Egypt : United Arab Emirates to invest $35 billion in Egyptian tourism and urban megaprojects

The United Arab Emirates will invest $35 billion in tourism and urban megaprojects in Egypt, announced Egyptian Prime Minister Moustafa Madbouli on Friday February 23, 2024.

“The agreement signed between Egypt and the United Arab Emirates provides for the payment of 15 billion dollars, within a week, and a second payment, two months after the first, of 20 billion dollars,” he said. -he clarified during a press conference.

Abu Dhabi Developmental Holding Company, the sovereign wealth fund of the emirate of Abu Dhabi which is better known as ADQ, has confirmed the signing of a $35 billion investment agreement with Egyptian authorities, indicating that the majority of these funds will be aimed at developing Ras el-Hikma, a city on the Mediterranean coast about 350 kilometers northwest of Cairo, into a global tourist destination.

“ADQ will purchase the development rights of Ras El-Hikma for $24 billion to make it one of the largest new cities developed by a private consortium,” announced the Abu Dhabi sovereign wealth fund, indicating that Ras el-Hikma is set to become a “holiday destination, (…) a financial center and a free zone with world-class infrastructure to enhance Egypt’s economic and tourism growth potential.”

“$11 billion will also be dedicated to investments in high-profile projects across Egypt,” added the sovereign fund led by the brother of the president of the United Arab Emirates, Sheikh Tahnoun bin Zayed.

These megaprojects are expected to boost economic development and help resolve Egypt’s foreign currency crisis as the Arab world’s most populous country faces growing financial woes following shocks from the COVID-19 pandemic, war in Ukraine and the conflict between Israel and the Palestinian movement Hamas.

“As a large-scale infrastructure project, the development of Ras El-Hikma will have a significant impact on many sectors, be a catalyst for job creation and attract significant additional foreign direct investment in the years to come. come,” said UAE Investment Minister Mohamed Hassan Alsuwaidi, who took part in the agreement signing ceremony.

According to the Egyptian Prime Minister, Emirati investments will also make it possible to resolve “the presence of two prices for the dollar”, in reference to the official exchange rate of the Egyptian pound and that practiced on the black market.