Egypt’s Suez Canal Authority announced that it has signed a $2 billion strategic partnership with Anchorage Investments to develop a petrochemical complex in Ain Sokhna.

According to a statement from the authority, the first phase of the project will focus on producing polypropylene and hydrogen, two vital materials in the global energy and manufacturing sectors.

Polypropylene is used extensively in packaging, automotive, and construction industries, while hydrogen is emerging as a cleaner energy source that supports Egypt’s transition toward a more sustainable industrial economy.

A second phase, estimated to cost an additional $4.5 billion, will include the construction of complementary plants to manufacture other petrochemical products, primarily for export.

This expansion is aimed at positioning Egypt as a regional hub for petrochemical production and trade, leveraging its strategic location along the Suez Canal, one of the world’s busiest maritime routes.

The project also aligns with Egypt’s broader efforts to attract foreign investment and diversify its economy, particularly at a time when the Suez Canal, a vital source of foreign currency, faces mounting challenges.

Traffic through the canal has slowed amid ongoing regional instability, leading to a sharp decline in revenue. President Abdel Fattah al-Sisi recently revealed that the canal is losing about $800 million in monthly revenue due to disruptions in shipping routes.

According to Egypt’s central bank, the canal’s revenue fell to $880.9 million in the fourth quarter of 2024, down from $2.4 billion a year earlier.

Source: Africabusinessinsider