Dedosia, as the Pharaohs called it, or Al Mahallah Al Kobra as it is known today, has been the capital of the textile industry from ancient Egypt to the present day. Dedosia in hieroglyphics means linen, which was the most important fabric of that time. Consequently, Al Mahallah has long represented the textile hub of all post-Pharaonic states, including Coptic, Roman, and Islamic Egypt.
Today, Al Mahallah is the largest city in the Al Gharbiya Governorate, though it is not its capital. With a population of just over two million, it is the largest city in the Nile Delta.
Spanning an area of 25,000 square kilometres, Al Mahallah is relatively smaller than some other Egyptian cities but remains one of the country’s most significant industrial centres.
In addition to other industrial and commercial activities, more than 80 per cent of the population is employed in the textile sector. The city is particularly renowned for being home to the world’s third-largest factory, Misr for Weaving and Textile.
The city boasts 471 textile factories, alongside numerous others involved in complementary industries such as cotton ginning and weaving. Cotton ginning factories alone occupy 50 hectares of the city’s area. Among the most prominent companies, some of which are listed on the Egyptian Stock Exchange, are Nile, Misr, Cairo, and Delta.
Weaving has been the city’s hallmark activity since Pharaonic times, when linen was the most sought-after fabric. Today, cotton weaving dominates, bolstered by the global reputation of Egyptian cotton.
Misr for Weaving and Textile, established in 1927 by Talaat Harb—the father of modern Egyptian economy and founder of Misr Banque—comprises 20 massive factories: six for weaving, ten for textiles, and four for garment manufacturing.
The company employs 24,000 workers and alone consumes 25 per cent of Egypt’s total cotton production, amounting to 100,000 tons of raw cotton annually.
Former Egyptian President Anwar Al Sadat (1970–1980) once said, ‘Al Mahallah totally embodies the struggle of Egyptians in the village and the factory, which means the struggle of farmers and workers, and in turn, the leading powers in the unity of the working people.’
This industry in Egypt, led by Al Mahallah, is critically important to the Egyptian economy, contributing approximately 25 per cent of the country’s total exports. The sector employs 950,000 workers, accounting for nearly 30 per cent of the national labour force.
Ownership of textile factories spans public and private entities—whether local or foreign—as well as family and individual investors, with operations spread across 4,000 companies. These investments are estimated to be worth USD 10.3 billion.
Al Mahallah and the wider textile sector faced significant challenges in the early 1990s following the collapse of the Soviet Union and Eastern European economies, which had been the primary buyers of Egyptian production. However, a wave of privatisation and modernisation under structural adjustment reforms transformed the industry, marking its entry into a free-market economy and opening it to international competition.
The Egyptian government has engaged in extensive negotiations and agreements with the European Union, the United States, and other international actors to secure support for a gradual transition to openness without causing sudden economic shocks, which posed another challenge.
As an example of this development, Egyptian Terry Towels Co., a family business established in 1948 in Al Mahallah, has grown from a small textile factory into a specialist producer of plain towels and single yarn.
The company’s CEO, Mr. Mohsen Al Kady, stated: ‘Since 1948, our business has faced many challenges and pursued various expansion plans. However, the early 2000s marked our golden age when demand from Western countries peaked.’
Regarding distribution, Al Kady noted that 80 per cent of the company’s production is exported, with the US, UK, Germany, and Cyprus as the primary destinations.
Although the company’s exports have decreased by 40 per cent this year, which Al Kady attributes to the recent global economic crisis, he remains optimistic, describing it as a short-term issue in light of the Egyptian economy’s overall strong performance.
It is an undeniable reality that the global recession has hurt Western buyers the most. However, some investors in Al Mahallah have benefited from the global shift towards more affordable production in countries like Egypt, which offers acceptable quality standards.
Mr. Mohamed Ezzat, general manager of El Sehely Tex, a company established in 1956, remarked, ‘Currently, 100 per cent of our production is dedicated to exports.’ The company specialises in producing plain peach skin textiles.
Ezzat added: ‘All of our production is exported to Germany, Italy, Spain, the UK, and France. We also collaborate with the Egyptian Textile Export Council, which facilitates many of our promotional activities. We will soon participate in the Inn Textile Fair in Germany, as advised by the German Arab Chamber of Commerce.’
El Sehely Tex recently decided to establish a dyeing factory as part of an ambitious expansion plan following five years of growth.
In summary, the textile industry in Al Mahallah remains a historical pillar of the Egyptian economy, having undergone significant phases of development, particularly in the past two decades. The challenges of transitioning to a free-market economy and the recent global economic crisis have undoubtedly tested local investors.
Despite these hurdles, Al Mahallah’s textile industry continues to show promise, offering opportunities to investors who can successfully navigate external markets. This potential drives the Egyptian government’s efforts to remove sectoral obstacles and attract foreign direct investment to pave the way for future growth.
Another version of this article is published by the German Arab Trade magazine.