According to MP Enas Abdel Halim, the recession and declining economic conditions have resulted in Egypt closing its textile factories by 30%. The rest of the mills have cut production by between 50 and 70% in the Middle East Monitor.
Egypt had around 1,260 factories registered in Mahalla for spinning, weaving and dyeing; now, only 320 factories with 120,000 employees are in operation. In calling on the Minister of Trade and Industry, Nevin Jame, to be questioned in parliament over the recent decline of the textile sector, the Halim warned the government against neglecting the matter. The Egyptian unemployment rate in the second quarter of 2020 increased to 9.6% compared to 7.5% a year ago due to the coronavirus pandemic, according to the CAPMAS Statistics Department, in August.