Egypt has various natural resources that are essential to its economy. Its petroleum reserves are notable, though much has been used up.
In 2005, proven oil reserves stood at 3.7 billion barrels. Natural gas is a key resource, with reserves reaching 2,209 billion cubic meters in 2023.
The Zohr field, discovered in 2015, is significant in gas production. The country also has rich mineral deposits, including phosphates, iron ore, and gold.
The Sukari mine is Egypt’s top gold producer. Agriculture flourished in the Nile Valley and Delta, ensuring food production.
Fossil fuels dominate the energy sector, with natural gas generating 84% of electricity in 2023. Egypt plans to boost renewable energy to 42% by 2030.
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Egypt’s Natural Resources And Their Locations
Here are the natural resources that you can find in Egypt, including their locations:
| Resources | Locations |
|---|---|
| Petroleum | Gulf of Suez, Western Desert |
| Natural Gas | Nile Delta, Mediterranean Sea, Western Desert |
| Iron Ore | Aswan, Al-Baḥriyyah Oasis, Quseir |
| Gold | Eastern Desert (Atalla, Eredia, Al Sid, Um Roush, Gariat, Um Tuyurl) |
| Phosphates | Isnā, Ḥamrāwayn, Safājah, Abu Tartur (Western Desert) |
| Manganese | Eastern Desert, Sinai Peninsula |
| Chromium | Eastern Desert (Barramiya, Ras Shait) |
| Uranium | Eastern Desert, Western Desert |
| Coal | Sinai Peninsula (Maghārah mines) |
| Limestone | Areas on both sides of the Nile, west of Alexandria |
| Gypsum and Anhydrite | Red Sea Coast, Gulf of Suez, Sinai (Ras Malaab) |
| Agricultural Land | Nile Valley and Nile Delta |
Egypt’s Natural Resource Discoveries
Egypt’s oil exploration started in the early 20th century, with production beginning in 1908. By the mid-1970s, major oil fields were found in the Gulf of Suez and Western Desert, which remain key to Egypt’s oil output.
The Belayim Development Lease is the largest crude oil asset, contributing significantly to the 605,722 barrels produced daily in 2024.
Other notable fields include Meleiha, Razzāq, and Abū Rudays. In December 2019, a new well in the Abu Senan area added 4,000 barrels per day.
Zohr Field, discovered in 2015 by Italian company Eni, is Egypt’s largest natural gas field and the biggest in the Mediterranean.
It holds 30 trillion cubic feet of reserves and reached 2.7 billion cubic feet per day in processing by 2019. Offshore in the Shorouk Block, it has been essential for Egypt’s energy independence.
The Nooros Field in the Nile Delta produces 32 million cubic meters daily, while the Atoll Field in the East Delta contributes 350 million cubic meters and 10,000 barrels of condensate.
By 2024, Egypt will produce 7,745 million cubic feet per day, making it Africa’s second-largest producer after Algeria. Sukari Gold Mine, operational since 2009 near Marsa Alam, is Egypt’s largest, with high-grade deposits boosting output.
Other deposits are in Atalla and Barramiya. Phosphate mining occurs at Abu Tartur, Isnā, Safājah, and Ḥamrāwayn. Iron ore reserves in Aswan and Al-Baḥriyyah Oasis support the steel industry. Coal is mined in Maghārah, while manganese is found in Sinai and the Eastern Desert.
Viability Of Egypt’s Resources
Egypt’s natural resources vary in viability due to production trends, operational challenges, and government initiatives.
Hydrocarbons are essential, but crude oil output has dropped from 920,000 barrels per day in 1995 to 662,000 in 2006, further declining to 4.288 million cubic meters by May 2024.
Mature fields in the Gulf of Suez and Western Desert are depleting, though new exploration efforts involve companies like Chevron and BP.
Egypt achieved natural gas self-sufficiency in 2018, producing 64 billion cubic meters annually, but output has since declined.
Zohr field, once a major contributor, saw a one-third reduction since 2019 due to water infiltration. Production fell 11% in 2023 compared to 2022, prompting potential LNG imports.
The government plans to boost supply with new projects like Bashrush and Nargis, set to launch between 2026 and 2028.
Gold mining has grown due to untapped reserves and private investments. The Sukari mine is still Egypt’s top producer, with more deposits available in the Eastern Desert.
Phosphate reserves, particularly in Abu Tartur and Safājah, support fertilizer production for local and global markets.
Iron ore deposits in Aswan and Al-Baḥriyyah Oasis are sufficient for industrial use but need modernization. Agriculture in the Nile Valley and Delta is still important despite population growth and water scarcity.
Export Potential Of Egypt’s Natural Resources
Egypt has strong export potential in natural gas, petroleum products, and minerals.
| Resources | Export Value/Volume | Primary Market |
|---|---|---|
| Natural Gas (LNG) | $8.4 billion (2023); 13.6 bcm (2024 peak); 8.1 bcm (2024) | Europe (Germany, Italy), Jordan |
| Petroleum Products | $2.7 billion (2003–04 fiscal year) | Regional markets |
| Gold | Increased under Vision 2030 reforms | International markets |
| Phosphates | Abu Tartur supports fertilizer exports | Asia, Europe |
1. Natural Gas
Egypt is a major exporter of liquefied natural gas (LNG). Its strategic location and advanced infrastructure have strengthened its market position. In 2023, LNG export revenues hit $8.4 billion, a 171% jump from $3.5 billion in 2022.
Export volume peaked at 13.6 billion cubic meters (bcm) in 2024, driven by Europe’s energy demand after the Russia-Ukraine conflict.
The Damietta and Idku LNG plants play a key part in exports. Agreements with Jordan and Germany have also expanded Egypt’s reach. However, by December 2024, exports fell to 8.1 bcm due to production issues and growing domestic demand.
2. Petroleum Products
Egypt’s crude oil production is declining, but petroleum product exports are still profitable. In the 2003–04 fiscal year, petroleum exports brought in $2.7 billion. The country’s refining capacity allows it to export refined products, keeping it competitive in regional markets.
3. Minerals
Egypt’s mineral sector is growing due to government reforms and increasing global demand. The Sukari gold mine is a major contributor to gold exports, which have risen under Egypt Vision 2030 reforms. Abu Tartur’s phosphate reserves support fertilizer exports, mainly to Asia and Europe.
Economic Impact Of Egypt’s Natural Resources
Egypt’s natural resources have been instrumental in its economy. They drive GDP growth, attract investments, and boost their position in global markets.
1. Impact On GDP
Oil and gas contribute 12% of the GDP, with rising LNG exports increasing revenues. The mining sector, led by gold, is expanding.
Gold exports hit $2.17 billion in the first nine months of 2024, nearly doubling from $1.11 billion in 2023. Agriculture makes up 13.2% of the GDP and employs over 32% of the workforce.
2. Employment And Investment
The oil and gas sector has signed over 230 exploration agreements since 2000, bringing in companies like Apache Oil, which has invested $2.8 billion since 1996.
The industry creates thousands of jobs in exploration, refining, and exports. Mining reforms under Egypt Vision 2030 have attracted firms like AngloGold Ashanti.
The Sukari gold mine has boosted exports and employment. Tourism benefits from Egypt’s natural heritage, with revenues expected to grow 4.9% annually through 2025.
Additionally, Egypt’s location connects Africa, Asia, and Europe, making it a key energy supplier. The Suez Canal, a major trade route, generated $9.4 billion in 2023. Modernization plans aim to establish Egypt as an LNG export hub.