CAIRO - 23 February 2024: On Friday, Egypt signed a deal with the Abu Dhabi Developmental Holding Company PJSC (ADQ) - the sovereign wealth fund of the Emirate of Abu Dhabi - to develop the Ras Al-Hikma city, with total investments of $35 billion, according to statements by Prime Minister Mostafa Madbouly.
The government expects the project to attract investments of up to $150 billion during its development, helping to provide millions of job opportunities and inject liquidity into the Egyptian economy.
Under the deal, Cairo will receive $35 billion within two months, including an $11 billion Emirati deposit in the Egyptian Central Bank, in addition to $24 billion to be injected by the United Arab Emirates.
Egypt will receive 35 percent of the profits from the Ras Al-Hikma project, and the state will be committed to cash and in-kind compensation for the residents located on the city's lands.
Egypt's external debt will decrease by $11 billion as a result of converting the Emirati deposit in the central bank into an investment in the project.
This deal comes at a time when Egypt is facing difficulties due to a shortage of foreign currency and the rise in the dollar's price in the parallel market, with increased speculation by traders, impacting commodity prices and inflation rates.
"We are very close to completing our agreement with the International Monetary Fund (IMF)," Madbouly said, and the Fund's director had earlier stated that it was nearing reaching the core pillars of the agreement with Egypt.
A statement from the Emirati Holding Company revealed that it would acquire development rights for the Ras Al-Hikma project for $24 billion with the aim of developing the region into one of the largest new city development projects through a special coalition.
As part of this investment, ADQ will transfer $11 billion from the deposits to be used for investment in key projects throughout Egypt to support its economic growth and prosperity.
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