UAE's Historic $35 Billion Investment In Egypt's Ras El-Hekma Marks A New Era

The Ministry of Investment of the UAE recently played host to a significant event in the realm of international finance and development. A historic agreement was inked between the Government of the Republic of Egypt and the Government of the UAE, with a private consortium led by ADQ, an Abu Dhabi-based sovereign investor, at the forefront. This agreement heralds the largest foreign direct investment in Egypt's history, with ADQ committing to invest US$35 billion in Ras El-Hekma, a coastal area situated roughly 350 kilometres northwest of Cairo.

Under this monumental agreement, ADQ will not only acquire development rights for Ras El-Hekma for US$24 billion but will also convert US$11 billion of deposits to be channelled into prime projects throughout Egypt. The ambitious vision for Ras El-Hekma is to transform it into a premier Mediterranean holiday destination, financial hub, and free zone. This development will cover more than 170 million square metres and feature world-class infrastructure aimed at boosting Egypt's economic and tourism sectors. The Egyptian government is set to retain a 35 percent stake in this venture.

Mohamed Hassan Alsuwaidi, Minister of Investment, expressed his optimism about this partnership, stating, "With this signing, a new chapter begins in the long-standing bilateral relations between our two nations. Underscored by mutual respect and trust, this investment demonstrates the UAE’s commitment to supporting the Government of Egypt in realising the abundant potential of the local economy."

Alsuwaidi further highlighted the significance of this large-scale infrastructure project for Ras El-Hekma. He pointed out its potential to generate widespread impact across various sectors, act as a catalyst for job creation, and draw significant additional foreign direct investments in the future. This initiative not only strengthens the economic ties between Egypt and the UAE but also sets a precedent for future collaborations aimed at economic development and growth.

With inputs from WAM