Egypt Announces $35 Billion Deal With UAE To Buy Premium Mediterranean Area

Egypt Announces $35 Billion Deal With UAE To Buy Premium Mediterranean Area

Egypt has agreed to a $35 billion deal with the United Arab Emirates to develop the town of Ras el-Hekma town on its northwestern coast, Egyptian Prime Minister Mostafa Madbouly announced on Friday after weeks of speculations. Madbouly said at a news conference, which was attended by Egyptian and Emirati officials, that Egypt will receive an advance amount of $15bn in the coming week, and another $20bn within two months.

The deal is the largest foreign direct investment in an urban development project in the country’s modern history, the prime minister said. It is a partnership between the Egyptian government and an Emirati consortium led by ADQ, he said. News about the sale has triggered condemnation by critics of the government, who said the land is one of Egypt’s most valuable coastal locations and that it should be developed by local investors.

But Madbouly said that the Egyptian state will have a 35 percent share of the profits from this project, although it is a private investment with the majority of shares held by the UAE consortium.

He said that the area of the Ras el-Hekma project is 170 million square meters, and will include residential neighborhoods, tourist resorts, schools, universities, an industrial