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Egypt, Qatar's Al Mana Holding sign $200 million sustainable aviation fuel deal

Egypt's Cabinet announced on Sunday that it had signed a deal with Qatar's Al Mana Holding to invest $200 million in the first phase of a project to produce sustainable aviation fuel from used cooking oils at Ain Sokhna's Economic Zone along the Suez Canal.

The project, which will span 100,000 sqm in the Integrated Sokhna Zone along Egypt's Red Sea coast, will be developed over three phases. In a press release, the cabinet stated that the first phase would have an annual production capacity of approximately 200,000 tons.

Egypt claimed that the deal marks the first Qatari investment in the Suez Canal Economic Zone.

Egypt has been attempting to attract foreign investments for many years, particularly from wealthy Gulf states. This is to help it deal with its heavy debts abroad and a large budget deficit.

The Prime Minister Mostafa Mdbouly said that the project "reflects a positive momentum in the relations between Cairo, Doha and the region. This is driven by a shared political will to increase bilateral trade and cooperation through joint investment."

The Qatar sovereign wealth fund's real estate arm announced last month that it will invest

29.7 billion dollars

To?develop luxury real estate and tourism on Egypt's Mediterranean Coast.

This deal was 'the largest Qatari Investment in the Country?since diplomatic ties were restored after a 2017-2021 rift. Egypt, Saudi Arabia, the UAE, and Bahrain had cut ties, accusing Qatar of supporting terrorism, and being too close to Iran. Doha denied these charges. Reporting by Momen?Atallah, Writing by Hatem Maher, Editing by Peter Graff

(source: Reuters)