Egypt Denies Transferring Ownership of Ain Sokhna Land to Qatari Company

The Egyptian government has firmly denied circulating claims that it transferred ownership of land in the Ain Sokhna area to a Qatari company without securing financial or investment returns for the state, calling the reports “completely unfounded.”

In an official statement issued through its verified platforms, the Media Center of Egypt’s Cabinet rejected allegations that land within the Suez Canal Economic Zone (SCZONE) had been handed over to Qatar-based Al Manaa Holding.

 The statement cited the General Authority for the Suez Canal Economic Zone, which stressed that all land and industrial areas within the zone remain fully owned by the Egyptian state and under its complete sovereignty.

“There has been no waiver or transfer of ownership of any part of the economic zone’s land to any entity,” the statement said.

According to the government, the land allocated for Al Manaa Holding’s project, focused on producing sustainable aviation fuel (SAF), was granted under a right-of-usufruct arrangement, a standard framework applied to all investment contracts within the SCZONE. This system allows investors to use land for a specified period without transferring ownership, ensuring state control is preserved.

The Cabinet Media Center also addressed claims regarding a $200 million figure linked to the project, clarifying that the amount represents the total investment cost, not a payment for land usage rights.

Officials emphasized that the project is expected to generate both direct and indirect economic benefits for Egypt. Direct revenues include usufruct fees, port handling charges at Ain Sokhna Port, and various administrative fees. 

Indirect gains are projected through construction activity, engagement of Egyptian companies, procurement of local raw materials, and the creation of thousands of direct job opportunities for Egyptian workers.

The statement further underlined that any tax or customs exemptions granted to investors fall strictly within the framework of the SCZONE law, which governs special economic zones. “Taxes are imposed or exempted only by law, in a general and impartial manner, and not for the benefit of a specific investor,” the government noted.

The Cabinet Media Center also clarified that the agreement between Al Manaa Holding and Shell to off-take the project’s entire production was signed prior to the construction contract. The deal was based on comprehensive financial and market studies aimed at securing long-term product demand and ensuring sustainable investment returns.

The selection of the Suez Canal Economic Zone as the project’s location was attributed to its unique integration of industrial areas and seaports, which reduces logistics costs and brings production sites closer to target markets, enhancing overall competitiveness.

Ain Sokhna Port, the statement added, has gained renewed strategic importance following recent upgrades. Recognized by Guinness World Records as the deepest man-made port basin, the port serves as a key gateway to the Red Sea, a critical transit route for Africa and global trade, and is now fully equipped to accommodate vessels of all sizes.

The government concluded by warning against the spread of misinformation surrounding national investment projects, reiterating its commitment to transparency while safeguarding state assets.