Elsewedy Industrial Development, a subsidiary of Elsewedy Electric, has signed a major $60 million deal with China’s Kingdom Holdings, a global leader in the textile industry, to establish a private free zone in Egypt’s Industria Sadat. The deal, supported by the Egyptian Commercial Service (ECS) and brokered by the General Authority for Investments and Free Zones (GAFI), will lead to the construction of a 50,000 square meter plant focused on advanced textile manufacturing.
The agreement was signed by Mohamed AlKammah, CEO of Elsewedy Industrial Development, and Ren Weiming, Chairman and CEO of Kingdom Holdings. The collaboration represents a key milestone in Egypt’s efforts to increase the value of its textile sector, with Kingdom Holdings committing to invest approximately $60 million to establish its first advanced textile factory in Egypt, equipped with state-of-the-art manufacturing technologies.
The project is in line with Egypt’s broader strategy to promote growth in the industrial sector, increase exports and strengthen economic ties with China. AlKammah highlighted the added value this project will bring to the industrial landscape of Industria Sadat, which will help diversify the industrial base of the region. He also noted that the textile sector remains one of the most competitive in Egypt and offers promising investment opportunities.
“This agreement marks the establishment of a second private free zone in Industria Sadat and reaffirms our commitment to export-oriented projects,” AlKammah said. “This initiative is fully in line with the Egyptian government’s vision to double textile and apparel exports by 2026. Egypt’s textile exports reached $1.2 billion in 2023 and are projected to grow to $1.4 billion by 2025, and thanks to increased competitiveness and strong international partnerships.”
Commenting on the partnership, Ren Weiming said: “This is our first investment project in Egypt and we are determined to succeed. It will serve as a starting point for our continued investment in the country and we aim to work closely with the Egyptian government authorities and local businesses to make this project a benchmark for Egyptian manufacturing excellence.”
Yahya ElWathik Bella, Minister Plenipotentiary and Head of the Egyptian Commercial Service, highlighted the key role of the Shanghai Trade Representative in facilitating the partnership. These efforts led to seven visits by Kingdom Holdings to Egypt in 2023, culminating in an agreement on a yarn production project that is expected to attract an estimated initial investment of $60 million.
Hossam Heiba, Director General 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, boost exports and improve the global competitiveness of Egyptian products. In addition, the trade agreements will provide access to Egyptian goods to 3 billion consumers worldwide.
The new factory is scheduled to start operations in 2026 and will have an annual production capacity of 5,000 tons of linen yarn. It is expected to bring in $300 million in revenue and create 1,500 jobs for Egyptian youth, further contributing to the country’s economic development.
