Fountain Set Limited plans $100M expansion into Egypt’s textile industry

CAIRO – 9 December 2025: Fountain Set Limited, a prominent Chinese fabric manufacturing company, is set to expand its operations into the Egyptian market by establishing a new spinning and weaving factory with a projected investment of approximately $100 million.

During a meeting with Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), the company outlined plans to develop an industrial project on a 200,000-square-meter plot of land, either within a free zone or a special economic zone framework.

The company aims for the new facility to become a key hub for fabric manufacturing in Egypt, with a strong focus on exporting to European and African markets.

Heiba underscored Egypt's readiness to welcome new investments, highlighting that over $4 billion has been invested into modernizing state-owned factories, including the importation of the latest European technology.

Furthermore, Heiba noted that Egypt offers a range of flexible partnership models for foreign investors, including options for ownership, leasing, and usufruct rights, allowing investors to select the system that best suits their project’s needs.

In this context, Heiba also discussed the differences between Egypt’s free zone and special economic zone systems, including the Suez Canal area, and emphasized that these diverse options aim to provide the most beneficial framework for investors, ensuring they can capitalize on government incentives.

Heiba stressed that Egypt’s strategic location, favorable free trade agreements, and competitive labor market make it an attractive destination for export-focused textile industries.

He also pointed out the potential of El Mahalla El Kubra’s textile companies, which boast advanced production capabilities and a robust industrial infrastructure. These existing capacities present an opportunity to further integrate the industry, supporting the expansion of the textile sector by leveraging local expertise and equipment.

The chairman of GAFI concluded by emphasizing that the textile industry is a priority in Egypt’s current investment strategy. With a focus on boosting exports, deepening industrial capabilities, and creating more job opportunities, the government is committed to attracting significant investments in the sector to strengthen national production capacity.