• Egypt signed a $200 million SAF investment deal with Qatar’s Al Mana Holding.
• The project marks the first Qatari industrial investment in the Suez Canal zone.
• Production is set to start by 2027 under a long-term offtake deal with Shell.

On December 14, on the sidelines of the Egypt–Qatar Business Forum held in Cairo, Egypt signed an agreement with Qatari conglomerate Al Mana Holding for an initial $200 million investment in a sustainable aviation fuel (SAF) production project. The facility will be located in the integrated Sokhna zone on the Red Sea and represents, according to Egyptian authorities, the first Qatari industrial investment in the Suez Canal Economic Zone (SCZONE).

The project will be developed by a newly created entity, Saf Fly, and rolled out in three phases. The first phase is expected to deliver annual production capacity of about 200,000 tons, including SAF, biopropane, and bionaphtha, all derived from refined used cooking oil. Al Mana Holding has secured a long-term supply agreement with Shell, which has committed to purchasing the entire output of the facility. Initial deliveries are expected by the end of 2027, providing early visibility on market outlets and reducing commercialization risks.

The agreement forms part of Egypt’s broader strategy to develop low-carbon aviation fuels. On December 4, the country awarded its first SAF production license to the Egyptian Sustainable Aviation Fuel Company (ESAF), a subsidiary of the state-owned petrochemical holding company ECHEM, for a separate project in Alexandria.

Prime Minister Mostafa Madbouly, who attended the signing ceremony, said the initiative with Al Mana Holding reflects the positive momentum in relations between Cairo and Doha. He noted that the project aligns with a shared political commitment to strengthen bilateral cooperation through joint investments and increased trade flows.

SCZONE authorities highlighted the project’s alignment with the area’s sustainability strategy. Its chairman, Walid Gamal El-Din, said the use of sustainable aviation fuel could reduce harmful emissions by between 50% and 80% compared with conventional fuels. He also emphasized the zone’s growing appeal for industrial investors, citing its infrastructure, diversified energy sources, and supportive regulatory framework.

Globally, SAF use is expanding, with more than 360,000 commercial flights having already used the fuel, according to the International Civil Aviation Organization. In Africa, airlines such as Ethiopian Airlines and Kenya Airways are planning to adopt SAF in the coming years.

Olivier de Souza