Egyptian-UAE free zone for oil storage and trading established in New Alamein
Egypt has established a private free zone for the Fujairah Alamein Oil and Gas Company in New Alamein, a Mediterranean city, to store and trade crude oil and petroleum products. The zone will cover approximately 738,000 square meters and will host facilities specialising …
Intelligence analysis by Llama
Egypt has established a private free zone for the Fujairah Alamein Oil and Gas Company in New Alamein to store and trade crude oil and petroleum products. The zone will cover approximately 738,000 square meters and will host facilities specialising in the storage and handling of crude oil and petroleum products.
Imagine a big warehouse where oil and gas can be stored and traded. That's what the new free zone in New Alamein is. It's like a big hub where companies can come and do business with each other. The government is trying to make Egypt a big player in the energy market, and this free zone is a big step towards that goal.
Analysis
New Alamein Free Zone: A Regional Energy Hub in the Making
The establishment of the Fujairah Alamein Oil and Gas Company's private free zone in New Alamein marks a significant milestone in Egypt's efforts to strengthen its role as a regional centre for the storage, processing, and trade of energy products. The zone, covering approximately 738,000 square meters, will host facilities specialising in the storage and handling of crude oil and petroleum products.
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.
The establishment of the free zone is a key component of Egypt's efforts to increase its energy exports and attract foreign investment. The zone will enable the company to export all of its annual production to international markets, while also requiring at least 50 percent of the components used in any manufactured products to be sourced locally.
The project's success will depend on the company's ability to meet its investment targets and maximise its contribution to the Egyptian economy. The government is working with other state bodies to complete the remaining requirements and address obstacles that could delay the project.
Regional Energy Hub
The establishment of the free zone is part of a broader rise in Emirati investment in Egypt under the government of President Abdel Fattah el-Sisi. The $35bn Ras El-Hekma agreement on the Mediterranean coast, announced in 2024, is another example of Emirati investment in Egypt.
The development of the free zone will also contribute to Egypt's efforts to increase its energy exports and attract foreign investment. The country'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.
Government Support
The government is providing support to the company to ensure its success. Investment and Foreign Trade Minister Mohamed Farid said that the speed with which the company was established demonstrated how government approvals could be converted into operational projects within a short period.
Farid also highlighted the use of different investment regimes, including free zones, and coordination between government ministries as key factors in accelerating the implementation of energy projects. The investment ministry is working with other state bodies to complete the remaining requirements and address obstacles that could delay the project.
Key points
- Egypt has established a private free zone for the Fujairah Alamein Oil and Gas Company in New Alamein to store and trade crude oil and petroleum products.
- The zone will cover approximately 738,000 square meters and will host facilities specialising in the storage and handling of crude oil and petroleum products.
- The project follows three agreements signed in 2025 between Egyptian authorities and the Emirate of Fujairah.
- The government is providing support to the company to ensure its success.
- The project's success will depend on the company's ability to meet its investment targets and maximise its contribution to the Egyptian economy.
If the free zone is successful, it could lead to an increase in Egypt's energy exports and attract more foreign investment. This could help to boost the country's economy and improve its energy security.
However, there are also risks associated with the project. For example, if the company is unable to meet its investment targets, it could lead to delays and cost overruns. Additionally, the project's success will depend on the company's ability to comply with environmental and industrial safety standards.
