Egypt’s Ain Sokhna Industrial Zone, part of the Suez Canal Economic Zone (SCZONE), is set to host three major industrial projects worth a combined $3.5 billion under a new agreement between Kemet Industries Group and Emirati-Chinese firm Al Qalaa Red Flag.

According to an official statement, the partnership will involve the establishment of a seamless steel pipe plant with an annual capacity of up to 250,000 tons, thereby supporting Egypt’s infrastructure and urban development initiatives while reducing its dependence on imports.

Officials stated that the initiative aligns with SCZONE’s strategy to localize the industry, attract advanced manufacturing technology, increase local content, and expand Egypt’s export capacity.

In a statement published on Facebook, the Egyptian Cabinet confirmed the $3.5 billion investment and emphasized the role of the projects in advancing the authority’s industrial development goals.

The Chairman of the SCZONE described the partnership as a “boost to investments” within the zone, adding that it strengthens efforts to increase local manufacturing and enhance export competitiveness.

According to the government, the projects are expected to create employment opportunities for young Egyptians, contributing to broader economic and social development objectives.

The announcement comes amid heightened investment activity in the SCZONE. During the 2024–25 fiscal year, the zone finalized 129 projects worth $4.4 billion, creating more than 31,000 direct jobs.

Between July and mid-September of the current fiscal year, the authority secured an additional 26 industrial and logistics agreements worth $1.85 billion, which are expected to generate approximately 21,800 jobs.