This is mainly due to the distinguished properties that are attributed to products manufactured from low count Egyptian cotton yarn in particularly terry towels which are easily recognized by the end consumer such as the softness on the skin and ability to absorb more water.
The liberalization of the Egyptian cotton trade in 1994 has played a crucial role in effecting the competitiveness of the Egyptian spinning industry, and in particularly the Public spinning factories that are burdened with huge debts and over employment.
Meanwhile, the Private sector investment has increased its share in the Egyptian spinning industry from 10% in 1996 to 50% in 2005 but most of the private sector investment was injected in the privatization of Public sector factories that have already existed, and their has not been any major new investment in the Egyptian spinning sector in the last 20 years.
This has affected the competitiveness of the Egyptian spinning industry to its competitors in India and China, since there have been considerable investments by Indian and Chinese spinners in the last 4 years, and they have become the major consumers of Egyptian cotton and Pima cotton.
Further, the private investment spinning companies currently are the biggest exporters of Egyptian cotton yarn with the exception of Misr Spinning and Weaving in Mehalla El Kobra which is considered Egypt's flagship in primary textiles.