Egypt has signed a $200 million agreement with Qatar’s Al Mana Holding to produce sustainable aviation fuel at Ain Sokhna. The project will be located in the Suez Canal Economic Zone, a strategic hub on Egypt’s Red Sea coast.
According to Egypt’s cabinet, the fuel will be produced from used cooking oil, highlighting a shift toward cleaner energy solutions. Development will unfold in three phases across 100,000 square metres within the Integrated Sokhna industrial zone.
The first phase alone is expected to generate 200,000 tonnes of sustainable aviation fuel annually, officials said. The agreement marks the first Qatari industrial investment in the Suez Canal Economic Zone, signalling deepening economic ties.
Egypt has increasingly courted Gulf investment as it struggles with mounting foreign debt and a widening budget deficit. Prime Minister Mostafa Madbouly said the project reflects renewed momentum in relations between Cairo and Doha.
He added that shared political will is driving cooperation through joint investments and expanding bilateral trade. The deal follows Qatar’s announcement last month of a $29.7 billion tourism and real estate investment in Egypt.
That investment was the largest since diplomatic ties were restored after a regional rift from 2017 to 2021. Together, the projects suggest a thawed relationship now anchored in commerce, energy ambition and regional recalibration.