Egypt and Qatar have just concluded a $200 million investment agreement to develop a sustainable aviation fuel project using used cooking oil in the Suez Canal Economic Zone at Ain Sokhna. This initiative is part of Egypt’s strategy to become a regional hub for green fuels while strengthening its economic ties with the Gulf.

A 200 Million USD Agreement

According to the Egyptian government, a contract has been signed with the Qatari conglomerate Al Mana Holding for an initial investment of $200 million dedicated to the production of sustainable aviation fuel (SAF) at Ain Sokhna, on the Red Sea. This is the first phase of an industrial project that will be rolled out in three stages across a total area of 100,000 m² within the Suez Canal Economic Zone.

A flagship project in Ain Sokhna

The plant will be located in the Sokhna Integrated Zone, with some of the facilities directly connected to the port to facilitate exports. Ultimately, the site will include a 70,000 m² industrial zone and a 30,000 m² port area, making it one of the region’s leading hubs for sustainable fuels.

Green fuel from used cooking oil

The project aims to produce sustainable aviation fuel from used cooking oil, following a circular economy model and promoting waste recovery. The first phase is announced with an annual capacity of approximately 200,000 tons, including SAF (Suez Fuzzy Air), but also co-products such as bio-propane and bio-nafta derived from the refining of these oils.

Egypt positions itself in SAF

This partnership with Al Mana Holding comes as Egypt is multiplying its initiatives to develop a local SAF industry, notably through a first sustainable aviation fuel project in Alexandria led by the Egyptian Sustainable Aviation Fuel Company and using Honeywell UOP technology. The country hopes to thus comply with new international regulations that mandate a gradual increase in the share of sustainable fuels in aviation, while also addressing its CO₂ emissions.

A lever for Egypt-Qatar relations

For Cairo, this investment marks the first Qatari industrial presence in the Suez Canal Economic Zone and symbolizes a new dynamism in the bilateral relationship following the diplomatic reconciliation of the 2017-2021 period. The project comes on top of other major announcements, including a vast Qatari program of nearly $30 billion in real estate and tourism on the Egyptian Mediterranean coast, confirming the strong return of Gulf capital to the country’s economy.