CAIRO: Egypt plans to award deals next year to build 21 water desalination plants in the first $3 billion phase of a program that will draw on cheap renewable energy, the CEO of the country’s sovereign fund said on Thursday.
Egypt, which recently hosted the COP27 UN climate talks and is trying to boost lagging investment in renewables, also aims to start production at a series of proposed green hydrogen projects in 2025-2026, Ayman Soliman told the Reuters NEXT conference.
Egypt depends almost entirely on the Nile for fresh water, and faces rising water scarcity for its population of 104 million. The desalination program aims to generate 3.3 million cubic meters of water daily in the first phase, and eventually reach 8.8 million cubic meters daily at a cost of $8 billion.
There had been expressions of interest from more than 200 developers from at least 35 countries for the first phase, Soliman said.
The Sovereign Fund was set up in 2018 with a goal of attracting private investment in state-owned assets through partnerships and co-investments.
It is currently focused on getting private consortia to develop brownfield infrastructure, and private equity to develop state-owned enterprises ahead of public listings.
Privatization plans in Egypt have been repeatedly pushed back, with the government blaming delays on economic shocks including the COVID-19 pandemic and the war in Ukraine as well as on legal obstacles. The plans have also met resistance from advocates of continued state control, analysts say.
’ECONOMIC CONSTITUTION’
Soliman said a state ownership policy that is meant to map out which parts of the economy are open to private investment would serve as the government’s “economic constitution” going forward, and as a platform to crowd in private investment despite the rising cost of capital.
“We as a fund are very sharply focused on trying to find those champions to scale up, be it in agriculture be it in tourism, be it in infrastructure, or be it in banking financial services,” he said.
At the climate talks in Sharm el-Sheikh, the government converted into framework agreements nine of 15 memoranda of understanding (MoU) for green hydrogen projects concentrated in the Suez Canal Economic Zone (SCZONE) that would produce millions of tons of hydrogen and ammonia.
At least another three or four MoUs were close to being converted, and more MoUs were planned, with cheap renewable costs and the scale of the potential fuel export market toward Europe making Egypt competitive, Soliman said.
Framework agreements give developers access to specific locations to allow them to plan production.
“This is not a competition. We are creating a pipeline or a blueprint for that process, aiming to start production in 2025-26 and all the developers are working backwards from there,” Soliman said.
So-called green or clean hydrogen is produced using electrolyzers powered by renewable energy to split water from oxygen. It is seen as a potential future power source that could reduce emissions, though to date it is largely limited to experimental projects. Analysts say challenges facing its growth include high costs and energy inputs, as well as safety concerns.
Egypt’s projects would have desalinated water built in, and quantities required would be negligible compared to those produced under the national desalination scheme, according to the Sovereign Fund.
Egypt to build 21 desalination plants in phase 1 of scheme -sovereign fund
https://arab.news/b9rq3
Egypt to build 21 desalination plants in phase 1 of scheme -sovereign fund
- Egypt also aims to start production at a series of proposed green hydrogen projects in 2025-2026
- The Sovereign Fund was set up in 2018 with a goal of attracting private investment in state-owned assets through partnerships and co-investments
First EU–Saudi roundtable on critical raw materials reflects shared policy commitment
RIYADH: The EU–Saudi Arabia Business and Investment Dialogue on Advancing Critical Raw Materials Value Chains, held in Riyadh as part of the Future Minerals Forum, brought together senior policymakers, industry leaders, and investors to advance strategic cooperation across critical raw materials value chains.
Organized under a Team Europe approach by the EU–GCC Cooperation on Green Transition Project, in coordination with the EU Delegation to Saudi Arabia, the European Chamber of Commerce in the Kingdom and in close cooperation with FMF, the dialogue provided a high-level platform to explore European actions under the EU Critical Raw Materials Act and ResourceEU alongside the Kingdom’s aspirations for minerals, industrial, and investment priorities.
This is in line with Saudi Vision 2030 and broader regional ambitions across the GCC, MENA, and Africa.
ResourceEU is the EU’s new strategic action plan, launched in late 2025, to secure a reliable supply of critical raw materials like lithium, rare earths, and cobalt, reducing dependency on single suppliers, such as China, by boosting domestic extraction, processing, recycling, stockpiling, and strategic partnerships with resource-rich nations.
The first ever EU–Saudi roundtable on critical raw materials was opened by the bloc’s Ambassador to the Kingdom, Christophe Farnaud, together with Saudi Deputy Minister for Mining Development Turki Al-Babtain, turning policy alignment into concrete cooperation.
Farnaud underlined the central role of international cooperation in the implementation of the EU’s critical raw materials policy framework.
“As the European Union advances the implementation of its Critical Raw Materials policy, international cooperation is indispensable to building secure, diversified, and sustainable value chains. Saudi Arabia is a key partner in this effort. This dialogue reflects our shared commitment to translate policy alignment into concrete business and investment cooperation that supports the green and digital transitions,” said the ambassador.
Discussions focused on strengthening resilient, diversified, and responsible CRM supply chains that are essential to the green and digital transitions.
Participants explored concrete opportunities for EU–Saudi cooperation across the full value chain, including exploration, mining, and processing and refining, as well as recycling, downstream manufacturing, and the mobilization of private investment and sustainable finance, underpinned by high environmental, social, and governance standards.
From the Saudi side, the dialogue was framed as a key contribution to the Kingdom’s industrial transformation and long-term economic diversification agenda under Vision 2030, with a strong focus on responsible resource development and global market integration.
“Developing globally competitive mineral hubs and sustainable value chains is a central pillar of Saudi Vision 2030 and the Kingdom’s industrial transformation. Our engagement with the European Union through this dialogue to strengthen upstream and downstream integration, attract high-quality investment, and advance responsible mining and processing. Enhanced cooperation with the EU, capitalizing on the demand dynamics of the EU Critical Raw Materials Act, will be key to delivering long-term value for both sides,” said Al-Babtain.
Valere Moutarlier, deputy director-general for European industry decarbonization, and directorate-general for the internal market, industry, entrepreneurship and SMEs at European Commission, said the EU Critical Raw Materials Act and ResourceEU provided a clear framework to strengthen Europe’s resilience while deepening its cooperation with international partners.
“Cooperation with Saudi Arabia is essential to advancing secure, sustainable, and diversified critical raw materials value chains. Dialogues such as this play a key role in translating policy ambitions into concrete industrial and investment cooperation,” she added.
