Egypt to sign 'largest-ever' direct investment partnership deal' on Friday: PM Madbouly

Ahram Online , Friday 23 Feb 2024

Egyptian Prime Minister Mostafa Madbouly announced that the government will sign the "largest direct investment partnership deal" on Friday after approving the deal on Thursday.

Egyptian cabinet
Part of the Egyptian cabinet meeting on Thursday 22 February, 2024. Photo courtesy of Egyptian cabinet

 

Madbouly stated that the deal, carried out in partnership with major entities, contributes to achieving the Egyptian state's development targets, as outlined in the National Strategic Urban Development Plan.

He added that after signing the deal, the government would hold a press conference at the cabinet headquarters in the New Administrative Capital to disclose all the relevant details; he also highlighted that attracting massive foreign investments confirms the confidence of major investment entities in the Egyptian economy and its ability to overcome challenges.

Madbouly noted that the projects resulting from this deal would create hundreds of thousands of job opportunities, contribute to economic revitalization, involve various Egyptian companies and factories in the executed projects, and bring multiple benefits to the Egyptian state.

He also affirmed that this deal and others would contribute to stabilizing the foreign exchange market and improving the economic situation.

On a different note, the PM pointed out that the government is finalizing an agreement with the International Monetary Fund “IMF” and continues to empower the private sector and increase its participation in the economy according to the State Ownership Policy Document.

Meanwhile, the IMF described its recent talks with Egypt as achieving "excellent progress" on the discussions of a comprehensive policy package needed to reach a Staff Level Agreement (SLA) for the combined first and second reviews of Egypt’s economic reform program supported by the IMF.

On Thursday, IMF spokesperson Julie Kozack told a regular news briefing that the IMF staff and the Egyptian government agreed on the main elements of program changes under the combined first and second reviews of Egypt's existing $3 billion loan and that the authorities "have expressed a strong commitment" to them.

She declined, however, to discuss any details concerning the program with Egypt since the negotiations have not yet concluded. 

Ras El-Hikma project

 

In early February, Prime Minister Mostafa Madbouly announced the formation of a legal and technical committee within the cabinet to evaluate investment proposals for projects expected to generate substantial foreign currency revenues.

Among these projects is a $22 billion tourism development project at Ras El-Hikma on the North Coast.

Madbouly's announcement came after the General Authority for Investment and Free Zones (GAFI) CEO, Hossam Heiba, said the Ras El-Hikma deal “may exceed $22 billion."

Ras El-Hikma beaches stretch from Dabaa, 170 km west of Alexandria, to Matrouh, 220 km west of Alexandria.

The Ras El-Hikma project is part of Egypt's North Coast development plan; it aims to inject billions of dollars into the Central Bank of Egypt.

According to several reports, the project would include an airport, hotels, commercial centres, and residential developments.

Short link: