Egyptian-UAE free zone for oil storage and trading established in New Alamein
Egypt has completed the establishment of Fujairah Alamein Oil and Gas Company after approving a private free zone for the firm in New Alamein, according to a statement by the Ministry of Investment and Foreign Trade.
The new zone, covering approximately 738,000 square metres in the Mediterranean city, will host facilities specialising in the storage and handling of crude oil and petroleum products, according to a ministry statement.
Investment and Foreign Trade Minister Mohamed Farid said the speed with which the company was established demonstrated how government approvals could be converted into operational projects within a short period.
He said the use of different investment regimes, including free zones, and coordination between government ministries could accelerate the implementation of energy projects.
The investment ministry is working with other state bodies, particularly the Ministry of Petroleum and Mineral Resources, to complete the remaining requirements and address obstacles that could delay the project, Farid added.
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The Egyptian cabinet had previously approved the establishment of a special free zone for the joint Egyptian-Emirati company in New Alamein, in the northwestern governorate of Matrouh.
Citing the cabinet decree published in Egypt’s official gazette, state media outlet Ahram Online reported last week that the zone would be situated on the southern side of the Alexandria-Matrouh coastal road and supervised by the General Authority for Investment and Free Zones.
Under the terms of the decree, the company must export all of its annual production to international markets. At least 50 percent of the components used in any manufactured products must be sourced locally, the report said.
The company must also demonstrate that it has legal possession of the project site and secure environmental approval from the Egyptian Environmental Affairs Agency.
Additional conditions cover the physical security of the site, including the installation of surveillance cameras and security towers, as well as compliance with industrial safety, civil defence and fire-protection standards.
Regional energy hub
The project follows three agreements signed in 2025 between Egyptian authorities and the Emirate of Fujairah. The agreements covered the development of the Fujairah-Alamein logistics zone for crude oil and petroleum products, alongside expansion and modernisation work at El-Hamra Port, west of Alexandria.
Egypt has been seeking to use its ports, transport links and position between major markets to strengthen its role as a regional centre for the storage, processing and trade of energy products.
The government is also attempting to attract greater foreign investment and increase exports as the country faces pressure on its energy supplies and foreign currency reserves.
According to official figures, Egypt’s crude oil exports reached $115.3m in April 2026, an increase of $15.6m compared with the same month a year earlier. Exports of petroleum products rose by $181m year on year to $585.2m.
The government is targeting a 20-percent increase in oil and gas exploration and production activity during 2026 as part of a five-year programme, while expanding its capacity to process and export refined products.
New Alamein has become a focus of efforts to draw private and overseas investment to Egypt’s Mediterranean coast. Projects announced for the city include a $140m metallic silicon complex, an $82m furniture manufacturing free zone and a green industrial complex valued at 12bn Egyptian pounds ($236m).
Government figures put total public and private investment in New Alamein at 240bn Egyptian pounds in 2024.
The development also forms part of a broader rise in Emirati investment in Egypt under the government of President Abdel Fattah el-Sisi, which includes the $35bn Ras El-Hekma agreement on the Mediterranean coast, announced in 2024.
Farid said his ministry would continue coordinating with the relevant authorities so that Fujairah Alamein could begin operating promptly, meet its investment targets and maximise its contribution to the Egyptian economy.
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