Portfolio News

Egypt's Carbon Holdings and Suez Canal Authority deal to build $11bn petchems plant

Egypt's Carbon Holdings and Suez Canal Authority deal to build $11bn petchems plant
July 02, 2018

Five million-square metre project, to be located at Suez Canal Economic Zone in Ain Sokhna, 'set to become the biggest complex in the Middle East'

Egypt’s Carbon Holdings signed a contract with the Suez Canal Authority on Saturday to build the $10.9 billion Tahrir petrochemicals project, producing raw materials needed by the country’s industrial sector.

The five million-square metre project, to be located at Suez Canal Economic Zone in Ain Sokhna, is set to become the biggest petrochemicals complex in the Middle East, according to the Egyptian Cabinet. It is expected to create 48,000 jobs.

“The project is funded by international institutions to comply with the petrochemicals strategy and represents an added value to the Egyptian industrial sector,” the Cabinet said in a statement. Egypt is embarking on new mega-projects to attract investors. The 460-square kilometre economic zone around the Suez Canal, a major source of foreign currency, is designed to transform Egypt into a regional logistics hub.

Sourcing funding for the long-delayed Tahrir project is a positive step, Robin Mills, chief executive of Qamar Energy in Dubai, told The National.

“They’ve finally got the financing together, which will have a positive impact for investments,” Mr Mills said. “The project will boost Egypt’s petrochemicals exports and, when available locally, make it cheaper than when it was imported.”

Construction on the project must begin quickly as Egypt urgently requires the products of the petrochemicals facility, said Mohab Memesh, chief executive of the Suez Canal Authority and economic zone.

While economic growth has slowed in the north African import-dependent country since the 2011 uprising drove away tourists and foreign investors, recent reforms tied to a $12 billion IMF loan are aimed at reviving growth alongside major projects such as Tahrir.

“Structural reforms are critical for the success of the programme," the IMF Managing Director Christine Lagarde said at the weekend after the fund agreed to release the latest tranche of the loan.

"The aim is to address deep-seated structural impediments to growth and job creation, and create an enabling environment for private sector development," she said.

The Tahrir project will take around three and a half years to build and will comprise 11 plants, said Basil El Baz, chief executive of Carbon Holdings.

The scheme will help Egypt to double its exports within one year of coming online, Reuters reported, citing Mr El Baz. Tahrir will have to export all its production in the first year but as output increases, local manufacturers will be encouraged to expand and foreign ones will consider setting up next to the Suez Canal.

Exporting petrochemicals from Egypt to markets such as Europe and Asia will be highly competitive, Mr Mills said.

“Europe is already a declining market and Asia is a big market that everyone is targeting but Egypt will be competing with Sabic and Adnoc, so it’s a competitive market,” he said. “The challenge is to find a market that it is competitive in.”

When completed, the scheme will be Egypt’s first naptha cracker, producing various petrochemicals used in making different industrial and consumer products.

The Cairo-based closely-held Carbon Holdings, established in 2008, already has a polypropylene plant and a mining grade ammonium nitrate plant.

The company is planning to raise up to $250 million from a dual listing on the Egyptian stock exchange and the London stock exchange by the end of the first half of 2019, according to a report by Egyptian newspaper Al Masry Al Youm. The ultimate size of the listing is yet to be decided.

Egypt’s project is the latest in the region’s petrochemicals sector which has already seen recent announcements by Abu Dhabi and Saudi Arabia.

State-owned Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco signed an agreement last week to jointly invest in a $44bn refinery on the west coast of India, the companies said on Monday.


Fraud Alert

Fraud Alert - Important alert to Gulf Capital Investors,Shareholders, the Financial Services Community and the Public

Fraudsters are engaging in a fraudulent email and website scams whereby websites and communications are targeting members of the public and potential investors (victims) by fraudulently using the identity of legitimate members of Gulf Capital's Executive team or Gulf Capital's Board of Directors to solicit investments, fake job offers and other dealings, without authority, and for a malicious purpose. Neither Gulf Capital's Chief Executive Officer nor any members of its Board of Directors or other members of its Executive team have made any offers for investment partnership, offers of employment or other dealings through these channels and the names, and identities of such individuals are being used illegally and without their consent.

Gulf Capital and its management have taken and will continue to take legal action against anyone found misusing Gulf Capital's name or the names or identities of any members of the Board of Directors of Gulf Capital or Gulf Capital's Executive team illegally or without consent for whatever reason.

Report Scams

We invite you to immediately contact fraud-detection@gulfcapital.com* if any of the following occur:

  1. You have received any unsolicited correspondence or investment advice or you think you have been contacted in relation to a possible scam (whether by telephone, email or courier) by sources fraudulently impersonating Gulf Capital's Board of Directors or any members of Gulf Capital's Executive team.
  2. You have received notice from anyone outside of Gulf Capital informing you or raising concern regarding the fact that they may have been contacted by any sources fraudulently impersonating Gulf Capital's Board of Directors or any members of Gulf Capital's Executive team.
  3. You have received any communications referencing any of Gulf Capital's Board of Directors that you consider are suspicious or which you are not sure how to respond to.
  4. You have any concerns about the authenticity of any website passing itself off as a website operated by Gulf Capital or referencing the names and identities of the Board of Directors of Gulf Capital or any of its Executive team without authority.
*Note: When forwarding suspicious e-mails to fraud-detection@gulfcapital.com:
  1. Do not modify the original subject line or contents enclosed, and do not include any personal or confidential information.
  2. Forward the full internet headers of any suspicious emails to fraud-detection@gulfcapital.com before deleting as this information willhelp Gulf Capital to track the true origin of the correspondence. The internet headers can be found through your e-mail system from within the e-mail. For example, in Microsoft Outlook, you can find the internet headers by opening the e-mail, then choosing "View" and "Options". Depending on the e-mail system that you use, the process for locating the internet headers will vary. We recommend you either copy and paste the internet header and message into a new e-mail or scan the e-mail and full headers and send as a PDF attachment to ensure it is received by fraud-detection@gulfcapital.com.

Protect Yourself

  1. We recommend that you avoid getting into a conversation with any fraudsters or revealingany personal or identifying information, but you should endeavor to record thepurported name of the person and organisation along with any other information they give you (e.g., telephone number, address etc.) and then forward all such information to fraud-detection@gulfcapital.com.
  2. You should obtain independent legal and financial and professional advice before handing over any funds or entering into any agreements in relation to such solicitations.
  3. We recommend that you not respond or open any attachments or links associated with any suspicious e-mails.
Copyright آ© 2017 Gulf Capital Pvt. JSC. All rights reserved.

Illegal Use of Gulf Capital's Name

Phishing Email Alert

Gulf Capital Pvt. JSC has recently become aware of a spate of fraudulent emails purporting to offer financing from, and employment at, Gulf Capital and Gulf Capital Limited (DIFC). and misusing the official Gulf Capital logo and trade name. These emails do not originate from Gulf Capital or any of our affiliates. If you have received any such email, do not click any links in the email or provide any personal information (e.g. your bank details or copies of identity documents).

There are a number of illegal advance fee scams in operation where our name and those of our Board of Directors and Senior Management are being impersonated and abused.

The Gulf Capital name, and sometimes the names of individual employees within our firm, have been used in various fraudulent scam emails, letters and phone calls. These communications typically seek to attract a victim by suggesting that project funding or a job can be obtained by paying an upfront fee. Sometimes fake documents are sent to the victim and websites mimicking the Gulf Capital name and brand are used.

Common themes include:

  • the use of similar domain names designed to appear legitimate; examples include using phishing email accounts from domains such as: @gulfcap-es.com, @gulfcp.com, @gullfinvest.com, board members name@outlook.com, @gulfunioninvestment.com, name@gullfcapital.com
  • offers of work/visa services related to employment in the Middle East upon payment of administrative, medical and other fees;
  • offers of project financing upon payment of a fake surety bond and due diligence fees;
  • forged Board of Directors resolutions approving loans, MOUs, loan agreements claiming "100% refundable" professional service fees;
  • bogus look-alike websites;
  • fake profiles on LinkedIn and My Opportunity purporting be Directors or Management of Gulf Capital;
  • "signed" and stamped contracts purporting to be provided by us regarding project financing; and
  • use of our UAE telephone numbers by criminal impersonators.

This is not an exhaustive list of scams. New schemes designed to steal the business public's money or personal data are being invented all the time or for use in other illegal activities. Please act prudently and sensibly for your own protection and take note of our Fraud Alert on our website. The perpetrators may not always request money or personal details on initial contact, but often wait until the victim has responded.

Please note that Gulf Capital and its Management and Directors have no involvement in these or any other scams, and will vigorously prosecute any violators in tandem with the concerned authorities. Our name is being used in an unauthorized and illegal way. Note that we do not use Gmail, Hotmail, Outlook or Yahoo addresses.

We recommend you delete scam emails and do not reply to scam letters, emails, calls or faxes, and do not send money to strangers. If you need to confirm with us whether a communication is genuine, please contact us at fraud-detection@gulfcapital.com.

I have read and understood the Fraud Alert, Terms & Conditions of Use and Privacy Policy. I accept the terms and condition therein and wish to proceed to the Gulf Capital website.

تناهى إلى علم شركة جلف كابيتال أن ثمة مراسلات متنوعة تعمم عن طريق البريد الإلكتروني، ومن مواقع على شبكة الإنترنت، وعن طريق البريد العادي أو الفاكس، تدعي زيفا أنها صادرة عن شركة جلف كابيتال أو بالاشتراك معها و/أو مع موظفيها. ويراد من عمليات الاحتيال هذه، في الكثير من الحالات، الحصول على المال و/أو معلومات شخصية من الأشخاص الذين يتلقون تلك المراسلات.

وتود شركة جلف كابيتال أن تحذر عامة الجمهور من هذه الأنشطة الاحتيالية التي يزعم الاضطلاع بها باسم الشركة و/أو باسم موظفيها؛ وستقدر لفت انتباهها إلى أي مراسلات مشبوهة.

يرجى الانتباه إلى ما يلي:

  • · لا تمنح شركة جلف كابيتال أي قروض شخصية أو تمويل شخصي.
  • لا تمارس شركة جلف كابيتال أي أعمال مع اسواق العملات العالمية و السلع و المعادن