Kuwaiti real estate developer, Al-Manshar, signed a preliminary deal to develop commercial, residential and entertainment projects at a cost of LE2 billion, state-run news agency MENA reported on Wednesday.
“The board of directors saw a need to take advantage of the Egyptian government’s keenness to attract investments, particularly those from gulf countries,” Nasser Megawer, the company CEO told MENA.
Egypt received a total of $10.6 billion in aid from Kuwait, UAE and Saudi Arabia following the ouster of former president Mohamed Morsi in July 2013.
Kuwaiti government approved a $1 billion grant to Egypt in November, according to Egypt's finance minister Hany Qadry.
The project, which is the first by the company in Egypt, will be implemented on an area of 117,000 square metres in the East Cairo suburb of El-Sheikh Zayed.
Egypt's government has set a growth target of 3.5 percent for the current fiscal year, a goal that requires at least LE260 billion in investments according to the minister of investments Ashraf Salman.
The government has budgeted only LE58 billion in investments for the current fiscal year, relying mainly on the private sector to achieve planned growth.
The expected release of investment laws meant to encourage investors was another factor influencing the company’s decision to invest in Egypt, Megawer said.
The investments minister is currently reforming investment legislation to encourage investments in the country. The new laws are expected to be issued ahead of a planned investment summit in 2015.