Egypt and the United Arab Emirates (UAE) have sealed an agreement to build a new city on Egyptโs northern coast to boost tourism, investment and foreign currency reserves. The deal was signed on Friday by Egyptโs Housing Minister Assem El-Gazzar and UAEโs Investment Minister Mohamed Al Suwaidi at Egyptโs New Administrative Capital.
The agreement was for the establishment of a new city in Ras Al-Hekma, spanning an 170-square-kilometer area situated west of Alexandria.
Speaking at the signing ceremony, Egyptian Prime Minister, Mostafa Madbouly, noted that the project would be carried out by Egyptโs New Urban Communities Authority and Abu Dhabi Development Holding Company which he said would inject 35 billion U.S. dollars of foreign direct investment into the economy in two months.
According Madbouly, the UAE is set to contribute a minimum of 150 billion dollars throughout the duration of the project, the largest FDI commitment in the nation’s history.
He said that the deal was the start of several investment agreements that the government was working on to increase foreign currency sources.
Under the terms of the agreement, which is anticipated to attract an estimated 8 million tourists upon its completion, Egypt has engaged in discussions with the International Monetary Fund for potential financial assistance to bolster its economic resilience.
By Hussein Jama
February 24, 2024
