Egypt receives $14 billion in 2nd batch of Ras El-Hekma deal: Cabinet

Ahram Online , Wednesday 15 May 2024

The Egyptian government said on Wednesday it has received $14 billion as the second batch of funding from the $35 billion Ras El-Hekma development deal.

File Photo: Ras El-Hekma. Al-Ahram


Procedures have started to transfer $5 billion UAE deposits at the Central Bank of Egypt (CBE) to Egypt in Egyptian pounds as per the deal, Prime Minister Mostafa Madbouly told a cabinet meeting.

Between late February and early March, the government secured $15 billion as the first batch of the game-changer deal, which allowed the country to deal with its steep foreign currency shortage.

The sum included $10 billion of fresh inflows and $5 billion transferred from UAE deposits at CBE in Egyptian pounds.

The investment deal, signed on 23 February, focuses on developing the Ras El-Hekma area on the North Coast and injecting much-needed foreign currency into the economy. 

This $35 billion investment marks the largest foreign direct investment (FDI) in the economy in Egyptian history.

The deal would allow Egypt to retain a 35 percent stake in the project.

The implementation of the project is expected to attract a total investment of $150 billion.

The project will aid Egypt in achieving its target of attracting 40-50 million tourists annually, according to government officials.

The project is anticipated to generate millions of jobs involving Egyptian contractors, real estate developers, logistics companies, and local factories.

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