Egypt administrative capital announces fourth phase expansion: Chairman

Ahram Online , Sunday 7 Jan 2024

The Administrative Capital for Urban Development (ACUD), the operator of the New Administrative Capital (NAC), announced the addition of a fourth phase to the ongoing development plan, Chairman Khaled Abbas stated on Thursday.

Egypt s New Administrative Capital.
Egypt s New Administrative Capital.

 

The phases are being developed with the assistance of international consultancies, following a global tender that attracted some of the world's largest engineering consulting firms, Abbas added to the press.

Abbas stated that ACUD is currently in the process of planning the second, third, and fourth phases, which were presented to these consulting offices, adding that the winning office will be selected to develop the plan during the first quarter of 2024.

Once the general plan for the new stages is completed, ACUD will begin construction work immediately, with an anticipated completion date in the second half of 2024, he noted.

Abbas emphasized that the work of ACUD is ongoing, providing services to both visitors and residents of the capital.

“To date, around 100,000 housing units have been completed, with 1,200 families having already moved in,” Abbas indicated.

Additionally, several major banks and businesses are scheduled to relocate their headquarters to the new capital by Q1 of this year.

The first phase of the capital development plan covers an area of 40,000 feddans, including 10 residential areas, with subsequent phases estimated to span approximately 190,000 feddans.

Work on this phase was more than 70 percent complete in August 2023, according to a statement at the time by ACUD.

Once completed, the megacity is expected to house 6.5 million residents.

A profitable enterprise
 

ACUD has recorded profits of EGP 10 billion during the first half of 2023, Abbas said, expecting a further surge of 15-35 percent in profits for the year.

In 2022, ACUD achieved pre-tax profits of EGP 19.8 billion, and in 2023, the company targets projected profits of EGP 26 billion, surpassing the EGP 20 billion recorded in the previous year.

Since its inception in 2015, the NAC has generated numerous investment opportunities.

In a recent announcement, Abbas revealed ACUD's plan to offer up to 10 percent of its shares on the Egyptian Exchange in the first half of 2024, which aligns with the Egyptian government's broader strategy to offer stakes in 35 state-owned companies to strategic investors throughout 2024.

Established in 2016, ACUD currently boasts a total capitalization of EGP 204 billion ($6.6 billion).

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