Egypt has signed a $200 million agreement with Qatar-based Al Mana Holding to develop a sustainable aviation fuel (SAF) production facility in the Suez Canal Economic Zone (SCZONE), marking the first Qatari industrial investment in the zone.

The plant will be located in the Ain Sokhna Integrated Zone, covering an area of 100,000 square meters and producing up to 200,000 tons annually, according to a statement from the Egyptian Cabinet. The facility will manufacture SAF and related by-products, including biopropane and bionaphtha, using refined used cooking oil as feedstock.

Al Mana Holding has secured a long-term offtake agreement with Shell for the project’s entire output, with SAF deliveries expected to begin by the end of 2027.

The project supports Egypt’s efforts to expand cleaner fuel production and align its aviation sector with international sustainability standards, amid growing global demand for lower-emission aviation fuels.

Prime Minister Mostafa Madbouly said the agreement, signed on the sidelines of the Egyptian-Qatari Business Forum in Cairo, would strengthen the SCZONE’s role in renewable energy development and support the aviation sector’s transition to cleaner alternatives.

Waleid Gamal El-Dein, chairman of the SCZONE, said environmental sustainability is a central component of the zone’s development strategy, noting that the project could reduce emissions by 50 to 80% compared with conventional fuels. He added that the long-term offtake agreement with Shell is expected to support exports and reduce import dependence.

According to Gamal El-Dein, the SCZONE currently hosts 457 companies, including 296 established since the 2022/2023 fiscal year, with total issued capital of $785 million from international investors.

Abdulaziz Al-Mana, CEO of Al Mana Holding and chairman of Green Sky Capital, said the company welcomed the partnership with the SCZONE, citing Egypt’s investment climate and government support as key factors in advancing the project.