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Egypt clarifies Ain Sokhna land deal with Al Mana Holding

Businessmen Team news 18 December 2025 09:10 PM
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Egypt clarifies Ain Sokhna land deal with Al Mana Holding

The Cabinet’s Media Center issued a statement on its official platforms. It clarified the truth behind claims that Egypt had ceded land in Ain Sokhna to Qatar’s Al Mana Holding Company without securing any financial or investment return for the state.

The Suez Canal Economic Zone (SCZone) Authority confirmed that the SCZone and all its industrial areas and facilities are fully state-owned. They remain under Egyptian sovereignty.

The authority explained that the land allocated to Al Mana Holding Company for its sustainable aviation fuel (SAF) project in the Ain Sokhna Integrated Zone is granted under a usufruct system. This is the same system used in other investment contracts within the zone. No part of the land was ceded. The $200 million investment represents only the project’s development costs, not payment for land use.

The Media Center noted that the project generates multiple direct and indirect returns for the state. Direct returns include fees for land use, revenues from trading at Ain Sokhna Port, and other administrative fees. Indirect returns include investment spending that supports the construction and operations of several Egyptian companies. The project also purchases local raw materials and creates thousands of direct jobs for Egyptian workers.

The statement clarified that all tax and customs exemptions serve as investment incentives under SCZone law for special economic zones. These incentives are general and legal in nature. They are not granted to any specific investor individually.

The agreement between Al Mana Holding and Shell for the full purchase of the project’s output was concluded before signing the project construction contract within the SCZone. It is based on extensive financial studies. The studies ensure marketing of the products and a return on investment. This reflects a core economic principle for project feasibility.

The authority added that the project’s location in the SCZone was chosen to leverage the integration between the industrial area and the port. It brings production closer to target markets. This enhances efficiency and reduces costs in manufacturing and transport.

Ain Sokhna Port, recognized by Guinness World Records as the deepest man-made harbor, serves as a strategic gateway on the Red Sea. It is a key entry point to Africa. Following recent developments, the port is fully equipped to handle various types and sizes of vessels with different cargo capacities.

The authority urged citizens not to be misled by false information. Such claims target Egypt’s major investment projects and aim to harm the country’s economic progress.