SMARTEX 2026 Forum: Boosting Egypt's Textile Industry with Funding and Tech

Experts and officials have highlighted that the industrial financing initiatives and investment incentives offered by the state are a significant opportunity to speed up the modernization of spinning, weaving, and ready-made garment factories. This will boost the sector's competitiveness, increase production rates, and strengthen Egyptian exports. This discussion took place during the SMARTEX 2026 forum, specifically in a session titled "Financing Technology and Machinery: How to Invest in Developing Your Factory?" This was part of a series of specialized sessions at the forum, which explores ways to support digital transformation, sustainability, and enhance the competitiveness of the spinning, weaving, and ready-made garment sector. The forum achieves this by showcasing the latest technological and financial solutions that help companies develop their production capabilities and improve factory efficiency. SMARTEX is recognized as the first specialized forum in Egypt that brings together technology, innovation, sustainability, and the textile sector. Its goal is to support factories in adopting the newest digital and technological solutions, enhance production efficiency, and boost the competitiveness of Egyptian industry in global markets. This is achieved through discussion panels and direct meetings that connect manufacturers, technology providers, government entities, and financing institutions. The forum is organized by Go Global for International Business Development, with the participation of a select group of officials, experts, and representatives from government institutions and the private sector. They gather to discuss the latest global trends in digital transformation, sustainability, and industrial finance, and to present solutions and technologies that support the development of the spinning, weaving, and ready-made garment sector, increasing its export capacity. Dr. Sabry El Shafei, Head of the Industrial Support Unit at the General Authority for Industrial Development, and Tamer Othman, Head of Factoring Sector at Enmaa Company, participated in the session. They presented the most prominent financing initiatives and investment incentives available to manufacturers and entrepreneurs for updating production lines and expanding investments. Dr. Sabry El Shafei stated that the spinning, weaving, and ready-made garment sector is among the top priorities for the Ministry of Industry. He emphasized its role as a key driver for increasing Egyptian exports and creating job opportunities. This focus is reflected in the priority given to allocating industrial lands and benefiting from various financing programs and incentives. He clarified that the incentive system includes provisions from the Investment Law, in addition to geographical incentives and financing initiatives specifically for purchasing machinery and equipment at favorable interest rates. He noted that the Ministry has worked to continue and restructure the industrial financing initiative to align with investors' needs. He added that the Ministry launched a new initiative worth 30 billion Egyptian Pounds, targeting companies ready to receive and install machinery and equipment, especially startups and entrepreneurs. This initiative features simplified procedures and limited technical documentation, contributing to accelerating industrial development. He also mentioned that out of the 150 billion Egyptian Pounds allocated for the industrial financing initiative, 140 billion Egyptian Pounds were designated for factory financing, and 10 billion Egyptian Pounds for financing the purchase of machinery and equipment. He clarified that approximately 60 billion Egyptian Pounds from the total initiative are still available for companies to utilize. He further added that the new initiative extends for five years with a 15% return, and it requires the factory to be ready to operate the new equipment. He also noted that discussions are underway to include working capital financing within the initiative in the near future. El Shafei affirmed that investment incentives include a discount of up to 50% of the investment cost for projects located in areas most in need of development, and a 30% discount for projects in other areas. Additionally, there are cash incentives, such as recovering a portion of income tax after payment, which enhances the attractiveness of industrial investment, especially for projects involving foreign partners.