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Egypt signed a significant investment joint venture agreement (the “Agreement”) with Abu Dhabi Developmental Holding Company PJSC (“ADQ”), United Arab Emirates, in the presence of the Prime Minister of Egypt and other ministers on the evening of Friday, February 23, 2024AD. The signing ceremony took place at the Egyptian Cabinet headquarters in the New Administrative Capital.
The Agreement aims to develop Ras El Hikma City, a key strategic area within Egypt's national urban development plan, located in the northwest coastal region of the Mediterranean Sea, Ras El Hikma boasts comprehensive and diverse developmental attributes, positioning it as a leading hub for tourism, investment, urban development, and a global tourism center in the Middle East and beyond.
Through the Cabinet, the Prime Minister announced the details of this investment deal, stating that the financial aspect of the agreement includes a total of $35 billion US dollars, with $24 billion dollars expected to be injected as liquidity within two months. The Emirati investment is projected to reach $150 billion dollars over the course of the project. It is also agreed that Egypt will receive 35% of the project's returns, while the Emirati side will receive 65%. This deal is considered as the largest in Egypt's history in terms of foreign direct investment, which is a strategic focus for Egypt to continually support and increase foreign currency inflows.
Ras El Hikma project is the most extensive joint venture between Egypt and the UAE, covering an expansive area of 170.8 million square meters. The project's goal is to establish Ras El Hikma as a global city, attracting approximately 8 million tourists annually to Egypt. Moreover, an international airport south of the city is planned, and the project includes the development of residential neighborhoods, international hotels and resorts, and a free zone of finance and business services.
Mohamed Hassan El Sweidi, the Managing Director and CEO of ADQ says:
“ADQ considers itself a long-term investment partner for the Arab Republic of Egypt. Our unique experience has demonstrated our ability to select quality investments that align with our investment framework and contribute to the national economy. Investing in Ras El Hikma city is part of our commitment to transforming this city into one of the most luxurious and attractive coastal destinations in Egypt and the world, this will be achieved through enabling development and vital infrastructure projects and collaborating with partners such as Modon Developments and Talaat Moustafa Group, to create opportunities across multiple sectors in the diverse Egyptian economy.”
Hossam Hibah, the Chief Executive Officer of the General Authority for Investment and Free Zones in Egypt, also disclosed details of the Ras El Hikma Project, which has been a focal point for the Egyptian business community in recent days. Hibah affirmed that a UAE consortium secured the project among various international alliances that had submitted proposals. He emphasized that the project's substantial scale would provide a penalty of opportunities for the inclusion of Egyptian companies and investors within the consortium.
Hibah mentioned that the Egyptian government considers this project as a model for large-scale ventures expected to shape the Egyptian business market in the approximate future. He also indicated that the initial investments for such a giant project could exceed $22 billion USD.
According to the reports, the deal's value is anticipated to be injected from the Emirate of Abu Dhabi, with Emaar Properties which has been designated to execute and manage the project.
These statements mark the initial announcement by an official Egyptian officer confirming the prospective presence of foreign investments in the Ras El Hikma project, following weeks of circulating related information within the Egyptian community.
Ras El Hikma City is situated at the top of the Mediterranean Coast, with its shores extending from “EL Dabaa” area along the northwestern coastal road to the city of Matrouh, 85 kilometers away. Ras El Hikma is considered pivotal to the future of tourism in Egypt due to its strategic location, with the city's development project dating back approximately 50 years.
However, the objective for Ras El Hikma City is to evolve into one of the world's premier tourist destinations, such as New Alamein City, given its proximity to the New Alamein Airport. The city is expected to attract millions of tourists from all over the world with its warm winter beaches. The new city stretches along 4 kilometers coastal strip and extends its depth to 4 kilometers.
Prepared by/
RPLF Team
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