Supply chain uncertainties and rising costs are driving Turkish companies to take a closer look at its neighbor, Egypt.

This marks the first visit by an Egyptian head of state to Turkey in 12 years, following a decade of tensions between the two countries. The meeting was expected to formalize their reconciliation.

That is how Cemil Kolunsag, a board member of Istanbul-based Cross Textiles, the parent company of CRS Denim Egypt, describes Turkey and Egypt—an increasingly powerful sourcing and manufacturing ...