More Chinese manufacturers eye Egypt as government ramps up support: Egypt wants to double Chinese investment to USD 16 bn over the next four years, Trade Commissioner Abdelaziz El Sherif said last week. The push is part of a wider plan to attract USD 15 bn in FDI this year through Egypt’s commercial service offices, up from USD 10.3 bn in 2024.

Textiles at the heart of Beijing's interest: Investment Authority head Hossam Heiba met with a visiting Chinese delegation last week to discuss opportunities for localizing integrated value chains in Egypt’s textiles and ready-made garments sector. China remains the global leader in investment and exports in this labor-intensive industry — and Egypt sees growing the sector as a key way to boost exports and create jobs.

Gov’t races to meet the demand: The government is fast-tracking infrastructure upgrades in the Suez Canal Economic Zone, Minya, Fayoum, and Sadat City to cater to the needs of Chinese manufacturers, Heiba said.

A new gateway for Egyptian exports: China is opening its doors wider to African exports, with Foreign Minister Wang Yi announcing last month that Beijing will offer full customs exemptions to all African nations with which it has diplomatic ties. The agreement — which includes middle-income countries like Egypt — could unlock new export potential and help narrow Egypt’s trade gap.

Chinese and Turkish investors drive the shift: Industrial zones developed by Industrial Development Group (IDG) have seen growing interest from Chinese and Southeast Asian companies over the past 12–18 months as supply chain shifts push companies to diversify their manufacturing bases, an IDG representative told Enterprise. Polaris Parks has also seen a surge in interest from both Chinese and Turkish manufacturers looking to de-risk their operations by setting up in Egypt — especially as geopolitical tensions and US tariffs push companies to relocate from China, General Manager Basel Shaera told us.

Why Egypt? A strategic location, strong infrastructure, and lower operating costs make Egypt an attractive alternative to regional peers like Morocco and Jordan, Shaera said.

Engineering, textiles, and electronics top the list: These are the hottest sectors for new investments in IDG’s zones, primarily for export to Europe, Africa, and the Middle East, the company rep said. Chinese investments are focusing on engineering, chemicals, building materials, and textiles, while Turkish investors are especially keen on textiles. Egyptian players, meanwhile, continue to show strong interest in food, pharma, and home appliances.

Industrial zones under higher demand — but still within capacity: While demand is high — especially in areas like Robbiki 2 — IDG says its zones can still absorb it thanks to prior infrastructure investment and planning. Utilities including water, energy, roads, and telecoms remain readily available.

Ready-to-go factories are what Chinese investors want: While appetite for land is still strong, many investors — particularly from Asia — are asking for plug-and-play factories that can launch operations immediately. The current supply doesn’t meet demand, Shaera noted.

Investment alignment to attract strategic industries: IDG and Polaris are coordinating with the government to steer investment into priority sectors, particularly those that support import substitution. Both firms are also proactively targeting investors in sectors the state has flagged for localization, relying on their knowledge of market gaps.

Helping foreign investors land smoothly: Developers are offering tailored support — from language and cultural familiarity to assistance navigating the bureaucracy, choosing contractors, and setting up shop.

Red tape easing is making a difference: The government reforms are helping, particularly moves to streamline approvals and licenses. That’s making Egypt more appealing to investors, the industrial developers told us.

Big promises and real action: Prime Minister Moustafa Madbouly last year pledged that no industrial facility would be shut down without his personal approval — helping bring some idle factories back online. Meanwhile, Egypt’s new digital platform for industrial investments launched in September promises to allocate land and issue licenses within just one week for certain projects based on a risk classification system.

But more is still needed: Despite progress, further streamlining, digitization, and regulatory clarity will be essential if Egypt is to compete with countries like Saudi Arabia, which is beginning to pull some investors away from the Egyptian market, IDG says. Exchange rate stability is also top of mind for foreign players, Shaera added.