Sadat, which will help diversify the region's industrial base. He also noted that the textile sector remains one of Egypt's most competitive, offering promising investment opportunities. "This agreement marks the establishment of the second private free zone in Industria Sadat, reaffirming our commitment to export-driven projects," AlKammah said. "This initiative aligns perfectly with the Egyptian government's vision to double textile and garment exports by 2026. Egypt's textile exports reached $1.2bn in 2023 and are projected to grow to $1.4bn by 2025, driven by increased competitiveness and strong international partnerships." Ren Weiming, commenting on the partnership, stated: "This is our first investment project in Egypt, and we are committed to making it a success. It will serve as a starting point for our continued investments in the country, and we aim to collaborate closely with Egyptian government authorities and local enterprises to make this project a benchmark for Egyptian manufacturing excellence." Yahya ElWathik Bella, Minister Plenipotentiary and Head of the Egyptian Commercial Service, highlighted the pivotal role of the Commercial Representation Office in Shanghai in facilitating the partnership. These efforts led to seven visits by Kingdom Holdings to Egypt in 2023, culminating in the agreement for the yarn production project, which is expected to attract an estimated initial investment of $60 million. Hossam Heiba, CEO of GAFI, emphasized the authority's efforts to involve the private sector in promoting investment and fostering partnerships in key industries. By combining Egyptian expertise with advanced Chinese textile technologies, the new factory will meet international standards, enhance exports, and improve the global competitiveness of Egyptian products. Additionally, the trade agreements will give Egyptian goods access to 3 billion consumers worldwide. Set to begin operations in 2026, the new factory will have an annual production capacity of 5,000 tonnes of flax yarn. It is expected to generate $300mn in sales and create 1,500 jobs for Egyptian youth, further contributing to the country's economic development.
