Skip links

Elsewedy Industrial Development Signs Agreement for a Private Free Zone with The Chinese Kingdom Holdings Limited, with Investments nearly $60 Million

Mohamed AlKammah: The agreement aligns with the Egyptian government’s vision to double textile and garment exports by 2026. Cairo, January 12, 2025 – Elsewedy Industrial Development, a subsidiary of Elsewedy Electric, signed an agreement to allocate a 50,000-square-meter plot in "Industria Sadat" city with Kingdom Holdings Limited, one of the world’s largest companies in the textile industries, for establishing a private free zone, facilitated by the Egyptian Commercial Services (ECS). This collaboration aims to enhance trade relations between Egypt and China, attract more foreign direct investments to the Egyptian market, promote the growth of the industrial sector, and boost Egyptian exports. As per the agreement, Kingdom Group will invest a total of nearly $60 million in "Industria Sadat" project to establish its first state-of-the-art textile factory in Egypt, equipped with cutting-edge production technologies. This project is part of Egypt’s integrated plan to add value to the textile sector. The signing ceremony was witnessed by Mr. Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), Mr. Yehia El-Wathik Bellah, Minister Plenipotentiary Head of the Egyptian Commercial Service, and Eng. Ahmed Elsewedy, President & CEO of Elsewedy Electric, , and the agreement was signed by Eng. Mohamed AlKammah, CEO of Elsewedy Industrial Development, and Mr. Ren Weiming, Chairman and CEO of Kingdom Holdings Limited. Eng. Mohamed AlKammah expressed his delight at signing the agreement, emphasizing that the textile industry is one of Egypt’s most competitive sectors. AlKammah highlighted the addition this project brings to the industrial landscape of Industria Sadat, further diversifying the region’s industrial base. Furthermore, he affirmed that Egypt offers promising investment opportunities, especially in the textile sector. “Elsewedy Industrial Development is committed to attracting foreign investments and supporting international investors in collaboration with the General Authority for Investment and Free Zones. This agreement establishes the second private free zone in Industria Sadat as part of Elsewedy Group’s support for export-oriented projects.” AlKammah added that the agreement aligns with the Egyptian government’s vision to double textile and garment exports by 2026, boosting the national economy and positioning Egypt as an attractive investment destination. It is worthy to note that the textile sector export reached $1.2 billion in 2023 and is expected to hit $1.4 billion by 2025, driven by enhanced competitiveness and international partnerships. Mr. Ren Weiming: We are optimistic about Egypt's development and have great confidence in its business environment. This is our first investment project in Egypt, and its success will serve as the starting point for our continued investments in the country. Therefore, we are committed to working with Egyptian government authorities and outstanding local enterprises to make our project a benchmark and a true representation of Egyptian manufacturing excellence. Yahya Elwathik Bella commented that the efforts of the Commercial Representation Office in Shanghai over the past year succeeded in convincing the Chinese company Kingdom Holdings, which specializes in the production of fabrics and textiles, to include Egypt among its target markets for expansion. This resulted in organizing seven visits by the company to Egypt between March and September 2023 to study the establishment of a project for yarn production, with estimated initial phase investments of approximately $60 million. These efforts culminated in the allocation of a 50,000-square-meter plot of land for the company's project in one of the private industrial zones. He also noted that the coming period will witness intensified communications with Chinese companies to initiate their projects in the Egyptian market. Hossam Heiba, "The new factory, scheduled to start operations in 2026, will achieve an annual production capacity of nearly 4,000 tons of linen yarn, generating estimated annual sales of $30 million and creating approximately 500 job opportunities for Egyptian youth."