Key facts
- Egypt and the UAE have established Fujairah Alamein Oil and Gas Company.
- A new free zone for oil storage and trading has been approved in New Alamein, Egypt.
- The zone will span approximately 738,000 square metres on Egypt's Mediterranean coast.
- The company must export all its annual production and meet local sourcing requirements for manufactured goods.
- This initiative is part of Egypt's strategy to become a regional energy hub and attract foreign investment.
Egypt has finalized the establishment of Fujairah Alamein Oil and Gas Company, a joint venture with the UAE, by approving a dedicated private free zone in the Mediterranean city of New Alamein. This new zone, spanning approximately 738,000 square metres, is designated for the storage and trading of crude oil and petroleum products.
Investment and Foreign Trade Minister Mohamed Farid highlighted the swift government approvals and inter-ministerial coordination as key factors in accelerating the project's implementation. The ministry is collaborating with the Ministry of Petroleum and Mineral Resources to address any remaining requirements and potential obstacles.
The Egyptian cabinet had previously sanctioned the creation of this special free zone, which will be overseen by the General Authority for Investment and Free Zones. According to reports, the company is mandated to export all its annual production and must ensure at least 50 percent of components for any manufactured goods are sourced locally. Additional conditions include site security, environmental compliance, and adherence to safety standards.
This initiative is part of Egypt's broader strategy to leverage its strategic location and infrastructure to become a significant regional hub for energy product storage, processing, and trade. The government aims to attract greater foreign investment and boost exports amidst pressures on its energy supplies and foreign currency reserves. Recent figures show an increase in Egypt's crude oil and petroleum product exports.
New Alamein is a focal point for attracting private and overseas investment, with other projects like a metallic silicon complex and a green industrial complex also announced for the city. The development also reflects a broader trend of increasing Emirati investment in Egypt, exemplified by the significant Ras El-Hekma agreement.