Egypt joins consortium to unlock $100 billion opportunity in clean industrial projects
Egypt has become the third country to join the Industrial Transition Accelerator (ITA) programme in the Middle East and North Africa region, following the UAE and Bahrain, in a significant push to accelerate industrial decarbonisation across the region.
The partnership, announced in Abu Dhabi, aims to fast-track critical clean industrial projects with investment opportunities exceeding $100 billion. The agreement was signed by UAE's Ministry of Industry and Advanced Technology Undersecretary Omar Suwaina Al Suwaidi and Egypt's Industrial Modernization Center Executive Director Duaa Salima.
Egypt's inclusion marks a crucial milestone for the country, which seeks to increase its industrial sector's contribution to GDP from 14% to 20% by 2030. With its strategic location, established energy infrastructure and growing renewable energy capacity, Egypt is well-positioned to become a key supplier of low-carbon industrial goods to European markets.
"The MENA region has a unique opportunity to become a world leader in sustainable industries," said Al Suwaidi. "The ITA's new partnership with Egypt marks the beginning of an exciting chapter where we can strengthen regional cooperation to advance industrial sustainability and reduce carbon emissions. The ITA, launched at COP28, works with governments and project developers to overcome barriers in decarbonising heavy-emitting sectors including aluminium, cement, chemicals, steel, aviation and shipping. These industries represent approximately one-third of global emissions.
The initiative has already identified more than 45 projects across its partnership programmes with Brazil, the UAE and Bahrain, focusing on stimulating demand for green products, developing low-emission value chains, and establishing investment risk mitigation mechanisms.
Projects supported by the ITA are expected to become operational before 2030, supporting the climate objectives of the Paris Agreement.
Egypt's participation builds upon its growing commitment to sustainability in recent years. The nation hosted the COP27 climate conference in 2022, cementing its position as a regional leader in environmental policy. Sustainability forms a cornerstone of Egypt's Vision 2030 national development strategy, with the government introducing numerous green policies to reduce emissions and promote renewable energy.
These initiatives include significant investments in solar and wind power projects, sustainable transportation, and green hydrogen production. The partnership with ITA aligns with Egypt's broader efforts to transition to a low-carbon economy whilst boosting industrial competitiveness, with targets to increase the green economy's share to 5% of GDP.
