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Key Players in the Industry - Term Paper Example

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This paper demonstrates how the Egyptian market is attractive to start an apparel business and also Why Egypt economy is facing economic hardships and political instability and what factors can impact on the development of the company…
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Key Players in the Industry
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Download file to see previous pages The textile industry of Egypt is considered as one of the oldest industries in the work and dates back to around 500 BC and today comprised of 3000 public and private companies (SEAM Project). In the 19th century, under the rule of Muhammad Ali, Egyptian made efforts to industrialize the economy and machines and technology was imported from abroad, however, by the First World War, the textile industry of Egypt had achieved a strong foothold (Kjeilen). The textile industry covers various textile segments such as spinning, weaving, knitting, converting and garment manufacturing (Infomat). Egypt has faced improvements in its investment because of various reasons including the new tax law, decree of customs tariffs and launch of Great Free Arab Trade Zone. Moreover, the law of investment No. 13 released in 2005 has been issued to develop unified services center to improve the procedures of investment and Public Association of Industrial Development has been established to develop the industrial policies and to improve the industrial area so that industrial investment could be attracted (Egypt State Information Service). The major textile producing countries which offer first class facilities and easy access include Iran, Bangladesh, Pakistan, India, and Egypt (Stensgaard, 2005).   
The efforts which have been made to improve the investment climate in Egypt especially in the high growth industry like textile have actually proven fruitful. Today, Egypt textile industry attracts the U.S. $8 billion through foreign direct investments and contributes to 16.3 percent in Gross National Product. Moreover, textile exports of Egypt make 24.5 percent of the total turnover of Egypt and around 4,491 companies operating in Egypt textile industry are providing 30 percent employment opportunities in the country (Furnex Egypt, 2010).
Industry experts are of the view that textile industry of Egypt has the potential to have a bright future, however; there is a need to deliver more attention towards the industry from both the businessmen and the government. ...Download file to see next pagesRead More
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