Feasibility and entry model — Invest in Egypt — Egytex | Egypt's Official Textile Industry Portal

In short

There are four ways in: build a new factory, buy or lease an existing one, form a joint venture with an Egyptian manufacturer, or start with contract manufacturing and build later.
Egypt's Investment Law No. 72 of 2017 sets out the regimes: inland investment, investment and technological zones, and free zones. The Suez Canal Economic Zone (SCZone) has its own law and authority.
Exporters to the US should look at the six Qualifying Industrial Zones (QIZ); large export-led or labour-intensive projects can apply for a single "Golden License".

Compare the investment regimes side by side →

What this stage involves

Choosing your entry route

Route	Best when	Watch out for
New factory (greenfield)	You need your own layout, scale and compliance from day one	Longest route: land, permits and construction (Stages 5–7)
Buy or lease an existing factory	You want to start producing quickly	The building, machines and permits must suit your product; check debts and labour obligations
Joint venture with an Egyptian manufacturer	You want local know-how, customers and a running workforce	Agree control, quality, exit terms and who owns the buyer relationships
Contract manufacturing first	You want to test Egyptian quality and costs with little capital	You do not control the factory; plan how you would move to your own

The Egytex Directory lists Egyptian manufacturers by product and region — a starting point for joint-venture partners and contract manufacturers.

Choosing your investment regime

Regime	Who it suits	Main features	Managed by
Inland investment	Projects selling in Egypt as well as exporting	General incentives under Law 72/2017, including a unified 2% customs duty on machinery and equipment; special incentives for priority sectors and regions	GAFI and the investor service centres
Public or private free zone	Export-focused production	Imported machinery and inputs, and exports, free of customs duties and taxes; projects pay a fee on the value of their goods; sales into Egypt pay duties on the imported content	GAFI
SCZone	Larger projects near the Suez Canal ports	Its own law (No. 83 of 2002) and one-stop shop; zero customs on materials and tools for construction and operation; land on usufruct up to 50 years; 100% foreign ownership; Qantara West is being developed for textiles and garments	General Authority for the Suez Canal Economic Zone
QIZ location	Exporters targeting the US	Duty-free US entry for goods made in a QIZ that meet the content rules: 35% of value, of which 11.7% Egyptian and 10.5% Israeli input	Ministry of Investment and Foreign Trade (QIZ Unit)

Rules that apply across regimes. Under Law 72/2017, foreign staff may make up to 10% of the workforce, rising to 20% where qualified Egyptians cannot be found. The standard corporate tax rate is 22.5%; SCZone projects get a 50% reduction for their first seven years.

The Golden License. Under Article 20 of the Investment Law, the Council of Ministers can grant one approval that covers setting up, operating and managing the project, building licences and land. According to GAFI's guide, industrial projects qualify, among them projects that export at least 50% of their output, are financed with foreign money brought from abroad, or are labour-intensive. GAFI's guide says each licence is granted within 20 business days.

QIZ today. In February 2026 Egypt said it had won a preliminary agreement to start reducing the Israeli-content share in phases, toward 5–8%. QIZ exports reached US$1.33 billion in 2025. Confirm the current content rule before planning around it.

Your checklist

Tick as you go

0 / 7 done

Who you deal with

Organisation	What they help with	Official site
General Authority for Investment and Free Zones (GAFI)	Inland investment, investment zones, free zones, the Golden License	gafi.gov.eg
Golden License portal	Applying for a single approval	goldenlicense.gov.eg
General Authority for the Suez Canal Economic Zone	SCZone land, licensing and one-stop shop	sczone.eg
QIZ Unit, Ministry of Investment and Foreign Trade	QIZ registration and content rules	qizegypt.gov.eg

How long it takes

Typical, not guaranteed

Typically 4–8 weeks of analysis and advice, depending on how many options you compare. (Egytex estimate.) A Golden License application, if you go that way, is a separate step: GAFI's guide sets 20 business days for the decision.

Common questions

Can a foreign company own 100% of an Egyptian factory?

In SCZone, yes — there are no foreign-ownership restrictions. Elsewhere, confirm the rules for your activity and legal form with GAFI or your lawyer during Stage 4.

Can a free-zone factory sell in Egypt?

Yes, but goods entering the Egyptian market pay customs duties on their imported content.

Is QIZ still worth it with the 2026 US tariffs?

It depends on your product. How the 2026 US tariffs apply to QIZ goods had not been confirmed when this guide was written — check before you decide.

Sources & review

This guide was last reviewed by the Egytex team on 6 Oct 2026. Laws, incentives and costs change — confirm current terms with the authority concerned before you commit.