Egypt Secures $200 Million Qatari Investment to Produce Sustainable Aviation Fuel in Suez Canal Economic Zone
Egypt has signed a landmark investment agreement with Qatar’s Al Mana Holding to establish a sustainable aviation fuel (SAF) production facility in the Suez Canal Economic Zone (SCZone), marking a significant step in the country’s push toward green energy and foreign investment attraction.
The contract, announced by the Egyptian cabinet on Sunday, commits an initial $200 million for the first phase of the project, which will convert used cooking oil into sustainable aviation fuel. The facility will be located in Ain Sokhna, within the Integrated Sokhna Zone along Egypt’s Red Sea coast.
According to details reported by Reuters, the project will be implemented in three phases and span approximately 100,000 square metres. The first phase alone is expected to deliver an annual production capacity of 200,000 tonnes of sustainable aviation fuel, positioning Egypt as an emerging regional hub for SAF manufacturing.
The agreement represents a historic milestone as it constitutes the first Qatari industrial investment in the Suez Canal Economic Zone. It aligns with Egypt’s broader strategy to attract high-value foreign direct investment, particularly from Gulf partners, as the government works to ease mounting foreign debt pressures and narrow a widening budget deficit.
Prime Minister Mostafa Madbouly described the project as a clear indication of the positive trajectory in relations between Cairo and Doha. He подчеркed that the agreement reflects a shared political commitment by both governments to deepen bilateral cooperation through joint investments, industrial partnerships, and expanded trade ties.
Strengthening Cairo–Doha Economic Relations
The SAF project follows another major Qatari investment announcement made last month, when Qatar’s sovereign wealth fund unveiled plans for a $29.7 billion luxury real estate and tourism development on Egypt’s Mediterranean coast. That deal stands as the largest Qatari investment in Egypt to date.
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Together, the two agreements underscore the rapid deepening of economic ties between Egypt and Qatar following the restoration of diplomatic relations after a 2017–2021 regional rift, during which Egypt, Saudi Arabia, the United Arab Emirates, and Bahrain cut ties with Doha over allegations of supporting terrorism and maintaining close relations with Iran, claims Qatar has consistently denied.
With this latest investment, Egypt not only strengthens its economic partnership with Qatar but also advances its ambitions in sustainable fuel production, renewable energy development, and industrial growth within the strategically vital Suez Canal Economic Zone.
