Egypt’s Karnak Garment to build garment factory in Sadat City’s CPC Industrial Complex

Egyptian firm Karnak Garments is building a USD 15 mn garment factory in Sadat City’s CPC Industrial Complex, expected to start operations in May 2027, according to a statement. The facility will use at least 50% local materials to produce garments exclusively for export to the US and the European Union.

Why it matters: Private freezones — including the one housing this facility — are a powerful incentive for exporters, as they bring the customs border directly to the factory gate. This removes port delays and slashes shipping costs. The project also supports the country’s goal to reach USD 12 bn in annual textile and garment exports by 2031, Egyptian Cotton Association Chairman Wael Olama previously told us. Textile companies — including Turkish and Chinese firms — are increasingly moving to Egypt to avoid rising costs and supply chain delays in Asia and Turkey.