Egypt and Qatar have signed a landmark agreement to develop the first sustainable aviation fuel (SAF) production project in the Suez Canal Economic Zone, marking a major step toward advancing clean energy and low-carbon aviation in the region.
The agreement was signed by Egyptian Prime Minister Mostafa Madbouly and Qatar’s Al Manaa Holding for a joint venture to be established in the Ain Sokhna Integrated Zone, signaling what officials described as the beginning of a new era for sustainable energy industries in Egypt.
The project will be developed over an area of 100,000 square meters with total investments of $200 million. It is designed to produce 200,000 tons annually of sustainable aviation fuel, in addition to biopropylene and bionaphtha.
According to project estimates, the facility is expected to reduce harmful carbon emissions by 50% to 80% compared with conventional jet fuel, aligning with global aviation decarbonization targets.
The site will be divided between 70,000 square meters in the industrial zone and 30,000 square meters at Ain Sokhna Port, providing integrated industrial and logistics capabilities to support production and export operations.
Prime Minister Madbouly said the signing of the agreement, which coincided with the Egyptian-Qatari Business Forum in Cairo, reflects the positive momentum in bilateral relations between the two countries.
He emphasized that the project demonstrates the shared political will of both leaderships to deepen economic cooperation and translate diplomatic progress into tangible investments that expand joint ventures and boost trade volumes.
The project will include a long-term strategic partnership with Shell, which will be responsible for off-taking the entire production by the end of 2027. This arrangement ensures rapid access to international markets and underscores the project’s position within the global renewable
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