Turkish companies invested around USD 500 mn in Egypt in 2025

🏭 Turkish companies invested some USD 500 mn in Egypt this year, Matta Beshay, member of the Egyptian-Turkish Business Council, told EnterpriseAM. Investors are shifting from outsourcing to building independent factories and production lines, particularly in the Suez Canal Economic Zone’s (SCZone) Qantara West.

Total Turkish FDI in Egypt has now surpassed USD 3 bn, spread across some 1.7k companies, Beshay said. This includes around 200 factories in textiles, garments, and chemicals, concentrated in the 10th of Ramadan, Sadat City, and the SCZone.

Four Turkish factories worth USD 200 mn are currently under development in the SCZone, a source in the zone’s projects sector told EnterpriseAM. The lineup includes Eroglu Holding ’s USD 40 mn facility on a 62k sqm plot in Qantara West, slated to come online in 2025 and Hayat Egypt’s two new plants, which are planned to launch in 1Q 2026 and and late 2026 with total investments of USD 80 mn, catering entirely to exports.

These companies are part of a wider group of 18 firms that have signed on to establish operations in the SCZone, investing a total of USD 793.8 mn in the SCZone to date. This includes 10 companies in Sokhna (USD 508 mn) and eight in Qantara West (USD 285.8 mn).

Why Egypt? Financing challenges at home are driving Turkish expansion abroad, with banks in Turkey cutting off lending to several industrial sectors, particularly textiles and light industries, a source at the Egyptian-Turkish Business Council told EnterpriseAM. Investors are turning to Egypt as an ideal production base, supported by its EU partnership agreement and long-term European supply commitments. Low investment requirements in textiles have eased setup, and the sector is set to evolve from initial outsourcing into full-scale manufacturing for exports by year-end, the source said.

More projects in the pipeline: Klepsan will establish Egypt’s largest sanitaryware plant plant in the 6th of October, Beshay said. The 30k sqm facility is expected to break ground in October, following the receipt of land licensing, with an initial USD 7–10 mn investment (c. EGP 400 mn). It will produce water meters and valves to localize manufacturing. Looking ahead, at least 10 Turkish factories are expected to launch next year, beginning operations and exports, the SCZone source told us.

KCG Textile Egypt, a local subsidiary of Turkish group Kucukalik, will launch its USD 24 mn spinning factory in 8 months, with the 16.5k sqm facility being based in Tenth of Ramadan, KCG Textile Egypt’s Production Director Selim Aksiyote (LinkedIn) told EnterpriseAM. Looking ahead, the company plans to invest in a new 10k sqm confectionery facility, which would allow it to employ an additional 1.3k workers.

A Turkish industrial zone? Egypt could soon see the launch of a dedicated Turkish industrial zone in the SCZone, with studies already underway, head of the Home Appliances Chamber at the Federation of Egyptian Industries Hassan Mabrouk told EnterpriseAM. The existing Turkish cluster in the zone has already attracted manufacturers and investors, and a dedicated zone, similar to the Chinese and other industrial areas, could draw even more companies, Mabrouk said.

Local calls for reform on land ownership: Egyptian factories have also been invited to expand into the zone, but some have called for the government to restrict foreign companies to usufruct rights of 50 years while allowing Egyptian companies to own land outright, Mabrouk said. This would spur a manufacturing boom for local factories alongside Turkish appliance makers, he said.