May 27, 2016
Egypt signs deal with China to set up textile zone
May 27, 2016
Egypt and China signed a framework agreement earlier this week on to establish a zone for textile industries in the Egyptian governorate Minya.
The agreement was signed between Egyptian Textile Industries Council and China National Textile and Apparel Council (CNTAC), according to Egyptian news portal Amwal Al Ghad.
Egypt’s Industry and Foreign Trade Minister Tarek Qabil asserted that establishing a comprehensive zone for textiles is an important step for Egypt to reclaim its leading position in Middle East and North Africa since it has potential and wide expertise in the field of weaving and textiles.
The minister made these remarks during his meeting with a delegation of Chinese businessmen headed by CNTAC's Vice-President, Gao Yong. The Chinese mission and Qabil also discussed means of enhancing bilateral cooperation between the two countries in textile field as well as future visions for such important industry in Egypt.
Building the new zone is set to participate directly in achieving strategy of trade ministry to develop textile industry in Egypt besides enhancing the process of economic and social development by attracting more local and foreign investments.
Qabil added that the Ministry agreed with Minya governor to allocate around 1.2 million square meters of land to establish the zone.
He noted that the Egyptian government is paying great attention for this large project and committed to support it.
Textile industries contribute 3 per cent to Egypt's GDP and accommodate around 1.2 million workers and engineers which is 30 per cent of industrial labour in Egypt, the minister said. Qabil pointed out that that the textile industry contributes 16 per cent of Egypt's non-petroleum exports with a revenue of $2.6 billion.
CNTAC delegation head Gao said the visit of the Chinese mission to Egypt targets boosting mutual cooperation between two countries in the field of textiles field as Chinese firms keen on expanding their footprints. Chinese investments in Egypt's textile market are expected to increase, he said.
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