A $100 million iron and steel plant to be built by Egypt and Qatar

A new plan to build a $100 million iron and steel plant is now in motion, and this project will be led by an Egyptian-Qatari partnership. It has been agreed that this plant will be based in southern Egypt, specifically Qena. A large amount of the production is due to be exported to both regional and international markets. Now that this plan is confirmed, the factory aims to apply for a licence during the first half of 2025. From there, it is hoped that production will commence in 2026.

Before the plant is ready to enter the commissioning stage, the company in charge of the project has laid out plans to buy the required production lines. The company will do this through a cooperation with the Italian Danieli Group and it is the company’s aim to complete this purchase before the target start of production date in 2026.

Throughout the process so far, the investment partnership between Egypt and Qatar has aided and accelerated this project. The factory is currently under construction and its next step will be to apply for a license from the Ministry of Industry and Technology (Ministry of Industry and Trade). This license will enable the factory to produce rebar, as well as operate within the iron and steel sector.

Once it is in operation, the majority of the production from the new iron and steel plant, will go directly to foreign markets. It has been stated that an estimated, ‘80 per cent of the production will be exported to the Arab world, gulf countries, Africa and Turkey.’ On top of this, the plant is also planning to sell these regions high-quality rebar, whilst the other twenty per cent will go to the local market to be sold there. Selling their products in this way will make it possible for the factory to create a presence in both the domestic markets and the regional markets.

The collaboration between these companies dictates that the Egyptian investors are responsible for providing the land, as well as the construction of the factory. The Qatari partners will focus on financing the project, along with ensuring expenses such as the purchase of the production lines and raw materials are handled efficiently. Splitting the responsibilities in this way will mean that Egypt has a 51% share of the project, whilst Qatari will have a 49% share of the project.