The UAE Ministry of Investment witnessed the signing of a landmark agreement between the UAE and Egypt, which will see the UAE invest $35 billion in various projects in Egypt, including the development of a premium coastal area.
The agreement, which was signed on February 23, 2024, by Egyptian Prime Minister Mostafa Madbouly and UAE Minister of State for Foreign Affairs Anwar Gargash, is the largest foreign direct investment in Egypt’s history, according to Madbouly. The agreement involves two main components:
- The Abu Dhabi-based sovereign wealth fund ADQ will acquire the development rights for Ras El-Hekma, a coastal area west of Alexandria, for $24 billion. The fund will lead a consortium that will develop the area into a world-class destination, with residential, commercial, tourism, and entertainment facilities. The project is expected to attract more than $150 billion in additional investments and to create thousands of jobs for Egyptians.
- The UAE will also invest $11 billion in other key sectors and projects in Egypt, such as infrastructure, energy, agriculture, health, and education. The funds will come from the UAE’s deposits at the Central Bank of Egypt, which will be converted into investments. The projects will aim to enhance the economic and social development of Egypt and to foster cooperation and integration between the two countries.
A Strategic Partnership Between the UAE and Egypt
The agreement is a testament to the strong and longstanding bilateral relations between the UAE and Egypt, which are based on mutual respect and trust. The agreement also reflects the UAE’s commitment to supporting Egypt in realizing its potential and achieving its vision of becoming a regional hub and a global player.
Gargash said that the agreement is a “historic milestone” and a “win-win situation” for both countries. He said that the agreement will boost the economic growth and the stability of the region, and that it will benefit the people of both countries and the wider Arab world.
A Positive Impact on the Egyptian Economy and Society
The agreement is expected to have a positive impact on the Egyptian economy and society, as it will provide a much-needed injection of foreign currency, which has been scarce due to the COVID-19 pandemic, the Russian invasion of Ukraine, and the Houthi attacks on the Suez Canal. The agreement will also help Egypt diversify its sources of income and reduce its dependence on tourism and remittances, which have been affected by the regional and global crises.
The agreement will also contribute to the improvement of the living standards and the well-being of the Egyptian people, as it will create more opportunities for employment, education, health, and entertainment. The agreement will also support the efforts of the Egyptian government to implement reforms and to achieve the sustainable development goals.
