Egypt Receives Second Tranche of $35 Billion Investment for Ras El-Hekma

The Egyptian government announced that it received USD 14 billion (EGP 655 billion) as the second installment of funding from the USD 35 billion (EGP 1 trillion) Ras El-Hekma development agreement, according to a cabinet statement on Wednesday, 15 May.

Prime Minister Mostafa Madbouly also mentioned that the government has  started working with the UAE to convert a USD 6 billion (EGP 281 billion) deposit into Egyptian pounds, as agreed upon in the city’s development partnership.

In the same vein, he noted a growing confidence in a rise in remittances due to Egyptians abroad. Additionally, there has been an increase in dollar transfers to banks and exchange offices due to a decline in the parallel market.

In early May, President Abdel Fattah al-Sisi designated approximately 1785 acres (7.5 million square meters) of state-owned land to the Egyptian Ministry of Civil Aviation for the construction of Ras El-Hekma International Airport.

The Ras El-Hekma project marks the largest direct investment deal ever secured by Egypt. It brings together the Ministry of Housing, Utilities, and Urban Communities (MoHUUC), acting through the New Urban Communities Authority, with the prominent Emirati holding company, Abu Dhabi Developmental Holding Company (ADQ).

The multi-billion dollar project will create a major urban, business, and tourism center.

The UAE is set to invest close to USD 150 billion (EGP 7.158 trillion) across all project phases. In late February and early March, the government secured the first installment of the deal, totaling USD 15 billion (EGP 702 billion).