CAIRO, Dec 15 – Egypt has signed a contract with Qatar’s Al Mana Holding for a first-phase investment of $200 million to produce sustainable aviation fuel from used cooking oil in the Suez Canal Economic Zone at Ain Sokhna, the Egyptian cabinet said on Sunday.
The project will be developed across three phases and will cover 100,000 square metres in the Integrated Sokhna Zone on Egypt’s Red Sea coast. The first phase is expected to have an annual production capacity of 200,000 tonnes, according to the cabinet statement.
The agreement marks the first Qatari industrial investment in the Suez Canal Economic Zone, underscoring growing economic cooperation between Cairo and Doha. Egypt has been actively seeking foreign investment, particularly from Gulf states, as it works to manage heavy external debt obligations and narrow its budget deficit.
Prime Minister Mostafa Madbouly said the project reflects strengthening bilateral ties.
“This project reflects the positive momentum in relations between Cairo and Doha, driven by the shared political will to advance bilateral cooperation through joint investments and increased trade,” he said.
The deal follows a series of large-scale Qatari investments in Egypt. Last month, the real estate arm of Qatar’s sovereign wealth fund announced plans to invest $29.7 billion in a luxury real estate and tourism development on Egypt’s Mediterranean coast.
That investment marked the largest Qatari commitment to Egypt since diplomatic relations were restored after a regional rift between 2017 and 2021, when Egypt, Saudi Arabia, the United Arab Emirates and Bahrain severed ties with Qatar over political disputes that Doha denied.
The sustainable aviation fuel project aligns with Egypt’s broader strategy to position itself as a regional hub for green fuels and low-carbon industrial production, leveraging its strategic location, logistics infrastructure and growing demand for cleaner energy solutions.
