Egypt Daily News – President Abdel Fattah El-Sisi has called for the acceleration of efforts to localize key industrial sectors in Egypt, particularly in petrochemicals and mining, as part of a broader strategy to maximize the country’s natural resource potential and strengthen its industrial base.
The directive came during a high-level meeting on Sunday with Prime Minister Mostafa Madbouly, Deputy Prime Minister for Industrial Development and Minister of Transport and Industry Kamel El-Wazir, Minister of Investment and Foreign Trade Hassan El-Khatib, Minister of Petroleum and Mineral Resources Karim Badawi, and Dr. Ali Hamed, CEO of the Egyptian Environmental Affairs Agency.
According to the spokesperson for the Presidency, the meeting focused on the latest developments in Egypt’s industrial project pipeline, including the availability of raw materials, financing mechanisms, and efforts to establish international partnerships with leading global firms. Discussions also covered strategies for marketing Egyptian products both domestically and abroad.
President El-Sisi emphasized the critical role of the petrochemicals and mining sectors in adding value to Egypt’s natural and mineral resources. He highlighted the importance of these industries in meeting domestic market needs, expanding exports, and creating new job opportunities. The president directed officials to fast-track the localization of related industries and intensify efforts to attract foreign investment in this vital sector.
Major Agreement Signed in Beijing to Advance Red Sea Petrochemical Project
In a significant step reflecting this national strategy, Egypt’s Red Sea National Petrochemicals Company signed a non-binding framework agreement with China National Chemical Engineering Corporation (CNCEC) to advance the Red Sea Petrochemicals Project, located in the Suez Canal Economic Zone.
The agreement was signed at CNCEC’s headquarters in Beijing, in the presence of senior officials from both sides. The project is regarded as one of Egypt’s most ambitious upcoming ventures in the chemical industries sector, with potential to boost the country’s export capacity and drive large-scale economic development.
Eng. Ibrahim Abdelkader Maki, Chairman of the Egyptian Petrochemicals Holding Company (ECHEM), expressed appreciation for CNCEC’s reception and reiterated the strategic significance of the project. He noted that CNCEC has shown strong interest in investing equity in the venture and may help arrange financing covering up to 85% of the EPC (engineering, procurement, and construction) contract value.
The signing ceremony was attended by representatives of major Chinese financial institutions, including Bank of China, the Export-Import Bank of China, and the state-backed export credit agency Sinosure. Their presence signals growing international confidence in Egypt’s petrochemical industry and its future prospects.
The Egyptian delegation included Ambassador Khaled Nazmy, Egypt’s envoy to China; Rasha Ramadan, Vice President of ECHEM for Finance and Economics; Mohamed El-Saadawy, CEO of the Red Sea Petrochemicals Company; and several advisors and experts involved in the project. On the Chinese side, top executives from CNCEC and its subsidiaries were present.
Eng. Maki highlighted the Red Sea project’s strategic advantages, notably its location near the Suez Canal, licensed production units, and a fully developed execution plan. These features, he said, make the project particularly attractive to global investors, especially amid rising international demand for petrochemical products such as polyethylene and polypropylene.
He also revealed that cooperation with CNCEC has expanded rapidly this year. Three major contracts were signed with CNCEC’s subsidiary TCC, worth nearly $1 billion in total. These contracts cover projects for the production of soda ash, metallurgical-grade silicon, and bioethanol all aimed at reducing Egypt’s reliance on imports and supporting the localization of high-priority industries.
A Strategic Vision for Industrial Self-Sufficiency
Egypt’s intensified push into industrial localization reflects a broader national vision: to transform the country into a regional hub for advanced manufacturing and raw material processing. By aligning with global industry leaders like CNCEC, the government hopes to combine international expertise with local advantages from strategic geographic positioning to abundant natural resources.
As global demand for chemical and mineral-based products continues to grow, Egypt’s strategy is to move beyond raw exports and focus on processing, manufacturing, and value addition all of which will enhance its trade balance, industrial workforce, and technological capabilities.
President El-Sisi’s latest directives serve as a reaffirmation of this long-term policy, placing industrial self-sufficiency and export-oriented growth at the core of Egypt’s economic development agenda.
