Qatar’s Al Mana Holding is placing a sizeable bet on Egypt’s clean-energy ambitions, committing $200 million to build a sustainable aviation fuel plant in the Suez Canal Economic Zone, a move that ties Gulf capital, global energy demand, and aviation decarbonisation into one project.
The investment marks the first Qatari industrial entry into the zone and comes with a guaranteed buyer lined up.
A Landmark Deal Inside the Suez Canal Economic Zone
The agreement was signed on Sunday, with Al Mana Holding confirming plans to develop a sustainable aviation fuel production facility inside the SCZONE.
The project will be carried out by a newly formed entity, Saf Fly Limited, and is expected to produce around 200,000 tonnes a year of sustainable aviation fuel, along with BioPropane and Bio Naphtha. All output will be derived from refined used cooking oil, a feedstock increasingly favoured by airlines and regulators.
Egyptian Prime Minister Mostafa Madbouly attended the signing ceremony at the government headquarters in the New Administrative Capital, underscoring the political weight attached to the deal.
Officials described the investment as a signal that the zone’s industrial strategy is gaining traction with regional investors, especially those aligned with energy transition goals.
Shell Deal Locks in Demand Before Production Begins
A key element of the project is certainty on the sales side.
Al Mana Holding has secured a long-term offtake agreement with Shell, under which the energy major will purchase the plant’s entire production output. Supplies are scheduled to begin by the end of 2027, aligning with airlines’ rising demand for lower-emission fuels.
That agreement reduces commercial risk significantly.
For SAF projects globally, securing buyers early has often been the hardest part. Production costs remain higher than conventional jet fuel, and without firm contracts, financing becomes tricky.
By locking in Shell as a buyer, the project clears one of the biggest hurdles before construction even begins.
It also places Egypt on the supply map for international aviation fuel markets, rather than limiting output to domestic consumption.
Egypt Positions the Zone as a Clean Energy Hub
Government officials were quick to frame the investment within Egypt’s wider energy strategy.
Madbouly said the project strengthens the SCZONE’s capacity to host renewable and alternative energy industries while supporting the aviation sector’s shift toward lower-emission fuels, in line with international environmental standards.
The timing matters.
Aviation faces growing pressure from regulators and passengers alike to curb emissions, and sustainable aviation fuel is widely seen as one of the few near-term options that can be scaled without redesigning aircraft fleets.
Egypt, with its strategic location and expanding port infrastructure, wants to be part of that supply chain.
The Sokhna Integrated Zone, where the plant will be built, is central to that pitch.
Inside the Sokhna Integrated Zone Footprint
The facility will span roughly 100,000 square metres within the Sokhna Integrated Zone.
Of that, about 70,000 square metres will sit in the industrial area, with the remaining 30,000 square metres allocated inside Sokhna Port. This layout allows direct access to shipping routes, easing exports of fuel products.
The total investment value stands at $200 million, equivalent to roughly EGP 9.6 billion.
According to the SCZONE, Sokhna is one of four industrial zones under its umbrella, supported by six ports along key trade corridors. The zone has been pitching itself as a logistics and manufacturing hub that links Africa, Asia, and Europe.
Location, in this case, is doing a lot of work.
Emissions Cuts Drive the Project’s Appeal
Environmental impact was a recurring theme during the announcement.
Walid Gamal El-Din, chairperson of the SCZONE, said the project is expected to reduce harmful emissions by between 50 percent and 80 percent compared with traditional aviation fuel.
Those figures align with international assessments of SAF derived from waste-based feedstocks, such as used cooking oil, when lifecycle emissions are measured.
Gamal El-Din added that sustainability is a core pillar of the zone’s development strategy, pointing to infrastructure readiness, access to varied energy sources, and legislative incentives aimed at long-term investors.
Here’s a quick snapshot of what the project brings together:
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Annual output of 200,000 tonnes of SAF and bio-products
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Feedstock sourced from refined used cooking oil
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Full offtake secured through a long-term Shell agreement
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Production targeted to start by end-2027
That combination explains why the project moved from concept to contract relatively fast.
Qatari-Egyptian Ties Provide Political Tailwind
The signing coincided with the Egyptian-Qatari Business Forum held in Cairo, adding a diplomatic layer to the announcement.
Madbouly said the deal reflects improving relations between Cairo and Doha, as both governments push to expand economic cooperation and joint investments.
For Qatar, the project fits into a broader pattern.
Gulf investors have been stepping up exposure to Egypt’s industrial and infrastructure sectors, drawn by currency reforms, asset sales, and incentives aimed at foreign capital. Energy transition projects add another angle, especially as Gulf groups seek to balance hydrocarbon wealth with future-facing assets.
Abdulaziz Al Mana, chief executive of Al Mana Holding and chairman of Green Sky Capital, praised Egypt’s investment climate and the support from political leadership in both countries. He described the SAF plant as a standout partnership with long-term potential.
That praise was clearly intentional.
Aviation Sector Watches Closely as SAF Gains Ground
The aviation industry is paying attention.
Airlines worldwide are under pressure to meet emission reduction targets set by regulators and industry bodies. While electric or hydrogen aircraft remain longer-term ideas, SAF offers a practical option that can be blended with existing fuel.
The challenge has always been supply.
Global SAF production still represents a tiny fraction of total jet fuel demand. Projects like the one planned in Sokhna help close that gap, especially when they come with guaranteed buyers.
For Egypt, hosting such facilities could open doors to additional investments across the aviation value chain, from fuel logistics to maintenance and services.
It also places the country in conversations that extend beyond regional aviation markets.
From Waste Oil to Global Flight Paths
The choice of feedstock is also telling.
Used cooking oil has become one of the most common inputs for SAF production because it avoids competition with food crops and carries lower lifecycle emissions. Collecting, refining, and processing that waste into fuel adds economic value while addressing disposal issues.
Still, feedstock availability can be a constraint.
Projects of this scale require stable, long-term access to waste oil supplies, often sourced across multiple countries. That makes logistics and supply contracts just as critical as plant construction.
Officials did not disclose details of feedstock sourcing, but the involvement of Shell suggests global supply chains will be part of the equation.
What Comes Next as Timelines Stretch to 2027
With contracts signed, the focus now shifts to execution.
Construction timelines, permitting, and equipment sourcing will determine whether production starts on schedule by the end of 2027. Any delays could ripple through airline supply plans, given the tightness of SAF markets.
For now, confidence appears high.
Egypt’s government is keen to showcase early wins inside the SCZONE, while Al Mana Holding gains a foothold in a sector likely to see steady demand growth over the next decade.
As aviation searches for workable answers to its climate challenge, projects like this one offer a glimpse of how capital, policy, and industry might align.
