Team Blitz India
The United Arab Emirates (UAE) and Egypt signed the contract for development of the Ras El Hikma peninsula west of Alexandria on February 23. The deal entails $150 billion in investments over the project’s development period, with approximately $35 billion earmarked as direct investments for Egypt within the next two months.
Egypt’s Prime Minister Mostafa Madbouly, underscoring the historic nature of the investment, remarked that it is the largest direct investment deal in Egypt’s history, particularly geared towards the advancement of the Ras El Hikma new city project along the North Coast. The project extends beyond tourist resorts, focusing instead on the creation of integrated urban communities along the North Coast.
Of the $35 billion, the first instalment of $15 billion, includes $10 billion in liquidity from abroad and $5 billion from UAE deposits at the Central Bank of Egypt, is to be disbursed within a week.
The second instalment, totalling $20 billion, comprises $14 billion in liquidity from abroad and an additional $6 billion from UAE deposits at the Central Bank of Egypt.
Madbouly said the Egypt’s external debt will decrease by $11 billion, with funds transferred from an Emirati deposit in the central bank to an investment in the Ras El Hikma project. Highlighting the investment deal as a significant step in steering the Egyptian economy in the right direction, Madbouly stressed Egypt’s eagerness to attract FDI, projecting an annual tourist influx of up to 8 million visitors to the Ras El Hikma region.
Egypt is poised to garner approximately 35 per cent of profits from the Ras El Hikma city project, which spans an expansive 170 million square metres and encompasses various sectors including recreational, service, industrial, and residential projects, along with a free zone, central financial and business district, marina, and international airport.
Madbouly emphasised that these investments will not only create numerous job opportunities but also engender myriad benefits for Egypt through the participation of local companies and factories in the projects.
