Rédaction Africa Links 24 with Egypt Independent
Published on 2024-02-24 11:58:27
Egyptian Prime Minister Mostafa Madbouly recently unveiled new details about the Ras al-Hikma development project, a joint initiative between Egypt and the United Arab Emirates (UAE).
Madbouly outlined that the project will be executed in two stages. The first stage will involve Emirati investments totaling $35 billion, with the initial installment of $15 billion followed by an additional $20 billion. In the second stage, the state will receive 35 percent of the project’s profits.
The Prime Minister emphasized that the UAE is expected to inject at least $150 billion into the project over its implementation period. This substantial investment, in addition to the immediate financial component of $35 billion, will significantly boost the project’s development.
Under the financial agreement, the first $15 billion will consist of $10 billion in cash liquidity and $5 billion in a waiver of UAE deposits in the Central Bank of Egypt. The second $20 billion will be allocated as $14 billion in cash liquidity and $6 billion in deposits, resulting in an $11 billion decrease in Egypt’s external debt.
Madbouly made these announcements during a press conference held in the New Administrative Capital to unveil the groundbreaking investment deal with the UAE, titled “Egypt and UAE, a Partnership for the Development of Ras al-Hikma.”
He specified that the New Urban Communities Authority would represent the Egyptian side in the project, while the Abu Dhabi Developmental Holding Company (ADQ) would represent the UAE. The project’s scope includes the development of hotels, entertainment venues, tourist resorts, a financial and business district, and an international airport, with the goal of attracting eight million tourists.
The project aims to create a city covering over 170 million square meters or more than 40,600 acres, making it the largest of its kind in the region. The Abu Dhabi Developmental Holding Company will establish a holding company named “Ras al-Hikma” to oversee the project, in collaboration with Egyptian partners.
Madbouly highlighted that the project’s economic benefits would help curb inflation and aim to unify exchange rates, streamlining the country’s financial landscape.
Overall, the Ras al-Hikma development project is set to transform the region, attracting significant investments and creating new opportunities for economic growth and development. By partnering with the UAE, Egypt is positioning itself for a prosperous future filled with new infrastructure, tourism, and business opportunities.
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