Egypt to receive $35B from ADQ for Ras El Hekma project within 2 months
Updated 2/23/2024 7:53:00 PM
Arab Finance: Egypt will receive $35 billion in foreign direct investment (FDI) from Abu Dhabi Developmental Holding (ADQ) for the Ras El Hekma project, as per a statement from the Egyptian cabinet.
The country is set to receive the investment in two tranches; the first worth $15 billion within a week and the second tranche of $20 billion within two months.
Prime Minister Mostafa Madbouly made the announcement after the signing ceremony between the Ministry of Housing, Utilities, and Urban Communities, represented by the New Urban Communities Authority (NUCA), and ADQ.
Madbouly said that a sum of $24 billion will be direct liquidity, in addition to $11 billion in deposits that will be transferred in Egyptian pounds to be used in developing the project.
"This project does not represent a sale of assets, but rather a partnership whereby we will receive a portion of the amount at the beginning. We will also share with the developer throughout the duration of the project a percentage of the profits. This is one of the greatest ways to maximize the benefit from the state’s assets," Madbouly said.
As for the Emirati side, they expect an investment of not less than $150 billion to be pumped in the development of Ras El Hekma throughout the implementation of the project.
On February 8th, the General Authority for Investment and Free Zones’s (GAFI) Chairman Hossam Heiba announced that the authority settled on an Emirati consortium to carry out the Ras El Hekma tourist project in North Coast.
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