Kafr El-Dawar is an important industrial city in the northern Nile Delta. The majority of its population is employed in the textile industry, which is the largest economic activity in the city. The Egyptian Company for Spinning and Weaving is the largest industrial firm in Kafr El-Dawar and is ranked second in Egypt after the same company’s spinning and weaving factory in Mahalla Kubra. There are four other major commercial enterprises in the city, engaged in the production of chemicals, dyes and paints, silk fibers, and the canning and packing of fruit.