Egypt signed a contract to develop the Ras El Hekma project in Egypt in partnership with the Emirates, with investments of $150 billion during the project development period, including about $35 billion in direct foreign investment to the Egyptian state within two months.
Egyptian Prime Minister Mostafa Madbouly said, during his speech on the sidelines of the ceremony announcing the signing of the contract for the development of the city of Ras El Hekma on the northern coast, that the deal is the largest direct investment deal in the history of Egypt, and that this deal is taking place within the framework of Egyptian investment laws.
Madbouly added that the project includes developing integrated urban communities on the northern coast and not tourist resorts.
He explained that the UAE side will pump direct foreign investment to Egypt worth $35 billion within two months, to be paid in two installments, the first within a week at $15 billion (including $10 billion in liquidity from abroad in addition to waiving $5 billion of the UAE’s deposits with the Central Bank of Egypt). .
He continued: “The second installment will be paid after two months at $20 billion (including $14 billion in liquidity from abroad in addition to the waiver of $6 billion of the UAE’s deposits with the Central Bank of Egypt).”
He revealed that the volume of UAE deposits with the Central Bank of Egypt amounts to about $11 billion, which will be waived as part of the investments in the Ras El Hekma City Development Project.
The Egyptian Prime Minister stated that Egypt’s share of the profits from the Ras El Hekma city project on the northern coast is estimated at about 35%.
The Egyptian “ministers” approve the largest direct investment deal in investment partnership with major entities
The Egyptian Prime Minister stressed that the Ras El Hekma City project is “an investment partnership and not the sale of assets,” and will take place within the framework of an integrated plan to develop the northern coast with smart cities.
Eliminate the parallel market for the dollar
Madbouly expected that the project would achieve monetary stability for the country and contribute to curbing inflation and eliminating the parallel market for the dollar, adding: “Direct investments worth $35 billion will solve a large part of the current economic crisis.”
Madbouly affirmed Egypt’s commitment to compensate the people of Marsa Matrouh Governorate who are located on the land allocated for the project in cash and in kind, noting that the new city of Ras El Hekma will be built on an area of 170.8 million square meters, and will provide many job opportunities.
He stated that a joint Egyptian-Emirati company will be established to develop the project, with the Egyptian side represented by the Urban Communities Authority and the UAE Holding Company.
Establishing an international airport south of Ras El Hekma city
The Egyptian Prime Minister added that Abu Dhabi Holding Company will develop an international airport south of Ras El Hekma city, and a contract will be signed with Abu Dhabi Development Company to develop the airport.
An imminent agreement with the IMF
He added that Egypt is “a very, very, very few steps away” from agreeing with the International Monetary Fund, the World Bank, and the European Union.
Earlier in February, Hossam Heiba, CEO of the General Investment Authority, said that Egypt had chosen an investment group from the Emirates among several offers to implement a project in Ras El Hekma, 200 kilometers west of Alexandria, in an upscale tourist resort area.
Egypt and the UAE are discussing enhancing cooperation in the new economy and technology
Egypt suffers from a chronic shortage of foreign currency, which has led to constant pressure on the Egyptian pound, government spending, and local companies.
Inflation rose to record levels last summer, the debt burden is rising, and foreign currency shortages are exacerbated by the loss of revenue from the Suez Canal in the wake of Houthi attacks on shipping in the Red Sea.
