Egypt’s plastics sector achieves 16% growth as exports, investment surge

EGYPT – Egypt’s plastics industry has posted an exceptional 16% growth rate in recent months, reflecting its expanding contribution to industrial output, exports, and foreign currency inflows, according to Khaled Abou El-Makarem, Head of the Export Council for Chemicals and Fertilizers.

Speaking at the opening of the 20th Plastics and EGYPlast exhibitions on 9 January 2026, he emphasized that plastics remain one of Egypt’s fastest-growing industrial segments, driven by strong domestic demand, rising global orders, and a favorable investment climate.

Plastic product exports have reached approximately US$2.4 billion, while total exports from the chemicals and fertilizers sector, under which plastics fall, hit US$9.5 billion.

Abou El-Makarem noted that this momentum is essential to Egypt’s broader plan to boost national exports to US$145 billion in the coming years.

He added that sustained growth in plastics will be critical to achieving this target, given the sector’s extensive linkages with packaging, construction, automotive, consumer goods, and agricultural industries.

Egypt’s plastics industry benefits from competitive production costs, strategic access to global shipping routes, and an expanding network of trade agreements, which collectively enhance export positioning across Africa, the Middle East and Europe.

Rising foreign direct investment, particularly from Gulf, European and Asian manufacturers, signals growing confidence in Egypt as a regional industrial hub for polymer processing, masterbatch production, and value-added plastic packaging.

Industry analysts note a surge in investment in modern extrusion, injection moulding and blow-moulding technologies as local manufacturers seek to increase productivity, reduce energy consumption and enhance product quality.

Several companies are expanding their capacity for flexible packaging, PET preforms, and recyclable plastics to capture new market segments and meet sustainability-driven requirements.

The government’s industrial strategy, supported by incentives for expansion, infrastructure upgrades, and reforms in customs and licensing, has further contributed to sector growth.

Increased availability of local raw materials from petrochemical investments in Alexandria and the Suez Canal Economic Zone has also strengthened supply stability.

Across the Middle East and North Africa, demand for plastic packaging and components continues to rise, driven by e-commerce, food processing growth, and manufacturing diversification.

Saudi Arabia and the UAE are investing heavily in advanced polymer production and recycling systems, while North African markets such as Morocco and Tunisia are expanding exports of injection-moulded products and packaging films.

As global supply chains shift and regional markets seek resilient manufacturing bases, Egypt’s plastics industry appears positioned for continued expansion, supported by rising exports, technology integration, and growing investor confidence.

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