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Egypt’s Central Bank Already Received a Portion of Funds from Ras El Hekma: Sisi

February 29, 2024
Image Credit: ONTV/YouTube


Egyptian President Al-Sisi announced that initial funds from the UAE for the Ras El Hekma development project have been transferred to the Central Bank of Egypt, ​​during the fifth edition of the “Kaderoun Bekhtelaf” (Differently-Abled) event on Wednesday, 28 February.

This follows the recent signing of a USD 35 billion (EGP 1 trillion) agreement between Egypt and the UAE for the project. Last week, ADQ, an Emirati holding company, confirmed its investment in Ras El Hekma, securing development rights for USD 24 billion (EGP 1 trillion).

This historic project aims to transform the coastal area into a major tourist destination, economic center, and free zone.

The Ras El Hekma project, a massive undertaking along Egypt’s Mediterranean coast, is poised to attract investments exceeding USD 150 billion (EGP 4 trillion). Construction is set to begin in 2025, with the Egyptian government retaining a 35 percent stake.

Spanning over 170 million square meters, Ras El Hekma City will encompass a diverse range of facilities, including hospitals, schools, universities, administrative and service buildings, a bustling free economic zone dedicated to information technology and logistics, and a central business district attracting top global companies.

Egypt’s economy has been navigating turbulence recently, largely due to the devaluation of the Egyptian pound. The pound’s devaluation has made imports more expensive, leading to inflation that currently hovers around 20 percent. This translates to higher prices for essentials like food, fuel, and medicine, squeezing household budgets and eroding purchasing power.

On the 1st of February, the Central Bank of Egypt (CBE) took a decisive step in its fight against inflation, raising interest rates by a significant 2 percent. This marks the first such increase since August 2023.


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