Monday, 25 May 2026
SCZone lays foundation for $165m Arab API pharmaceutical facility
The Suez Canal Economic Zone (SCZone) marked a significant milestone today with the groundbreaking ceremony for the Arab API pharmaceutical raw materials manufacturing plant. The new facility, located in Al-Sokhna’s industrial zone, will cover nearly 97,000 square meters and is backed by an investment of $165 million (approximately 7.7 billion Egyptian pounds).
The event was attended by Lieutenant General Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Major General Tarek El Shazly, Governor of Suez, and Walid Gamal El-Din, Chairman of SCZone, alongside representatives from Arab API.
Walid Gamal El-Din explained that the project is a joint venture between SCZone and Arab API through SCZone’s investment arm. He described it as a strategic step towards localizing the pharmaceutical and medical industries in Egypt. The plant will operate according to international quality standards and will produce both active and inactive pharmaceutical ingredients, chemical intermediates, and additives required for pharmaceutical manufacturing. This capacity is expected to support Egypt’s domestic pharmaceutical industry, enhance self-sufficiency, and provide an export boost to regional markets.
As part of SCZone’s broader strategy, the project responds to the government's push to reduce reliance on imported medical raw materials and strengthen Egypt’s industrial base in prioritized sectors, particularly those with national health and economic significance. Gamal El-Din also noted that nearly 4 million square meters have been dedicated in the zone to vital medical and pharmaceutical projects, aimed at supporting national health security and boosting Egypt’s export competitiveness.
Dr. Ahmed Kilani, Chairman of Arab API, emphasized the crucial need for the new facility, as Egypt currently imports more than 90% of its pharmaceutical raw materials. He highlighted two main pillars of the project: the first is to deepen and not just localize the industry by developing skilled human resources to sustain quality and long-term growth; the second is to pursue global manufacturing expansion, including collaboration with Egyptian entities and partnerships with African nations in need of such industries. This, he said, would help strengthen regional supply chains and help Egypt meet the pharmaceutical needs of African markets.
The Arab API project joins a roster of leading medical and pharmaceutical initiatives in the Suez Canal Economic Zone—including GENNVAX for vaccine production, IDI for pharmaceuticals manufacturing in East Port Said, and Ateco Pharma for intravenous injection solutions. These projects reflect Egypt’s ongoing strategy to localize high-value, vital industries, strengthen national health security, and drive sustainable economic growth.