Egypt and Qatar Team Up for $100 Million Steel Plant in Qena
In a significant move to bolster Egypt's industrial capacity, an Egyptian-Qatari investment alliance is working on establishing a new iron and steel plant in the Qena Governorate in southern Egypt. The project, which is still under construction, is expected to bring initial investments of up to $100 million. The new steel production facility will focus on the manufacturing of rebar, a crucial material used in construction and infrastructure development.
Strategic Partnership: Egyptian and Qatari Investors Collaborate
The joint venture sees Egyptian investors providing the land and managing the construction of the factory, while Qatari investors will handle the financing for the purchase of production lines and raw materials. Under the terms of the agreement, the Egyptian side will control 51% of the venture, maintaining a majority stake, while the Qatari side will hold 49% of the share. This partnership combines Egypt's land and construction expertise with Qatar's financial backing to create a highly competitive industrial operation.
Licensing and Production Plans
The venture's founders are preparing to submit a request to the Industrial Development Authority (IDA) in Egypt in the first half of 2025 to obtain the necessary license to manufacture rebar and operate within the broader steel industry. Following the licensing process, the next step will be to partner with the Italian group Danieli, a global leader in steel production technology, to purchase the necessary production lines. The operational phase of the plant is expected to commence by early 2026, marking the start of a major expansion in Egypt’s steel industry.
Focus on Export Markets
While the plant will supply the local market with steel products, the bulk of its output is set to be directed toward export markets. Approximately 80% of the steel produced will be sold to Arab nations, Gulf states, and African countries, as well as Türkiye, one of the region's largest steel markets. The remaining 20% of the production will be allocated to meet the demand within the Egyptian market. This export-centric approach is aimed at boosting Egypt's industrial exports and reinforcing its position in regional and global steel markets.
Economic and Industrial Impact
The establishment of this new steel plant is expected to have a multifaceted economic impact. First, it will help diversify Egypt's industrial base and reduce its dependency on imported steel. As an export-driven venture, the plant will also contribute significantly to Egypt’s foreign exchange earnings, especially by tapping into high-demand regional markets. Additionally, the plant’s focus on rebar production will support the growing construction and infrastructure sectors in the region, which have seen significant growth in recent years.
