20 April 2024 09:06 PM

PM: "Ras El Hikma" project biggest investment deal in Egypt's history

Saturday، 24 February 2024 - 10:57 AM

Prime Minister Mostafa Madbouli said the development project of Ras El Hikma city on the North Coast is the biggest foreign direct investment deal in Egypt's history.

In a press conference held at the New Administrative Capital on Friday 23/02/2024, the premier added the project comes within the framework of Egypt's 2052 Urban Development Plan.

Madbouli stated the 2052 Urban Development Plan includes developing the cities of El Alamein, Ras El Hikma, El Negila, Sidi Barrani, Jarjoub, Matrouh and Sallum to accommodate millions of people and provide millions of job opportunities for Egyptian youth.

The Prime Minister explained the project is implemented as per the same mechanism pursued by the New Urban Communities Authority with all real-estate developers and the private sector.

He noted the project, carried out in partnership with the UAE, is aimed at developing Ras El Hikma city, which extends on an area of 170 million square meters.

The Prime Minister went on to say that the Abu Dhabi Developmental Holding Company will set up Ras El Hikma company as a joint stock company in which Egypt will be a partner.

The project will encompass residential districts, prestigious international hotels, tourist resorts, expansive entertainment venues, and service facilities such as hospitals, schools and universities, Madbouli said.

It will also include administrative and service buildings, a free economic zone for information technology industries and logistics hubs, and a central business district that would house global companies, the prime minister added.

The project will comprise as well a large marina for tourist yachts and ships, Madbouli said.

"We expect the new city to attract 8 million tourists to Egypt upon completion," he noted. 

The Prime Minister pointed out that the State will get 35% of the project's profits.

He said the UAE side will invest nearly USD 150 billion throughout all phases of the project, adding that USD 35 billion will be injected into the national economy within the next two months, which is the largest sum in foreign direct investment in the history of the country.

He stated this large sum will contribute to solving the economic crisis facing the country and to boosting the business chances of Egyptian real estate companies, logistics companies and factories that will be tasked with providing raw materials and construction materials for this big project.

Madbouli stressed that the State is committed to compensating, in cash and in kind, residents of Matrouh living on the land allocated for the Ras El Hikma project.

All residents of this area have been counted and all buildings and agricultural lots have been sorted, the premier said, noting that new residential complexes along the coast will be established to relocate the citizens.

This way the residents will continue to live in the same area they have been living in, Madbouli said, adding they will also benefit from the development process in the area.

Egypt is completely open to foreign direct investments and welcomes ventures that would help achieve integrated development on its lands, create jobs for youth and give the Egyptian economy a shot in the arm, the prime minister told reporters.

Madbouli thanked the UAE for this partnership, which sends a message of confidence in Egypt and the promising opportunities it offers.

The Prime Minister said that the success of global economies is judged by their ability to lure foreign direct investment through asset purchases.

He said the State earnestly seeks to enhance the partnership with the private sector and attract further foreign direct investments to provide hard currency and bridge the gap between revenues and expenditures.

PM Madbouli underlined the US dollar liquidity provided through this project will assist in stabilizing the foreign exchange market and curbing high inflation, in addition to strengthening the country’s position on the world tourism map.

He added the State made a quantum leap in improving the investment climate in the past two years, citing the introduction of several legislative amendments and a wide package of incentives for supporting the industrial sector.

MENA

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