Egyptian Prime Minister Mostafa Madbouly chaired a high-level meeting in Cairo on Sunday to review progress on the Ras El Hekma development, a flagship Egypt-UAE mega-project on the country’s northwestern Mediterranean coast. Cabinet spokesman Mohamed El Homsany said the review covered compensation payments to eligible residents, perimeter fencing of parcels already handed to the master developer, and the status of the first phase.
The Sunday meeting came five days after Madbouly met Modon Holding chairman Jassem Mohamed Bu Ataba Al Zaabi on July 7, at which the UAE side said construction was proceeding on schedule. Ras El Hekma is designed to host two million people on a 170 million square meter footprint and is central to Egypt’s strategy to draw foreign capital and expand high-end tourism infrastructure along the North Coast.
What the Sunday Meeting Reviewed
Madbouly gathered senior government figures on Sunday to reassess implementation across the project, according to a Sada Elbalad report. The meeting brought together the ministers of transport and housing, representatives of the Armed Forces Engineering Authority, and other officials overseeing delivery. The Governor of Matrouh and the province’s security director joined by video conference.
Cabinet spokesman El Homsany said the review examined three operational tracks. Officials assessed the pace of compensation payments to eligible residents within the project’s development zone. They reviewed progress on perimeter fencing for land parcels already handed over to Modon Holding, the master developer. They also examined the implementation status of the project’s various phases, with particular focus on the first phase of hospitality, commercial, and entertainment developments designed to anchor a world-class tourism destination. Madbouly told attendees the government remains committed to keeping the project moving in line with its established implementation schedule, the report said.
The $35 Billion Deal Behind the Build
Ras El Hekma is built on a February 2024 partnership between Egypt and an ADQ-led consortium from Abu Dhabi. ADQ, an Abu Dhabi-based investment and holding company, said at the time that it would invest $35 billion in Egypt through the project. Of that sum, $24 billion covered the acquisition of development rights for Ras El-Hekma, while the remaining $11 billion converted existing UAE deposits at the Egyptian central bank into investment in prime projects across the country. The Egyptian government retained a 35 percent stake in the Ras El-Hekma development as part of the agreement.
The transaction was framed as Egypt’s largest single foreign-investment commitment and was credited at the time with shoring up market confidence in the country. Critics have questioned the use of central-bank deposits to finance foreign investment on Egyptian soil.
The components of the partnership shape everything Madbouly reviewed on Sunday:
| Component | Figure or detail |
|---|---|
| Total Egypt-UAE commitment | $35 billion |
| Development rights | $24 billion |
| Converted UAE central-bank deposits | $11 billion |
| Egyptian government stake | 35 percent |
| Site footprint | 170 million square meters |
| Master developer | Modon Holding (appointed October 2024) |
Modon Holding Takes the Master-Developer Role
ADQ appointed Modon Holding PSC as master developer on 4 October 2024 in Matrouh, in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and Egyptian President Abdel Fattah El-Sisi, Modon said. Modon chairman Al Zaabi has since emerged as the public face of the UAE side in progress meetings with Madbouly.
Modon’s responsibilities cover the full 170 million square meter footprint, with the company also serving as developer of the first phase spanning 50 million square meters. The remaining 120 million square meters will be developed in partnership with Egyptian, Emirati, and international developers under the oversight of the ADQ subsidiary Ras El Hekma Urban Development Project Company. Modon Holding’s portfolio includes Reem Island and Al Hadeeriyat Island in Abu Dhabi, and the company recorded real estate sales exceeding AED 13 billion in 2024. In Egypt, Modon is partnered with Talaat Moustafa Group through joint ownership in TMG Hospitality, according to ADQ.
At the July 7 meeting, Al Zaabi reviewed progress achieved in development works and noted that implementation was proceeding according to schedule, according to Egypt’s State Information Service. Both sides agreed at that meeting to conduct a field visit to the Ras El Hekma development site “in the coming period” to review construction on the ground, the read-out said.
Compensation on the Ground
Compensation to local residents has been a recurring topic of progress reviews since the deal’s signing. By October 2024, the Egyptian government had paid out more than EGP 6 billion in compensation as part of the Ras El-Hekma development project, Amwal Al Ghad reported at the time.
Sunday’s meeting returned to that file. El Homsany confirmed the review covered compensation to eligible residents within the project’s development zone. Officials also tracked progress on perimeter fencing for parcels already transferred to the master developer.
The first phase of resettlement, branded Shams El Hikma, has moved through infrastructure work on water, sewage, and road networks, with officials describing implementation as having reached advanced stages. Independent reporting has documented concerns among local Bedouin communities over land ownership and the replacement value of compensation packages, a question the Sunday meeting did not address publicly.
Where the project stands in hard figures:
- $35 billion: Egypt-UAE deal value
- 170 million sqm: total site footprint
- 50 million sqm: first-phase development area
- EGP 6 billion: compensation paid out by October 2024
- 2 million: planned residents at completion
The 2045 Horizon
Modon and ADQ have laid out a multi-decade build. Cumulative investments in Ras El Hekma are anticipated to reach $110 billion by 2045, Modon said at the master-developer appointment. Annual GDP contribution is projected at around $25 billion, with roughly 750,000 jobs created directly and indirectly.
The site sits within a four-hour flight of more than 400 million outbound tourists, Modon said, making tourism infrastructure a priority for the early phases. Plans include an international airport, high-speed rail connectivity, an international marina, and a free zone. The development also envisages more than 40 kilometres of green spines, which Modon describes as the greenest megaproject in the region.
The project is designed to support high-growth industries including business services, financial services, light manufacturing, and technology, according to Modon. The aim, in Modon’s framing, is a fully functional, smart, sustainable, and inclusive urban community on the Mediterranean coast.
Ras El Hekma is destined to become a regional crown jewel in a country already famed for its rich and diverse attractions.
The first phase, named Wadi Yemm, covers 2,000 feddans and was designed in collaboration with international architecture firms, Modon marketing material says. Phase-one hospitality, commercial, and entertainment facilities are scheduled to begin operations at their planned dates, Al Zaabi told Madbouly on July 7. The Egypt-UAE partnership targets a coastal city that, in Al Zaabi’s words to Madbouly on July 7, will see construction continuing according to schedule, with both sides due to inspect the site on the ground in the coming period.
Frequently Asked Questions
What is the Ras El Hekma project?
Ras El Hekma is a master-planned coastal city under construction on Egypt’s northwestern Mediterranean coast, roughly 350 kilometers northwest of Cairo. It is being built under a 2024 Egypt-UAE partnership led by Abu Dhabi-based ADQ and delivered through Modon Holding as master developer.
How much is Egypt investing with the UAE in Ras El Hekma?
ADQ committed $35 billion to the project, structured as $24 billion for development rights and an $11 billion conversion of UAE central-bank deposits for prime Egyptian projects. The Egyptian government retained a 35 percent stake in the development.
Who is the master developer for Ras El Hekma?
Modon Holding PSC was appointed master developer on 4 October 2024 in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and Egyptian President Abdel Fattah El-Sisi. Modon also acts as developer for the first 50 million square meter phase, with the remaining 120 million square meters developed in partnership with other developers.
How large is Ras El Hekma?
The site spans 170 million square meters, with the first phase covering 50 million square meters. Upon completion, the development is designed to host two million people, supported by an international airport, high-speed rail, an international marina, and a free zone.
What is the timeline for the first phase?
The first phase, named Wadi Yemm, covers 2,000 feddans. Modon chairman Jassem Al Zaabi told PM Madbouly on July 7 that hospitality, commercial, and entertainment facilities in the first phase are scheduled to begin operations at planned dates, with construction proceeding according to schedule.
