The United Arab Emirates (UAE) has signed a $35 billion deal with Egypt to develop a new city on the Ras El Hekma peninsula, on the Mediterranean coast of Egypt. The city will be a futuristic and sustainable urban hub, with residential, commercial, industrial, and tourism facilities. The deal is the largest foreign investment in Egypt’s history, and is expected to boost the country’s economy and create thousands of jobs.
The deal was announced on Friday, 23 February 2024, by Egyptian Prime Minister Mostafa Madbouly, who said that the UAE will pay $24 billion for the land rights of the Ras El Hekma area, and invest another $11 billion in various projects in the city. The $11 billion will come from the UAE’s deposits in the Central Bank of Egypt, which will be converted into a grant.
The UAE consortium that will develop the city is led by ADQ, a state-owned holding company that manages a portfolio of assets across various sectors, such as energy, utilities, logistics, health care, and real estate. ADQ said that it will partner with local and international companies to execute the project, which will span 170 million square meters of land.
The city will be designed according to the highest standards of sustainability, innovation, and livability, and will feature smart and green technologies, such as renewable energy, water recycling, waste management, and digital services. The city will also offer a variety of amenities and attractions, such as schools, universities, hospitals, parks, sports facilities, cultural centers, shopping malls, hotels, resorts, marinas, and an international airport.
The Benefits of the Project
The project is expected to have multiple benefits for Egypt and the UAE, as well as for the region and the world. The project will:
- Generate more than $150 billion in economic activity and attract more foreign direct investment to Egypt
- Create more than 500,000 direct and indirect jobs and improve the living standards of the local population
- Enhance the bilateral relations and strategic partnership between Egypt and the UAE, which are both key allies in the Middle East and Africa
- Support the development of the Suez Canal Economic Zone, which is a mega-project that aims to transform the area around the canal into a global trade and logistics hub
- Promote the tourism and hospitality sector in Egypt, which is one of the main sources of income and foreign currency for the country
- Showcase the UAE’s expertise and leadership in urban development and smart city solutions, and position it as a global player in the field
The Challenges and Opportunities
The project is also expected to face some challenges and opportunities, such as:
- The security and stability of the region, which is affected by various conflicts and crises, such as the war in Libya, the tensions in the Eastern Mediterranean, and the political turmoil in Sudan
- The environmental and social impact of the project, which will require careful planning and management to ensure the protection of the natural resources and the cultural heritage of the area, as well as the participation and inclusion of the local communities
- The competition and cooperation with other similar projects in the region, such as the New Administrative Capital of Egypt, the Neom city in Saudi Arabia, and the Dubai Expo 2020 in the UAE
- The innovation and creativity of the project, which will require the adoption of the latest technologies and best practices in urban design and development, as well as the collaboration and integration of various stakeholders and sectors
The project is expected to be completed within 36 months from the signing of the deal, and will be launched in phases. The project is seen as a milestone in the history of Egypt and the UAE, and a catalyst for the development and prosperity of the region.
