GAFI discusses $100M textile complex with Fountain Set Limited

Updated 12/9/2025 2:56:00 PM

Arab Finance: The General Authority for Investment and Free Zones (GAFI) is in talks with Fountain Set Limited over the establishment of a $100 million textile industrial complex, as the Chinese manufacturer considers expanding its presence in Egypt’s spinning and weaving sector, as per a statement.

GAFI CEO Hossam Heiba met with a delegation from Fountain Set Limited, one of China’s major textile producers, along with representatives from Elegance Apparel Garments Freezone, which operates in the Shebin El-Kom Free Zone.

The discussions focused on Fountain Set’s plan to set up a new spinning and weaving factory on a 200,000-square-meter plot within a free zone or special economic zone.

The project is expected to create nearly 1,500 direct jobs and serve as a manufacturing and export center for European and African markets. The meeting also reviewed expansion plans by Elegance Apparel Garments Freezone to increase production capacity.

Heiba said Egypt’s industrial infrastructure is prepared to receive new investment.

He noted that the government has invested more than $4 billion to modernize public sector factories, including importing European equipment, while offering various partnership models for foreign investors, such as ownership, leasing, and usufruct rights.

He outlined the differences between public and private free zones and special economic zones, explaining that the range of systems is intended to give investors flexible options based on the nature of their projects.

He added that Egypt’s location, trade agreements, and labor market support its position as a base for export-focused textile industries.

Heiba also pointed to the existing spinning and weaving capacities in El-Mahalla El-Kubra, saying their production capabilities and industrial infrastructure can support integration with new investments and improve the use of available expertise and equipment.

He reaffirmed that textiles and spinning are priority sectors due to their role in increasing exports, strengthening industrial activity, and generating employment.