Türkçe
العربية
Español
What to Produce in Egypt? The Sectors of the Future
In the previous installment, I discussed the economic and commercial opportunities in Egypt that extend far beyond its domestic market of 120 million people. Regional trade structures like COMESA, TFTA, AfCFTA, and GAFTA create opportunities for companies producing in Egypt to reach wider markets. However, the real question now points elsewhere:
What to produce in Egypt?
Because relying solely on the size of the market is not enough when making an investment decision. What matters is choosing the right sector, engaging in competitive production, and delivering the manufactured product to the broadest possible markets.
When evaluating Egypt’s industrial story for the coming years, there are two sectors that I particularly highlight:
Textiles and food.
Alongside these, I believe sectors such as machinery, packaging, construction materials, automotive supply industry, energy, and logistics also hold significant opportunities.
However, we must first discuss the two locomotive sectors.
Textiles: One of the Locomotive Sectors of the Future
I believe that textiles will attain a much more prominent position in Egypt's industrial future.
Textiles and ready-to-wear are not new to Egypt. On the contrary, they have long been among the country's primary production and export areas. However, I believe the sector's role needs to expand even further in the period ahead. There are several important reasons for this.
First is the labor advantage. Textiles are a labor-intensive sector. Therefore, competitive labor costs present a significant advantage for international producers. Yet, low costs alone will not suffice in the future; the workforce must be supported by training, technology, and modern production systems.
The second major advantage is Egypt’s geographical location. Egypt sits at a vital crossroad connecting Africa, the Arab world, the Middle East, and Europe. Consequently, the target market for a modern textile factory established in Egypt should not be limited to Egypt alone: Produce in Egypt, sell to the region and the world.
The third advantage is the overall production cost edge achievable through proper investment planning. When labor, land, logistics, supply, and operational expenses are managed correctly, Egypt can become a highly competitive manufacturing hub for international textile players.
However, a crucial distinction must be made here. Egypt's future should not simply be that of a "cheap production country." The goal must be quality production, high added value, fast delivery, international standards, and a robust export capacity.
When Turkey's manufacturing, technology, and export experience in textiles are combined with Egypt's geographical and cost advantages, a tremendously powerful production model can emerge. For this reason, I view textiles not as a traditional sector inherited from Egypt's past, but as one of the strategic sectors capable of carrying its future.
Food and Agro-Industry: From the Nile to the World
The second major opportunity area is food and agriculture-based industry. Here, one of Egypt's greatest natural advantages comes into play: the Nile River and the agricultural production areas it creates. Egypt possesses a substantial production infrastructure for growing various agricultural goods. Strawberries, citrus fruits, grapes, potatoes, onions, garlic, olives, and many other products hold significant potential in both domestic and export markets.
Strawberries, in particular, are among Egypt's strong food export items. Today, fresh strawberries are vital, but frozen strawberries push Egypt's production and export strength even further in this field.
However, the new area I want to draw special attention to for the coming period is: Dried strawberries.
Because processing and adding value to agricultural products rather than just raw production is crucial for the future of Egypt's food industry. Fresh produce has a limited lifespan; frozen produce lasts longer; while dried produce enters different usage areas, creating brand-new markets.
This approach applies not just to strawberries, but to olives, onions, garlic, fruits, and vegetables. A similar transformation can take place across all these products: From field to factory, from factory to world markets.
The real opportunity for Egypt in the food sector lies right here: not just producing agricultural items, but processing, drying, freezing, packaging, branding, and exporting them. Thus, agricultural production truly transforms into industrial and export power.
Combining Turkey's expertise in food processing technology, drying systems, packaging, cold chain, and machinery manufacturing with Egypt's agricultural production capacity opens up major opportunities here. My vision for the future of the food sector is quite clear: Products originating from the Nile must gain value in Egyptian factories and reach tables worldwide.
Machinery, Packaging, and Construction Materials
Alongside textiles and food, the machinery and equipment sector must also grow as industrialization progresses. As a country industrializes, it needs not only consumer goods but also the machinery required by operating factories. Food machinery, agricultural machinery, packaging machinery, industrial equipment, and production lines are key areas in this regard.
Similarly, the packaging sector will become increasingly important with the growth of food and exports. Construction materials serve as a natural complement to housing, infrastructure, and industrial investments. Opportunities exist in both domestic markets and regional exports in fields such as cement, ceramics, glass, insulation, construction chemicals, and metal products.
Automotive and Supply Industry
One of the sectors that could gain even more prominence in Egypt's future is automotive. However, we should not limit our thinking solely to automobile manufacturing. The truly massive ecosystem lies in spare parts, plastic components, metal parts, wiring harnesses, electronic equipment, and other sub-industry products. A strong automotive industry builds a powerful supplier network around it. Egypt's goal should not merely be a country assembling cars, but becoming one of the pivotal hubs of the regional automotive supply chain.
Energy and Logistics
When discussing the industry of the future, energy and logistics cannot be separated from the picture. A factory's competitiveness is not determined solely by product quality; energy costs, the time it takes for raw materials to reach the factory, and the transportation cost of finished goods to customers are all parts of production.
Therefore, Egypt's energy infrastructure, renewable energy investments, ports, the Suez Canal, and logistics centers are of great importance for the future of industry. Sometimes, the distance between the factory and the port is as important as the factory itself. If Egypt can utilize this advantage more effectively, it can forge a powerful regional hub connecting production with logistics.
The Real Issue Is Not What We Produce, But How We Produce It
When evaluating all these sectors, the most important point for me is this: Egypt's future will not be shaped merely by building more factories, but by conducting more efficient, higher quality, and more competitive production.
Building a factory might be easy. The real challenge is operating it to global standards:
Maintaining continuous quality,
Utilizing energy efficiently,
Training qualified human personnel,
Establishing the right supply chain,
And most importantly, making what is produced competitive in the global market.
This is where a tremendous opportunity lies for Egypt.
Turkey and Egypt: Two Complementary Production Powers
Looking from Turkey's perspective, I do not see the opportunity simply as an "investment in Egypt." A broader perspective is needed:
Technology from Turkey...
Production in Egypt...
Sales in Africa and the Arab world...
Exports to Europe...
When this model is applied in the right sectors, it can create not just trade between the two countries, but a shared regional production ecosystem.
Final Word
Looking at Egypt's industrial story for the coming years, I see a very clear picture:
Textiles must grow.
Food must be processed further.
Agriculture must merge with industry.
Machinery and equipment manufacturing must advance.
The automotive supply industry must strengthen.
Packaging and construction materials must expand.
Energy and logistics infrastructure must pave the way for production.
Above all these, however, there must be a single goal: Produce in Egypt and sell to the world.
Because the issue is no longer just producing for Egypt's market of 120 million people. It is looking beyond that 120 million market—toward Africa, the Arab world, Europe, and increasingly, global markets. The real opportunity for Egypt lies right here.
Yet, every opportunity comes with a question mark. What are the most significant obstacles standing in the way of this massive potential? Which risks should investors consider? What are the core economic problems Egypt needs to solve?
And most importantly... Will Egypt truly be able to seize this great opportunity as it heads toward 2030?
In the next installment of our "Where is Egypt Headed?" series, we will discuss these topics. Because it is time to talk not only about Egypt's opportunities, but also about the exams Egypt has to pass.
See you in the next chapter.
