This paper provides an ex-post assessment of the impact of Egypt's qualifying industrial zones (QIZ) protocol on the textile and clothing industry in Egypt, and offers recommendations to maximize benefits to the sector. Drawing on the results of a survey conducted for the purpose of this study and interviews with QIZ companies, the paper finds that the protocol has achieved its short-term objectives such as preventing deterioration of Egypt's share in the US market following the end of the international system of quotas. The protocol has also led to increased employment and investment opportunities in many exporting companies. To maximize benefits from the protocol, the study stresses the importance of promoting investment and improving the competitiveness of domestic companies. It also highlights the need to support the development of subcontracting linkages between large and smaller companies and to establish long-term partnerships between local and foreign investors.