Egypt, UAE Ink Mega-Deal for New Ras El Hekma City

Egypt and Emirati investors have signed a landmark deal, worth USD 150 billion (EGP 1 trillion) to build a new city called Ras El Hekma on the country’s North Coast on Friday, 23 February.

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

Spearheaded by the New Urban Communities Authority and the Abu Dhabi Development Holding Company, the new project will be implemented west of Alexandria.

Prime Minister Mostafa Madbouly emphasized the project’s significance, highlighting its potential to attract a record-breaking USD 35 billion (EGP 1 trillion) in foreign direct investment within two months, marking a historic milestone for Egypt’s economy.

Madbouly highlighted the immediate benefits of the Ras El Hekma project, stating that the foreign direct investment will provide much-needed relief to the country’s hard currency shortage. He envisions the project transforming the North Coast and the nation’s image in the long term.

Madbouly outlined the multifaceted nature of the Ras El Hekma project, highlighting that it will include residential districts, international hotels, tourist resorts, and diverse entertainment venues.

Essential services like hospitals, schools, and universities will be readily available, ensuring a comfortable and well-rounded environment for residents and visitors alike. Additionally, the project will boast administrative and service buildings, a bustling free economic zone dedicated to information technology and logistics, and a central business district attracting top global companies.

With its comprehensive offerings, the project is anticipated to attract a staggering 8 million tourists to Egypt upon completion.

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.