With respect to Egypt, the report considers the textile industry of paramount importance to the economy, accounting for 5 percent of total GDP and 26.4 percent of industrial production. It employs more than half a million Egyptians and is a crucial foreign exchange earner. In spite of its superior raw materials, Egypt has been unable to exploit its advantageous position to the best of its capabilities. Egypt needs to direct more investments into weaving and dyeing of local fabrics instead of exporting the raw material, thereby limiting its comparative advantage in the textiles industry. Clearly, there is a need to create a niche market because competition with other countries such as China and Pakistan is difficult due to the huge differences in input and output costs.