Egypt's Cabinet Greenlights $12 Million Leather and Footwear Manufacturing Project

Egypt's Cabinet, chaired by Prime Minister Mostafa Madbouly during its meeting on, August 20, 2026, approved the establishment of a new leather and footwear manufacturing company as part of a broader package of investment and industrial decisions.

A New Player in Egypt's Leather City

The Cabinet approved the establishment of Sky Nova for Leather Manufacturing, Trading and Tanning S.A.E., which will operate under Egypt's private free zone system. The $12 million project will be built on a 30,000 square meter site within the Leather City in Robiki, Badr City, Cairo Governorate, an industrial hub dedicated to leather processing and manufacturing.

The company will produce leather goods and footwear, bringing together international expertise in tanning and shoe manufacturing with what officials describe as Egypt's competitive industrial environment. The move is designed to reinforce Egypt's ambitions of becoming a regional manufacturing and export hub, while also driving industrial diversification, technology transfer and workforce development.

Jobs, Local Content and Production Targets

Operations at the new facility are scheduled to begin on September 1, 2027. Once running, the project is expected to employ around 1,000 workers, including roughly 900 Egyptians in specialized roles. The company has set a target local component ratio of 45%, meaning nearly half of the materials and inputs used in production are intended to come from domestic sources. Annual output is projected at approximately 2.5 million pairs of shoes.

Export Ambitions

Exports are a central part of the project's strategy. Sky Nova is projected to generate around $148.4 million in exports between the fourth quarter of 2027 and 2032, positioning the venture as a meaningful contributor to Egypt's non-oil export sector and its broader push to expand manufacturing-driven trade.

Why It Matters

The approval reflects Egypt's ongoing effort to attract foreign and private investment into industrial free zones, particularly in sectors like leather and footwear where the country already has an established manufacturing base at Robiki's Leather City. By combining international expertise with local labor and materials, the government is betting that projects like Sky Nova can help diversify the economy, create jobs, and strengthen Egypt's footprint in global leather and footwear export markets