The Arab Pharmaceutical Raw Materials Company (ARAB API) has officially unveiled plans to establish Egypt’s first multi-purpose factory dedicated to the production of active pharmaceutical ingredients (APIs). The project—valued at $120 million—marks a strategic milestone in Egypt’s drive to localize pharmaceutical raw material manufacturing and position itself as a regional hub for the industry.
The announcement came during a community consultation session hosted at the headquarters of the General Authority of the Suez Canal Economic Zone (SCZone), where the project’s environmental and social impact assessment was presented. The session gathered stakeholders from government, industry, academia, banks, and local community representatives.
ARAB API is the result of a joint alliance between EIPICO Pharmaceuticals, ACDIMA, and the General Authority of the Suez Canal Economic Zone, represented by the Economic Zone Investment Company.
Dr. Ahmed Kilani, Chairman of ARAB API, highlighted that the initiative will play a pivotal role in reducing Egypt’s reliance on imported APIs, strengthening local production, and ensuring long-term supply stability, particularly during global disruptions such as pandemics, wars, and natural disasters.
“This project is a transformative step for Egypt’s pharmaceutical industry and a direct implementation of national policy to deepen local manufacturing,” Dr. Kilani said. “It will not only enhance self-sufficiency but also open new horizons for exports across Africa and beyond.”
The facility will be constructed on a 96,828-square-meter plot within the industrial zone in Ain Sokhna, chosen for its infrastructure and logistical advantages. Once operational, the factory will be capable of producing 54 types of active ingredients, with an annual output of 700–750 tons of APIs and 500 tons of intermediates.
The project is expected to generate a significant number of direct and indirect job opportunities, creating a ripple effect across related industries and services.
During the session, environmental consultant Dr. Enas Abu Talib presented the findings of the environmental and social impact study, which confirmed the project’s compliance with international safety, health, and environmental standards. ARAB API pledged to integrate sustainability and environmental responsibility into all aspects of its operations, from design and construction to full-scale production.
ARAB API, established in January 2025, has already completed feasibility studies with leading international consultancies. Agreements have been signed for engineering design technology transfer with India’s DOSHI and for project engineering consultancy with Cosmos.
The initiative has also drawn strong backing from local and regional financial institutions, underlining investor confidence in Egypt’s pharmaceutical sector.
The factory’s production is expected to cover a substantial portion of Egypt’s domestic demand for raw materials while enabling surplus exports to regional and international markets. This will support Egypt’s broader healthcare strategy, reduce the pharmaceutical import bill, and contribute to national economic resilience.
