Egypt and the United Arab Emirates (UAE) formalized a multi-billion dollar partnership agreement on Friday, aiming to establish a new urban, economic, and tourism center in Ras El Hekma, situated 450km northwest of Cairo. Prime Minister Dr. Moustafa Madbouly, speaking on the sidelines of the contract signing ceremony, revealed that the agreement, expected to draw over $150 billion in investments, was signed in Cairo between Egypt’s New Urban Communities Authority (NUCA) and the UAE’s ADQ, an Abu Dhabi-based investment and holding company.
According to Prime Minister Madbouly, the ambitious project is anticipated to inject $35 billion in foreign direct investment (FDI) into the Egyptian economy within two months. He disclosed that the UAE would provide an advance payment of $35 billion in two installments. The first installment, amounting to $15 billion, would be disbursed within a week, with $10 billion transferred in cash from the UAE and an additional $4 billion already deposited in the Central Bank of Egypt. The second installment, totaling $20 billion, would be made within two months of the initial payment, comprising $14 billion in cash transfer from the UAE and an additional $6 billion existing as a deposit in the Central Bank of Egypt.
Prime Minister Madbouly emphasized that the Egyptian government would maintain a 35% stake in the Ras El-Hekma development. Importantly, the agreement addresses Egypt’s existing debt to the UAE, totaling $11 billion. The debt will be discharged upon the full payment of the project’s advance, with the amount also deducted from Egypt’s overall foreign debt.
Given the significant economic challenges faced by Egypt due to global and regional crises, including the impact of the COVID-19 pandemic, the Russia-Ukraine conflict, and the war in Gaza, the partnership with the UAE represents a notable investment for Egypt’s economic recovery. The Egyptian government has devalued its currency three times in the past two years in response to these challenges.
In a statement sent to reporters, ADQ expressed its commitment to developing Ras El-Hekma into one of Egypt’s premier coastal destinations. The construction of mega-infrastructure and development projects, in collaboration with partners such as Modon Properties and Talaat Moustafa Group, is expected to contribute value across multiple sectors of Egypt’s vibrant economy, according to ADQ.
