Launching Ras Al-Hekma project

Gamal Essam El-Din , Wednesday 9 Oct 2024

The start of construction of Ras Al-Hekma project reflects the strength of ties between Egypt and the UAE.

Bin Zayed and Al-Sisi
Bin Zayed and Al-Sisi

 

On 4 October, President Abdel-Fattah Al-Sisi and his Emirati counterpart Sheikh Mohamed bin Zayed attended the launch of the construction of the Ras Al-Hekma development project on Egypt’s Mediterranean coast. Prime Minister Mustafa Madbouli was also present, alongside senior officials and businessmen from Egypt and the UAE.

The Ras Al-Hekma city project, 350 km northwest of Cairo, covers 170 million square metres of land and is expected to catalyse development of Egypt’s Northern Coast, particularly the governorate of Marsa Matrouh. It will bring $35 billion in foreign direct investment to Egypt.

The launch ceremony was welcomed by political and economic commentators who said it will contribute to Egypt’s development and further cement ties between Cairo and Abu Dhabi.

President Al-Sisi expressed his gratitude to everyone involved in designing the project, from both the Egyptian and Emirati sides, while Sheikh Mohamed bin Zayed emphasised the project’s importance in strengthening economic and investment relations between Egypt and the UAE. Ras Al-Hekma is, he said, a model for constructive development projects between the two countries.

Emirati Minister of Cabinet Affairs Mohamed Al-Gergawi noted that the presence of the presidents of Egypt and the UAE at the launch reflected the depth of relations between the two countries. “The Ras Al-Hekma project is a new milestone in relations between Egypt and the UAE and will help cement the strong political and economic ties between our two countries,” he said.

Political relations between Egypt and the UAE strengthened following the ouster of Mohamed Morsi in 2013. According to Ahmed Abaza, head of parliament’s Arab Affairs Committee, it was the UAE’s opposition to radical Islamist movements like the Muslim Brotherhood that led it to stand behind Egypt following Morsi’s removal from office.

“When President Abdel-Fattah Al-Sisi came to office in 2014, relations between the two countries reached new political and economic heights,” said Abaza. There was close coordination between Cairo and Abu Dhabi on developments in Palestine, Libya, Yemen, Syria and Lebanon, and “on combating terrorism and extremism”.

MP Ayman Mehasseb, head of the National Dialogue’s investment committee, told Al-Ahram Weekly that Ras Al-Hekma will boost the long-term partnership between Egypt and the UAE and open the way for other giant development and investment projects.

“The Ras Al-Hekma deal also sends a message to the outside world that Egypt is an oasis of stability in a war-stricken region that is attracting billions in foreign investments,” he said.

MP Hassan Al-Meer, a member of parliament’s Economic Committee, argues that the strong personal relationship between the presidents of the two countries is a major factor in the rapid growth of political and economic relations between Egypt and the UAE and that the “iconic Ras Al-Hekma project” is merely “the first in the pipeline of Emirati investments that will serve the interests of the two countries”.

Al-Sisi and Bin Zayed watched a presentation showcasing the project’s economic, investment, real estate, tourism, and environmental significance and were briefed on the developmental and economic opportunities it offers.

They attended the signing of contracts by Egyptian and Emirati companies and the launch of a partnership between international, Egyptian and Emirati companies that aims to promote innovation in the electric vehicle sector across the Middle East and North Africa.

The Ras Al-Hekma project is expected to generate investments of up to $ 110 billion by 2045, make an annual contribution to GDP of $ 25 billion and create around 750,000 jobs.

Upon completion, the development project will be home to two million people and feature more than 40 green spaces, making it the greenest megaproject in the Arab world.

Ras Al-Hekma is just a four-hour flight away from 400 million potential tourists in Europe. Building tourism infrastructure will be prioritised during the first phase of the project, which includes an international airport and high-speed trains. The project master plan encompasses residential areas, office spaces, hospitality venues, retail, leisure and recreation facilities.

During the event, the Abu Dhabi-based investment and holding company ADQ appointed Modon Holding PSC as lead developer on the Ras Al-Hekma megaproject.

In addition to lead developer, with overall responsibility for the 170 million square metre footprint of the new city, Modon Holding will itself develop Ras Al-Hekma’s first phase, covering 50 million square metres. The remaining land (120 million square metres) will be developed in partnership with leading Egyptian, UAE and international construction companies, overseen by the ADQ subsidiary Ras Al-Hekma Urban Development Project Company and Modon Holding.


* A version of this article appears in print in the 10 October, 2024 edition of Al-Ahram Weekly

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