The Egyptian firm placed orders for pants dyed by Kitan under the Qualified Industrial Zone (QIZ) agreement between Israel, Egypt and the United States, which allows Egyptian companies in certain areas to export products containing a quota of Israeli components to the United States free of customs duties.Signed in December 2004, the agreement set a 12 percent quota of Israeli components for Egyptian companies included in the QIZ in Sinai. The areas were recently expanded to include parts of Greater Cairo, Alexandria and Port Said The Ministry of Trade, Industry and Labor reported that over 400 Egyptian companies have joined the QIZ initiative. The union of industrialists reported a 134 percent increase in Israeli exports to Egypt since QIZ was signed Kitan develops, manufactures and markets textile products around the world. Owned by a consortium of industrialists, the company employs 500 workers in two factories in Dimona and Upper Nazareth.