Egypt has signed a first‑phase $200 million agreement with Qatar’s Al Mana Holding to produce sustainable aviation fuel (SAF) using recycled cooking oil in the Suez Canal Economic Zone at Ain Sokhna. The announcement, confirmed by Egypt’s cabinet, marks the first Qatari industrial investment inside the zone and reflects growing economic cooperation between Cairo and Doha.
According to the government statement, the SAF facility will span 100,000 square metres within the Integrated Sokhna Zone on the Red Sea coast and will be developed in three phases. The first phase will produce an estimated 200,000 tonnes of sustainable aviation fuel annually, placing Egypt among a growing group of countries investing in cleaner energy for global aviation.
The deal comes as Egypt continues its push for large‑scale foreign investment to help manage heavy external debts and a widening budget deficit. Gulf states, including Qatar, have become key partners in this strategy.
Prime Minister Mostafa Madbouly said the agreement reflects “positive momentum” in relations between the two countries, citing shared political will to deepen joint investment and trade after years of turbulent ties. Diplomatic relations were restored in 2021 following the end of the 2017–2021 regional rift.
The new SAF project follows Qatar’s recent announcement of a $29.7 billion luxury real estate and tourism investment on Egypt’s Mediterranean coast, the largest Qatari commitment in Egypt since relations normalised.
Regional Significance and Energy Context
The move aligns with broader global trends as nations race to create cleaner aviation fuels capable of easing pressure on climate commitments. The Suez Canal Economic Zone has positioned itself as a manufacturing and logistics hub for renewable energy, green hydrogen, and industrial projects with export potential.
The project also arrives at a time when energy markets are shifting rapidly. Gulf investors have increased strategic acquisitions across Africa and the Mediterranean to secure long‑term economic influence and diversify beyond oil.
Africa’s partnerships in energy and technology are becoming more strategic, and Egypt’s deal demonstrates how nations on the continent are positioning themselves inside a changing global economy. Africa is young, still building, and cannot be compared to economies with centuries of head starts. What matters is momentum, and deals like this show that African countries are not waiting for permission to enter industries of the future. With the right investment climate, youth talent, and cross‑regional cooperation, the continent’s emerging markets can shape cleaner aviation, sustainable industries, and new economic pathways that reflect Africa’s long‑term potential.
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