Egypt says $35 billion Ras El Hikma project paves way for promising investments on coastlines



Fri, 23 Feb 2024 - 09:52 GMT


Fri, 23 Feb 2024 - 09:52 GMT

CAIRO – 23 February 2024: Prime Minister Mostafa Madbouly announced that the ambitious Ras El Hikma development project, backed by a record investment of $35 billion, will pave the way for future foreign direct investment (FDI) initiatives along Egypt's coastlines.

Speaking to the media after signing the contract with Emirati investors to develop the area located on the North Coast, Madbouly emphasized that Egypt's extensive coastlines on the Red Sea and the Mediterranean offer tremendous potential for similar coastal projects.

The project is expected to attract $150 billion in investments from the United Arab Emirates during its development period, as per the Egyptian government.

Madbouly highlighted that Egypt's urban development plan encompasses a range of cities and communities along the Red Sea and Mediterranean coasts, capable of hosting projects comparable to Ras El Hikma.

Moreover, the state is preparing to put forward a group of projects for global offering, all of which are high-caliber projects, he added.

Madbouly reiterated Egypt's openness to investments of all kinds and emphasized the value placed on the participation of both local and foreign investors.

Addressing foreign currency crisis

Madbouly emphasized that the Ras El Hikma project will yield significant benefits for Egypt, including resolving the dollar shortage crisis, achieving monetary stability, and consequently, mitigating inflation.

The project's substantial influx of foreign currency will play a crucial role in addressing the crisis, the prime minister stated.

Furthermore, the agreement will help eliminate the disparity in foreign currency prices within the Egyptian market, he asserted.

Madbouly projected that the project will create millions of job opportunities, effectively meeting Egypt's annual need for over one million job openings.

Moreover, he stressed that the project will position Egypt prominently on the global tourism map, establishing tourism as a sustainable source of foreign currency.

Madbouly revealed that Egypt is in the final stages of negotiations with the International Monetary Fund (IMF), the World Bank, and the European Union.

This collaboration, combined with the Ras El Hikma project, will secure sufficient foreign currency for Egypt to overcome the current crisis and embark on a new chapter for the Egyptian economy amid unprecedented global challenges, Madbouly affirmed.

Exploring Ras El Hikma development

The Ras El Hikma development project is a joint effort between the Egyptian New Urban Communities Authority and the Abu Dhabi Developmental Holding Company.

Under the project, Egypt will receive $35 billion in two installments from the UAE within two months, in addition to a 35 percent share of the project's profits throughout its implementation, according to Madbouly.

The development project envisions Ras El Hikma as a vibrant hub featuring residential districts, world-class hotels, tourist resorts, and extensive entertainment spaces, Madbouly detailed.

The project will also include the establishment of hospitals, universities, schools, administrative and service buildings, a free economic zone, and a central business district.

A large marina for tourist ships and yachts will be developed, attracting an estimated additional eight million tourists to Egypt upon completion, Madbouly said.

South of the city, an international airport will be built and developed by the Abu Dhabi Development Holding Company, with Egypt receiving a share of the airport's revenues, he added.



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