Egypt’s Cabinet has approved a proposal from the Ministry of Investment and Foreign Trade to establish a new private free zone at the Sidi Kerir Petrochemicals Complex in Alexandria, creating a significant boost for the specialized chemicals sector.
This initiative, led by the Draschem for Specialized Chemicals project, will cover 157,000 square meters and represents an investment of approximately $158.6 million, with the potential to generate around 500 direct jobs in Alexandria and support further employment in associated industries.
The Draschem project is strategically designed for 100 percent local production, with a focus on exports, aiming to produce between 50,000 and 55,000 cubic meters annually in its initial phase. A planned second phase will double this capacity, further bolstering Egypt’s export capabilities. The project’s ambition underlines strong confidence in Egypt’s economic environment, its pro-investment policies, and its wealth of natural resources, which collectively make it an attractive hub for foreign direct investment and industry-specific projects.
As Egypt’s first production facility of its kind in the MENA region, the Draschem project will introduce advanced technologies for manufacturing sodium cyanide and its derivatives, a milestone in localizing high-value technology within the country. By capitalizing on Egypt’s strategic geographical position and skilled labor force, the project also leverages Egypt’s regional and international trade agreements, enhancing its export reach into new markets.
Beyond direct production, the project is set to contribute to Egypt’s growing mining sector, which relies on sodium cyanide as a critical component for mineral extraction processes. The government has structured the initiative with strategic and technical incentives to ensure ongoing support for the mining industry, which in turn strengthens Egypt’s industrial diversification and capacity for sustainable growth. This alignment with the mining industry highlights Egypt’s dedication to expanding its industrial base, driving innovation in specialized manufacturing, and reinforcing its position as a regional manufacturing powerhouse.