Riyadh: Egypt has entered into a $200 million agreement with Qatar-based Al Mana Holding to set up a sustainable aviation fuel plant in the Suez Canal Economic Zone, marking the first industrial investment by a Qatari company in the zone, reports Arab News.
The project will be developed in the Ain Sokhna Integrated Zone on a site spanning about 100,000 square metres. According to a statement shared by the Egyptian Cabinet Presidency, the plant will have an annual production capacity of 200,000 tonnes.
The facility will manufacture sustainable aviation fuel along with by-products such as biopropane and bionaphtha. Production will be based on refined used cooking oil, supporting cleaner fuel alternatives for the aviation sector.
Al Mana Holding has signed a long-term agreement with Shell to supply the entire output of the plant. Deliveries of sustainable aviation fuel are expected to begin by the end of 2027.
The project is in line with Egypt’s national strategy to support the aviation industry while meeting environmental sustainability goals, as global demand for cleaner aviation fuels continues to grow.
Prime Minister Mostafa Madbouly said the project would strengthen the economic zone’s ability to keep pace with the global shift toward renewable energy, particularly in aviation. He said the agreement, signed during the Egyptian-Qatari Business Forum in Cairo, reflects improving relations between the two countries and a shared intention to expand cooperation through investment and trade.
Waleid Gamal El-Dein, chairman of the Suez Canal Economic Zone, said environmental responsibility is a central part of the zone’s development strategy. He said the project is expected to cut harmful emissions by 50 to 80 percent compared to traditional aviation fuel.
He added that the long-term supply arrangement with Shell would support exports from the zone and contribute to Egypt’s broader efforts to boost exports and limit imports.
Gamal El-Dein said 457 companies have now been established in the Suez Canal Economic Zone, including 296 formed since the 2022–2023 financial year. These companies represent issued capital of about $785 million from investors from several countries.
Abdulaziz Al-Mana, chief executive officer of Al Mana Holding and chairman of Green Sky Capital, said the company was pleased to work with the Suez Canal Economic Zone and highlighted Egypt’s supportive investment climate and the government’s role in easing project execution.
