The Egyptian Cabinet’s Media Center has issued a formal statement to debunk widespread allegations regarding the purported “concession” of land in Sokhna to the Qatari company, Al-Mana Group, without financial or investment returns for the state.
The General Authority for the Suez Canal Economic Zone (SCZONE) categorically denied these claims, reaffirming that the SCZONE, along with all its affiliated facilities and industrial zones, remains fully state-owned and under total Egyptian sovereignty.
Clarifying the usufruct agreement
The Authority clarified that the land designated for Al-Mana Holding’s sustainable aviation fuel (SAF) project in the Sokhna Integrated Zone was granted under a usufruct arrangement, a standard legal framework applied to all SCZONE investment contracts.
The statement emphasized that:
No ownership was relinquished: The state retains full title to the land.
Investment vs. fees: The widely cited $200 million figure represents the project’s initial investment costs and is not the fee paid for the usufruct rights.
Economic impact and returns
The Media Center highlighted that the project is set to deliver significant direct and indirect economic benefits to the Egyptian state.
Direct returns: These include annual usufruct fees, Sokhna Port handling charges, and various administrative fees.
Indirect returns: The project’s investment capital will fund construction and operations carried out by Egyptian companies, stimulate the purchase of local raw materials, and create thousands of direct job opportunities for the Egyptian workforce.
Standardized incentives and strategic feasibility
The statement further clarified that all tax and customs exemptions provided to the project are standard investment incentives mandated by the Authority’s governing law as a Special Economic Zone. These exemptions are not tailored for any specific investor; rather, they are applied impartially and universally under established legal frameworks.
Regarding the project’s viability, the Authority noted that the agreement between Al-Mana and Shell for the supply of the project’s entire output was finalized prior to the signing of the construction contract. This move followed extensive financial feasibility studies to guarantee market access and ensure a robust return on investment (ROI)—a fundamental economic principle for large-scale industrial projects.
Sokhna Port: A strategic global hub
The SCZONE emphasized that the Sokhna region was chosen specifically for its seamless integration between industrial zones and maritime infrastructure. This proximity between manufacturing sites and target markets significantly optimizes production and logistics costs.
The statement also highlighted the strategic importance of Sokhna Port, which holds the Guinness World Record for the deepest man-made harbor basin. As a pivotal window to the Red Sea and a primary gateway to Africa, the port has undergone extensive development, making it fully equipped to accommodate vessels of all types, sizes, and cargo capacities.
