Egypt secures $391 million UAE-backed investment for Gulf of Suez grid

Egypt has secured a EGP 20 billion ($$391 million) investment from an Egyptian-Emirati alliance to build a high-voltage transmission line linking renewable energy projects in the Gulf of Suez to the Hawamdiya substation south of Giza, reinforcing the country’s push to become a regional clean energy hub.

The project will construct a 500-kilovolt transmission line designed to transport electricity generated by large-scale wind and solar farms across the Gulf of Suez. Construction is expected to take about 30 months.

The investment is led by Intelligent Globe Construction Group, an Egypt- and UAE-based consortium, highlighting growing Gulf support for Egypt’s expanding energy infrastructure.

Supporting Egypt’s clean energy strategy

The new transmission line forms part of Egypt’s long-term strategy to modernize its electricity network as renewable generation continues to grow.

Cairo aims to increase renewable energy’s share of its electricity mix to 45% by 2028, requiring significant upgrades to transmission networks capable of handling rising output from solar and wind projects.

Over the past decade, Egypt has invested approximately EGP 965 billion ($19 billion) in electricity generation, transmission and distribution infrastructure, laying the foundation for one of Africa’s largest energy transformation programs.

Gulf of Suez becomes renewable energy hub

The Gulf of Suez has emerged as one of the Middle East and Africa’s most important renewable energy corridors, hosting some of Egypt’s largest onshore and offshore wind farms alongside rapidly expanding solar projects.

Once completed, the transmission line will improve grid stability, unlock additional renewable energy capacity and enable more clean electricity to reach households, businesses and industrial users across the country.

The project also strengthens Egypt’s position as a strategic destination for regional infrastructure investment, with Gulf-backed financing playing an increasingly important role in accelerating the country’s energy transition.

As demand for clean electricity rises across North Africa, the latest investment underscores Egypt’s ambition to build a modern power network capable of supporting future renewable projects while enhancing energy security and long-term economic growth.