Egypt and the United Arab Emirates (UAE) signed a multi-billion US dollar partnership agreement on Friday for the establishment of a new urban, economic, and tourism centre in Ras El Hekma, 450km northwest Cairo, according to remarks by Egyptian Prime Minister, Dr Moustafa Madbouly, on the side lines of the contract signing ceremony. The agreement, which is expected to attract over $150 billion in investments, was signed in Cairo by Egypt's New Urban Communities Authority (NUCA) and UAE's ADQ, an Abu Dhabi-based investment and holding company. Prime Minister Madbouly said that the new project would result in injecting $35 billion in foreign direct investment (FDI) into the Egyptian economy within two months. "UAE will disburse an advance payment of $35 billion in two batches. The first payment will be of $15 billion within a week, ($10 billion to be transferred in cash from UAE, in addition to $4 billion that already exist as a deposit in the Central Bank of Egypt)." the prime minister further said. "Meanwhile, the second batch will be made within two months, as of date of the first batch, at $20 billion ($14 billion in cash transfer from the UAE, in addition to $6 billion that already exist as a deposit in the Central Bank of Egypt)," Prime Minister Madbouly stated that the Egyptian government would retain a 35 per cent stake in the Ras El-Hekma development. It is important to note that Egypt owes the UAE a total of $11 billion. However, according to the terms of the agreement, the debt now will be discharged when the project's advance payment is made in full. The amount will also be deducted from Egypt's total foreign debt. The north African country's economy has been impacted severely by a series of global and regional crises, including the COVID-19 epidemic in 2019, the Russia-Ukraine conflict, and the war in Gaza. As a result, the government has had to devalue its currency three times in the past two years. "This investment underscores our commitment to developing Ras El-Hekma into one of Egypt's most attractive coastal destinations through the construction of mega-infrastructure and development projects, working with partners such as Modon Properties and Talaat Moustafa Group, which will deliver value across multiple sectors of Egypt's vibrant economy." ADQ said in a statement sent to reporters.
