Suez Canal Strikes $2 Billion Deal with Anchorage to Build Petrochemical Complex in Sokhna

The Suez Canal Authority (SCA) has signed a major investment agreement with Anchorage Investments to establish a large-scale petrochemical complex in Ain Sokhna, on Egypt’s Red Sea coast, with initial investments exceeding $2 billion.

Announced on Wednesday, the project will be developed on a land parcel owned by the authority, marking one of the largest industrial partnerships in the region’s recent history. The facility will primarily produce polypropylene (PP) from propane feedstock in its first phase, while also generating hydrogen as a secondary product.

Speaking at the signing ceremony, Ahmed Moharram, Founder and Managing Director of Anchorage Investments, said the second phase of the complex would expand into additional petrochemical products and include complementary industrial units focused on exports and sustainability. The projected investment for this expansion is estimated at $4.5 billion.

“This partnership represents a new chapter for Egyptian industrial growth, aligning with national goals to increase high-value exports and reduce import dependency,” Moharram said.

According to a statement from the SCA, the project is expected to create over 2,500 direct and indirect jobs once construction is complete and operations begin. Specialized technical and administrative training programs will also be implemented, particularly in the fields of occupational health and safety, to enhance local workforce capabilities.

The agreement underscores Egypt’s strategy to diversify the economic role of the Suez Canal Zone, transforming it from a global shipping corridor into a regional hub for energy-intensive industries, exports, and green development.

The project is set against the backdrop of growing global interest in hydrogen production and the strategic importance of the Red Sea and Suez corridor in global supply chains.