Explainer: All you need to know about the landmark multibillion-dollar Egypt-UAE Ras El-Hekma deal

Ahram Online , Saturday 24 Feb 2024

Egypt signed with the UAE on Friday its largest ever direct direct investment partnership deal meant to develop the Ras El-Hekma region into the first-of-its-kind Mediterranean urban community.

Ras El-Hekma landmark
Egypt's Prime Minister Mostafa Madbouly speaking during the signing ceremony of the Ras El-Hekma project on Friday, 23 February 2024 (Photo: Egypt's Cabinet)


The coastal area will serve as an integrated hub that includes holiday destinations, financial centres, and free economic zones, all equipped with top-notch infrastructure.

The partnership is expected to bolster Egypt's economic and tourism growth potential.

Egyptian Prime Minister Mostafa Madbouly asserted that the project is a partnership with the UAE and does not involve a sale of assets, with Egypt retaining a specific percentage of the project's stake.

He said Egypt will receive an initial sum at the beginning of the project and will be entitled to a percentage of the revenues.

Here is all you need to know about the multi-billion dollar partnership:

- The landmark deal was signed by Egypt's Ministry of Housing and the UAE’s Ministry of Investment at the New Administrative Capital.

-The Ras El-Hekma coastal region is located west of Alexandria on the country’s North Coast, approximately 350 kilometres northwest of Cairo.

-The implementation of this ambitious project will be overseen by Egypt's New Urban Communities Authority and the UAE's Abu Dhabi Development Holding Company.

The project extends over an area of 40,600 feddans.

-It will encompass residential districts, prestigious international hotels, tourist resorts, a large marina, recreational venues, and service facilities, including hospitals, schools, and universities.

-The project will include administrative and service buildings, a free economic zone dedicated to information technology industries, logistics hubs, and an international airport.

-The region will also feature a central business district designed to attract global companies.

-The deal is the largest foreign direct investment in Egypt’s history.

-Under the deal, a total of $35 billion in FDI will be injected into the economy within two months.

-Egypt will receive $15 billion within a week, followed by the remaining $20 billion within two months.

-The sum includes the UAE’s $11 billion foreign deposits in the Central Bank of Egypt.

-Egypt will retain a 35 percent stake in the project.

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

-Egypt says the deal will help address its severe hard currency shortage, reduce its foreign debts as well as move forward with its plan for urban development.

-It also will aid Egypt in achieving its target of attracting 40-50 million tourists annually.

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

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