Egypt, Qatar ink $200M deal to launch SAF project in SCZONE
Updated 12/15/2025 8:13:00 AMArab Finance: Egypt signed a contract with the Qatari group Al Mana Holding to produce sustainable aviation fuel (SAF) in the integrated Ain Sokhna zone, part of the General Authority for the Suez Canal Economic Zone (SCZONE), according to a statement.
Both sides also agreed to establish SAF Fly Limited, a company specializing in the production of sustainable aviation fuel.
With an investment cost of $200 million (EGP 9.6 billion), the agreement marks the first Qatari industrial investment within the SCZONE.
The project will span 100,000 square meters in the integrated Ain Sokhna area, divided into 70,000 square meters in the industrial zone and 30,000 square meters at the Ain Sokhna port.
Its annual production capacity will reach 200,000 tons of hydrotreated vegetable oil (HVO), biopropane, and bionaphtha, which are derived from the refining of used cooking oils.
Al Mana Holding has successfully signed a long-term supply contract with Shell, the global aviation fuel company, to purchase all of the project's products.
Meanwhile, the supply of sustainable aviation fuel is scheduled to begin by the end of 2027.
On his part, Prime Minister Mostafa Madbouly affirmed that this project is a valuable addition that enhances the economic zone's capabilities in keeping pace with the global trend towards relying on renewable energy sources.
This aligns with the state’s objectives to boost the promising aviation sector in accordance with environmental sustainability standards, given the sector's anticipated significant global growth.
Waleid Gamal El-Dien, Chairman of the SCZONE, noted that the joint project is expected to reduce harmful carbon emissions by 50% to 80% compared with conventional jet fuel.
He commended the project's success in securing an offtake supply agreement with Shell to meet global market demands, which will boost exports from the economic zone's projects.
It will also support Egypt's plans to enhance exports and reduce imports, while contributing to sustainable economic development.
The signing of the agreement coincides with the Egypt-Qatar Investment Forum, which was held in Cairo on December 14th.
During his speech at the forum, Minister of Investment and Foreign Trade Hassan El-Khatib highlighted that the trade between the two countries increased by 80% to $143 million in the first 10 months of 2025 from about $80 million in 2023.
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