Egypt could add 1.3 million tonnes of annual phosphate fertilizer production capacity through a proposed investment exceeding $1.5 billion by Fertiglobe, a move that would expand the country’s ability to process mineral resources into higher-value agricultural products.

The proposed complex in Ain Sokhna would integrate phosphoric acid production with finished fertilizer manufacturing, using phosphate rock and drawing on Egypt’s domestic ammonia supplies and existing industrial infrastructure.

Commercial operations are targeted for 2031, although the project remains subject to feasibility studies and a final investment decision.

For Egypt, the proposal offers an opportunity to strengthen its position in international fertilizer markets while capturing more value from domestic mineral resources.

For agricultural markets across Africa and the Middle East, the additional capacity could eventually widen the supply of diammonium phosphate (DAP), an important fertilizer used to support crop production.

Phosphate supplies hold the key

Securing reliable, long-term supplies of phosphate rock is one of the central requirements for the proposed development. Without sufficient raw materials, the planned production capacity cannot be commercially sustained.

Egypt’s Ministry of Petroleum and Mineral Resources has directed Fertiglobe to work with the Mineral Resources and Mining Industries Authority and other stakeholders to identify suitable deposits and assess potential supply agreements.

The company is also working with consultants to examine the project’s technical and economic viability.

Further assessments will cover production technology, energy requirements and the infrastructure needed to support an integrated industrial complex.

The proposal was discussed on October 18, 2026, during a meeting between Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, and Fertiglobe chief executive Ahmed El-Hoshy. No final investment approval has been announced.

A broader fertilizer manufacturing base

The proposed complex would build on Fertiglobe’s existing operations in Ain Sokhna, where it already produces ammonia and urea.

Adding phosphate fertilizers would broaden its product portfolio and potentially strengthen its access to agricultural customers in Africa, the Middle East and other export markets.

The investment also fits Egypt’s wider effort to expand domestic mineral processing and fertilizer manufacturing.

Rather than relying on exports of less-processed materials, the country is seeking to develop industrial capacity that can generate additional export revenue and attract foreign investment.

Fertiglobe is part of Abu Dhabi National Oil Company (ADNOC), giving the proposed development a link to the wider regional energy and industrial sector.

AdBlue production also under review

Egyptian authorities and Fertiglobe also discussed the potential localization of AdBlue production, a urea-based solution used in diesel vehicles equipped with selective catalytic reduction systems to reduce nitrogen oxide emissions.

The proposed operation could use locally produced urea, although technical and economic assessments are still required. No final commitment to the AdBlue project was announced.

Fertiglobe’s phosphate complex remains contingent on the outcome of its feasibility work, dependable raw material supplies and an investment decision.

If approved and completed, the development would represent a substantial expansion of Egypt’s downstream fertilizer manufacturing capacity, with commercial operations targeted for 2031.