Egypt's Suez Canal Authority Signs $6.5B Deal for Ain Sokhna Petrochemical Complex

Egypt's Suez Canal Authority (SCA) has signed a strategic partnership agreement with Anchorage Investments to develop a major petrochemical complex in Ain Sokhna within the Suez Canal Economic Zone. The project, with total investments exceeding $6 billion, will be implemented in two phases: the first phase, costing over $2 billion, will focus on producing polypropylene and hydrogen as a byproduct, while the second phase, valued at $4.5 billion, will expand production to include other petrochemical products and complementary industrial units aimed at exports and sustainability. The complex is expected to create more than 2,500 direct and indirect jobs and contribute to Egypt's economic diversification by reducing petrochemical imports, boosting exports, and enhancing foreign currency reserves. The initiative aligns with Egypt's broader industrial strategy to maximize asset utilization, attract private-sector investment, and position the country as a regional petrochemical hub leveraging its strategic location along the Suez Canal. The partnership also reflects efforts to support Egypt's transition to a more sustainable industrial economy and address challenges faced by the canal, including declining revenues due to regional instability and shipping disruptions. Overall, this project underscores Egypt's commitment to modernizing its petrochemical sector and strengthening its industrial base through global collaborations and advanced technologies.