The agreement between Egypt and consortium ADQ is the largest FDI in Egypt’s history, with USD 35 billion allocated for infrastructure development in Ras El Hekma, a coastal area located 350 kilometres northwest of Cairo.
The Ministry of Investment witnessed the signing of a historic agreement between the Government of the Arab Republic of Egypt and the Government of the United Arab Emirates, represented by a private consortium led by ADQ, an investment holding company in the Emirate of Abu Dhabi.
Under the agreement, which represents the largest foreign direct investment in Egypt’s history, ADQ will invest USD 35 billion in Ras El Hekma, a coastal area located about 350 kilometers northwest of Cairo.
In addition to acquiring the rights to develop Ras El Hekma for USD 24 billion, ADQ will also transfer USD 11 billion in deposits that will be used to invest in major projects across Egypt.
The vision is to develop the area into a leading Mediterranean holiday destination, financial hub and free zone spanning over 170 million square metres equipped with world-class infrastructure to enhance Egypt’s economic and tourism growth potential. The Egyptian government will retain a 35% stake in the Ras El Hikma development project.
Commenting on the partnership HE Minister of Investment Mohamed Hassan Al Suwaidi says the agreement heralds a new era in bilateral trade.
“With this signing, we begin a new era in the long-term bilateral relations between our two countries. This investment, which reflects mutual respect and trust, comes from the UAE’s commitment to supporting the Egyptian government in realizing the abundant potential of the local economy. As a large-scale infrastructure project, the planned Ras Al Hikma development will enhance the positive impact across multiple sectors, be a catalyst for job creation, and attract significant additional FDI in the coming years,” says HE Al Suwaidi.
Notes from the Editor: Interestingly, Egyptian President Abdel Fattah al-Sisi and European Commission President Ursula von der Leyen met in Cairo this month and committed USD 7 billion financial aid to Egypt, of which President Abdel Fattah al-Sisi says was a “paradigm shift” in their strategic partnership. The deal includes EUR 5 billion in loans, 1.8 billion in investments and hundreds of millions to fund other projects — including fortifying Egypt’s borders.
