• Egypt starts building a solar components plant in Ain Sokhna’s economic zone

• Chinese group Sunrev is investing $200 million to develop the project in two phases

• The site will export $300 million worth of solar panels yearly to Africa, the Middle East, and Europe

Egypt has launched construction of a new solar photovoltaic industrial complex in the Suez Canal Economic Zone (SCZONE), located in Ain Sokhna. Work began on Thursday, June 19, as part of the country’s efforts to create a renewable energy manufacturing hub.

The 20-hectare site will focus on producing solar components locally to support Egypt’s push for a green industrial sector. The project involves a $200 million investment from Chinese firm Sunrev and will be developed in two phases. The first phase focuses on assembling solar panels, while the second will establish local production of silicon and wafers, essential materials for solar cells.

This initiative is part of a broader strategy led by the SCZONE Authority, the autonomous public body overseeing industrial and logistics development along the canal. The area offers direct access to six ports, road and rail infrastructure, and maritime routes linking the Mediterranean to the Red Sea.

The SCZONE provides attractive tax breaks, customs incentives, and a simplified legal framework to encourage investment. These measures aim to support industrial relocation to Egypt, especially in green sectors. The zone has already secured over $64 billion in agreements for renewable energy projects, including green hydrogen, solar, and wind energy.

The SCZONE covers more than 460 square kilometers and offers favorable conditions for solar energy production, particularly along the Gulf of Suez. The new Ain Sokhna project reflects a key shift in Egypt’s strategy to build an integrated green industrial sector that can produce locally, export globally, and strengthen energy security. This comes at a time when Egypt faces challenges due to declining natural gas production in recent months.

The complex is expected to export $300 million worth of locally manufactured solar modules each year, positioning the Suez Canal Economic Zone as a future export hub for Africa, the Middle East, and Southern Europe. The project aligns with Egypt’s energy security strategy and efforts to become a key player in renewable energy manufacturing.