Egypt is one of the most important countries in the Middle East and Africa. It has a large population, a strategic location between continents, and a growing economy. One of the most exciting areas for business in Egypt is its energy sector. Over the past decade, Egypt has made big moves to develop its energy resources, attract investors, and become a regional energy hub.

In this blog, we will explore why Egypt is a good place for energy investment, what types of energy projects are available, and what businesses need to know before investing.

There are many reasons why Egypt is attracting interest from investors around the world. Let’s look at the key factors:

• Strategic Location: Egypt is located between Africa, Asia, and Europe. It controls the Suez Canal, one of the busiest trade routes in the world. This makes Egypt an ideal place to produce and export energy to different markets.

• Growing Demand for Energy: With a population of over 100 million people, Egypt needs a lot of energy. As the economy grows and industries expand, the demand for electricity and fuel is increasing.

• Government Support: The Egyptian government has made many reforms to support energy investments. It has introduced laws that encourage private companies to enter the energy sector, such as the Electricity Law and Renewable Energy Law. These reforms make it easier and safer for foreign investors to do business in Egypt.

• Natural Resources: Egypt has a mix of energy sources. It has large reserves of natural gas, sunshine all year round for solar energy, strong winds for wind power, and even some oil. This makes it possible to invest in both traditional and renewable energy projects.

There are several types of energy projects where businesses can invest. Below are the main areas of opportunity, with expanded details to highlight the depth of potential in Egypt’s growing energy market:

Natural Gas: Egypt is among Africa’s top producers of natural gas. The discovery of the massive Zohr gas field in the Mediterranean Sea has placed Egypt on the global energy map. Egypt now exports gas to Europe through its liquefied natural gas (LNG) facilities, making it a key supplier in times of global energy crisis.

Investment opportunities include:

• Exploration and production projects in offshore and onshore gas fields.
• Infrastructure development, like pipelines, LNG terminals, and storage units.
• Joint ventures with Egyptian companies in gas processing and distribution.
• Supplying equipment, engineering, and technical services to the sector.

Renewable Energy (Solar and Wind): Egypt has great potential for renewable energy thanks to its sunny climate and steady winds. The government is targeting 42% of electricity to come from renewables by 2035, with many megaprojects already launched.
Investment opportunities include:

• Construction and operation of solar and wind power plants.
• Supplying photovoltaic panels, turbines, and other renewable technologies.
• Participating in public-private partnerships (PPPs) for large-scale energy projects.
• Investing in energy storage and hybrid energy systems.
• Providing consulting or technical services for feasibility and environmental studies.
  

Electricity Generation and Transmission: To support economic growth, Egypt is increasing its power generation capacity. At the same time, it is upgrading its aging electrical grid to reduce energy losses and improve efficiency.
Investment opportunities include:

• Building new power plants (gas-fired, combined cycle, or renewables).
• Developing high-voltage transmission lines and smart grids.
• Offering digital solutions like smart meters and grid automation.
• Exporting electricity to neighboring countries through regional connections.
  

Green Hydrogen and Sustainable Fuels: Egypt is positioning itself as a global hub for green hydrogen and ammonia, especially in the Suez Canal Economic Zone. The country has signed agreements with European, Asian, and Gulf companies to explore this future energy source.
Investment opportunities include:

• Building green hydrogen production plants using solar and wind power.
• Setting up ammonia and methanol plants for exports.
• Establishing research and training centers for hydrogen technologies.
• Collaborating with global partners on technology transfer and pilot projects.
  

Energy Efficiency and Carbon Reduction Projects: With rising global pressure to reduce carbon emissions, Egypt is focusing on energy efficiency in industries, transportation, and buildings.

Investment opportunities include:

• Projects that promote clean technologies and energy-saving systems.
• Retrofitting old buildings and factories to improve energy use.
• Partnering on carbon credit and emissions trading schemes.
• Providing energy audit and certification services.

This wide variety of opportunities shows that whether a business is large or small, and whether it operates in traditional energy or green technology, Egypt has space for involvement and growth.

Egypt has become one of the best places to invest in the energy market. It covers the Middle East and North Africa. This is due to its strategic position, large natural resources, and helpful government reforms. There are many investment opportunities for businesses in Egypt’s Energy sector

1. Oil and Natural Gas

Opportunities: Egypt’s Ministry introduced a new oil and gas bidding round in 2025. It promotes 7 undeveloped natural gas fields in the Mediterranean Sea and 6 new exploration blocks in the Gulf of Suez and Western Desert. Over the past decade, the nation has changed from being a net importer of energy to a regional center for the export of electricity, natural gas, and renewable energy.

Impact: In the past decade, Egypt’s bidding rounds were accepted for 13 blocks, showing investments of more than US$700 million. If the discoveries produce enough oil or gas.  And this is rising. 

Major Projects: International oil companies already play an important role in the Western Desert and the Mediterranean. The Ministry also works with many ongoing projects. 

2. Gas and LNG projects

Opportunities: Egypt has LNG plants. In 2024, Egypt exported LNG Plants. They have 2 plants – the Damietta and IDKU. They help to process gas for export. Imported gas is also available. The energy sector has valuable chances for both domestic and foreign businesses due to growing domestic demand, global collaboration, and strong national development, like Egypt’s Vision 2030.

Impacts: These gas supplies reduce power shortages and preserve FX. The trade balance in 2024/25 is a $ 7.6 billion shortage, which shows recent flows.

Major Projects: According to CBE data, oil and gas import systems have increased. This 

improves the supply procedure. It also improves the power plant and industrial systems. 

3. . Popular Power resources – Wind Energy

Opportunities: Egypt is popular for wind power resources, especially in the Gulf of Suez. Nowadays, this project is spreading on a large scale. 650 MW GROSII and 500 MW Amunet wind farms are large-scale projects. The government introduced a renewable energy target. It can also access export-linked offtakes in the future. It is a great place for both local and foreign investors to make money through international partnerships. 

Impacts: Large LPPs decrease gas burn, free FX, and also introduce fuels. These also create a local supply chain. Wind energy projects also help the GDP rate. There are many mega projects built in  2024. It is a great place for both local and foreign investors to make money through international partnerships. The energy sector in Egypt is rapidly upgrading and switching. This development updates their national GDP.

Major Projects: ACWA Power is developing in the Gulf of Suez/ Gabal El-Zeit, wind farm completed in mid 2025 in the Gulf of Suez. Red Sea Wind Energy is about a 750 MW project, and it is managed by a partnership between ENGLE, Toyota, Tsusho, and Orascom Construction. 

4. Utility – Scale Solar power

Opportunities: Egypt is expanding its utility-scale power through new independent power producer(IPP) projects. It also introduced large-scale battery systems such as AMEA Power. It also introduced mega sites such as Benban. It also plays a vital role in promoting their national trade position. Investors can look into this section and participate to contribute to the trade.

Impact: It decreases gas timing and also helps to lower generation costs. GDP is also supported by this solar power. This system also removes power storage. and reduce LNG import bills

Mega projects: Benban solar park is one of the largest projects with a capacity of 1.8 GW. The government also supports IPP projects. AMEA’s power project capacity is 500 MW solar. There are many hybrid plants. The Obelisk hybrid plant covers 1.1 GW of solar with 200MWh of battery storage in Magga Hammadi. 

5.   Significant Incentives of Green Ammonia Projects

Opportunities: In the Suez Canal and Mediterranean are projects of Green hydrogen and Green Ammonia. The project goal is to become a low-carbon energy hub, and the Global Partnership supports it. Egypt offers significant incentives in accordance with Law No.2 of 2025. Investors can gain tax returns that range from 33% to 55%,  in addition to extensive VAT and Tax benefits. These are some of the top hydrogen incentives available in developing nations.

Impacts: Egypt uses LNG facilities and also promotes work with European and Gulf investors to build a green hydrogen industry. Egypt plans to receive more than $60 billion in green hydrogen and ammonia as a national project by 2040.

Major Projects: ACWA Power is a renewable partner in a green hydrogen project in the SCZONE. Egypt wants to lead the green hydrogen market. Mediterranean Energy plants is a hydrogen plant in the SCZONE. It has the capacity to supply green ammonia and hydrogen. 

6. The Suez Canal Economic Zone ( SCZONE)

Opportunities: SCZONE in Egypt is actively developing alternative fuel bunkering for ammonia and methanol. The green methanol bunkering operation for a Maersk container has already been completed. Japanese partners like ITOCHU Corporation and Orascom Construction hope to establish ammonia bunkering facilities at East Port Sokhna ports. 

Impacts: There are exporting systems of green fuels (ammonia/methanol). They sell fuel to ships through the Suez Canal. It helps to get foreign currency. SCZONE also manages different fuels such as ammonia, methanol, and LNG 

Major Projects: SCZONE – lTOCHU-  ORASCOM agreements are a supportive tool to ammonia marine fuel supply and green hydrogen cooperation for bunkering. 

7. Public-Private Partnership Program, Education

Opportunities: It is a very popular project. Egypt is connected with one of MENA’s largest famous power desalination programs under the PPP program. It also attracts foreign and local investors to build solar-powered plants. 

Impacts: It gives secure fresh water. Local industry and manufacturing of key desalination sectors also connect with it. It also decreases reliance on fossil fuels and increases environmental safety. 

Major projects: 15 water plants are planned under PPP. Its goal is to produce around 3.35 million m3 / day by 2025.  According to this, 17 local and international industries have already been selected. 

8. Egypt’s Petro Chemicals and Fertilizers

Opportunities: Egypt’s industrial area supports ammonia/urea/ methanol growth and downstream, especially chemicals, and Leveraging Gas.

Impacts: Egypt’s one of the biggest non-oil exports is chemicals; these products increase foreign currency earnings and contribute more to manufacturing GDP. It also supports the balance of the economy. Exports of ammonia and urea contain a high value of foreign currency. 

Major Projects: SCZONE exported the new green ammonia projects. In EU markets, green feedstock has been updated. 

9. Industrial and Building Energy Efficiency

Opportunities: It develops such things as waste heat recovery, energy-efficient motors, better air systems, LED lights, and smart building controls. If the gas supplies are tight, these steps are very important.  

Impacts: Efficiency removes fuel for energy, and exports minimize foreign exchange payments for fuel imports and develop total factor productivity. It is a major level of manufacturing GDP advantage. Lower essential energy use reduces the need for imports such as oil products and LNG. It can support future carbon products. 

Major projects: Government and DFIs such as Amcham-profiled clean energy programs, green financing lines. It also promotes private retrofits and distributed solutions. 

10. Desert Land Law Amendment (2024) 

Opportunities: Desert lands are used as investment projects. Many foreign industries buy desert land. They use it for many projects, such as green hydrogen projects. 

Impacts: It helps to complete Egypt’s goal by 2030 for renewable energy and exports. It promotes energy projects, green hydrogen projects in the Large desert.

Major projects: In Mediterranean areas, green hydrogen projects cover desert areas for solar and wind power. Acwa Power’s 1.1 GW renewable project in desert land. 

There are many hook points about the investment opportunities of Egypt’s energy sectors

• Top incentives are open to Green hydrogen and Ammonia in Egypt (Law 2/2024). It also includes Golden license fast-track permits, VAT/ customs exemption, and tax cash-back, with more than $37 billion in early-stage investments. The SCZONE is becoming a center for green fuel.
• There are many major projects like ACWA Power’s 1.1 GW wind energy projects that show Egypt is the best for wind power in the Gulf of Suez. 
• Egypt plans to build Desalination plants that will offer 3.35 m3 of water per day by 2025.  17 local Industries are already connected. It promotes water Security 
• New gas balance helps to reduce Egypt’s blackout risks 
• From raw gas to high-value materials such as ammonia,  urea plays a supportive role for GDP. Green soil power also gets value in EU markets.  

Here are a few more reasons that make Egypt a good place to invest in energy:

• Legal Framework for Investment: Egypt passed new laws to protect investors and allow them to produce and sell electricity. The Renewable Energy Law (2014) and the Investment Law (2017) are examples of this. These laws provide guarantees and benefits such as tax incentives, land access, and repatriation of profits.

• Competitive Tariffs and Agreements: The Egyptian government offers Feed-in Tariffs (FiTs) and Power Purchase Agreements (PPAs) to attract investment. These agreements give investors a fixed rate for selling electricity, helping them plan their business model and returns.

• Public-Private Partnerships: Egypt promotes PPPs to finance and operate energy projects. This model allows private companies to share risks and returns with the government. Several successful projects in power generation, renewables, and infrastructure have been built under PPP agreements.
• Skilled Workforce and Local Support: Egypt has a large and growing pool of engineers, technicians, and specialists trained in energy and construction. Local firms and suppliers are also experienced in working with international investors, which reduces costs and delays.
  

Although the opportunities are promising, there are also some risks that investors need to be aware of:

• Regulatory Delays: Some investors have faced delays in project approvals, land allocation, or getting licenses. These issues are improving with government reforms, but they still exist in some areas. The government is already working on this. 

• Currency Risks: Foreign investors need to consider the impact of currency exchange rates and inflation. Fluctuations in the Egyptian pound can affect project costs and profits. Some companies use hedging or negotiate contracts in US dollars to reduce this risk.

• Grid Capacity: While the electricity grid is improving, some remote areas may have limited access. This can affect the speed and cost of new energy projects, especially renewable ones, far from existing infrastructure.

• Political and Economic Factors: Like any developing country, Egypt can be affected by political changes, inflation, or regional tensions. It is important to stay updated on local conditions and maintain strong partnerships with trusted local entities.
  

To manage these risks, many investors work with local partners, international development banks, and legal advisors who understand the Egyptian market.

Egypt’s energy sector offers a wide range of business opportunities. With strong government support, a strategic location, and rich natural resources, Egypt is on its way to becoming a leading energy hub in the region. Whether your business is focused on natural gas, renewable energy, electricity transmission, or green hydrogen, Egypt provides the infrastructure, policies, and demand to support profitable investment.

It is important for businesses to conduct thorough market research, understand the legal environment, and build strong local relationships. With the right strategy and planning, the Egyptian energy market can offer high returns and long-term growth for investors.