Suez Canal Authority Signs $2 Billion Agreement to Establish Petrochemical Complex in Ain Sokhna
The Suez Canal Authority (SCA) has announced a major step toward industrial expansion in Egypt’s maritime sector through the signing of a strategic partnership agreement with Anchorage Investments. The collaboration aims to establish a world-class petrochemical complex in Ain Sokhna, located within the Suez Canal Economic Zone (SCZONE) one of Egypt’s most important logistics and industrial hubs.
The deal, valued at over $2 billion in its first phase, represents a significant milestone in Egypt’s ongoing strategy to strengthen industrial capacity, attract private investment, and advance technological integration across strategic sectors connected to energy, logistics, and maritime infrastructure.
Strengthening Egypt’s Position as a Regional Maritime and Energy Hub
Situated northwest of the Gulf of Suez, the new petrochemical complex will be developed on SCA-owned land, reflecting the Authority’s vision to diversify its activities beyond canal navigation. The initiative also aligns with Egypt’s national goals to build a sustainable industrial base, supported by advanced manufacturing technologies and strong international partnerships.
This project is part of Egypt’s broader commitment to reinforce its status as a strategic gateway between global trade routes, leveraging the Suez Canal’s unique position to integrate industrial, energy, and logistics growth.
Phase One: Polypropylene Production and Hydrogen By-Product
In its first stage, the Ain Sokhna complex will focus on producing polypropylene (PP) using propane feedstock a vital industrial material used in packaging, construction, and automotive applications. The process will also generate hydrogen as a by-product, marking an important step toward cleaner and more sustainable industrial practices.
The $2 billion investment is only the beginning. The second phase will expand production capacity to include additional petrochemical derivatives and complementary industrial units, raising the total investment to approximately $4.5 billion.
When fully operational, the facility is expected to create over 2,500 direct and indirect jobs, reduce Egypt’s petrochemical imports, and enhance export competitiveness, contributing to a stronger and more self-sufficient industrial economy.
Commitment to Sustainable Industrial Development
Admiral Osama Rabie, Chairperson of the Suez Canal Authority, reaffirmed the SCA’s dedication to fostering long-term industrial partnerships that enhance national growth:
“The establishment of a petrochemical complex on the Authority’s land in Ain Sokhna reflects the Suez Canal’s clear strategy to optimize its assets, diversify its activities, and create multiple income streams.”
This project not only supports Egypt’s energy transition goals, but also complements the SCA’s role in developing integrated maritime ecosystems, combining industrial growth with sustainable infrastructure.
Anchorage Investments: Driving Innovation in Petrochemicals
Ahmed Moharram, Founder and Managing Director of Anchorage Investments, emphasized the company’s mission to develop transformative industrial projects that align with Egypt’s long-term vision for export-oriented, sustainable manufacturing.
He explained that the Anchorage Polypropylene Complex is the first phase of a broader industrial strategy for the chemical and petrochemical sectors, integrating global expertise in engineering, technology, and construction.
This collaboration follows international standards of transparency, governance, and operational excellence, ensuring the complex’s competitiveness on a global scale.
Supporting Egypt’s Integrated Maritime and Industrial Growth
As a key part of the Suez Canal Economic Zone, Ain Sokhna has rapidly become a focal point for industrial investment and marine infrastructure development. The upcoming petrochemical complex will further position the region as a central hub for energy, logistics, and trade operations a crucial link between Asia, Europe, and Africa.
This development also reflects Egypt’s broader ambition to localize industrial production, reduce import dependency, and expand its export portfolio objectives that align with the nation’s economic modernization plans.
Manta’s Perspective
At Manta, we view this agreement as a defining moment for Egypt’s maritime and industrial sectors. The Suez Canal’s expansion into petrochemical manufacturing represents a new dimension of integration between energy, industry, and logistics an approach that will reshape the future of the marine services ecosystem in the region.
As specialists in marine engineering, port services, and vessel support, Manta recognizes the vital role such projects play in strengthening the supply chain network across Egyptian ports, particularly in Ain Sokhna, Suez, and Port Said.
The continued collaboration between the Suez Canal Authority, private investors, and international partners reinforces Egypt’s position as a leader in sustainable maritime development where industrial innovation and marine excellence move hand in hand.
