– UAE’s ADQ-led consortium commits USD35 billion to Egypt’s Ras El Hekma Project.

– Prime Minister Mostafa Madbouly anticipates project revenue of $150 billion.

– Development plans include a “next-generation city” spanning 170 square kilometers, featuring various amenities and investment zones.

The United Arab Emirates, led by ADQ, has pledged to invest USD35 billion into Egypt’s Ras El Hekma Project, marking one of the largest deals of its kind. 

Prime Minister Mostafa Madbouly stated that the project is expected to generate USD150 billion in revenue. 

Approximately 200 km west of Alexandria, Ras El Hekma is renowned for its upscale tourist resorts and pristine beaches. 

The development plan encompasses creating a “next-generation city” spread over 170 square kilometers, featuring investment zones, technology hubs, amusement parks, a marina, an airport, and residential and tourism developments. 

Prime Minister Madbouly revealed that the agreement includes a provision for Egypt to retain a 35% stake in the project, with expectations of attracting up to $150 billion in total investments. 

The influx of funds is anticipated to bolster Egypt’s economy significantly, addressing long-standing challenges in attracting foreign investment. 

Amidst positive market reactions, analysts foresee the potential financing bridging Egypt’s financial gap over the next four years. 

However, the timeframe for ADQ’s investments remains undisclosed. Egypt has grappled with a persistent shortage of foreign currency, leading to pressure on the Egyptian pound, government expenditures, and local businesses.

Inflation has surged to record levels, exacerbated by a mounting debt burden and reduced revenues from the Suez Canal due to disruptions caused by attacks on shipping.

“If the financing comes through as planned, we believe this (along with an upsized IMF program) should provide ample liquidity to cover Egypt’s financing gap over the next four years,” Farouk Soussa of Goldman Sachs told Reuters news agency.