Arab Finance: Egyptian master developer MIDAR and Emirati-owned lifestyle conglomerate Majid Al Futtaim have signed a strategic partnership to develop a mixed-use urban project in New Cairo's Mada City, with an initial development value exceeding $3.1 billion, as per a statement issued by the Egyptian cabinet on June 22nd.

Under the partnership, the two companies will develop an integrated urban destination spanning approximately 553 feddans in Mada City, one of MIDAR’s master-planned developments in East Cairo. The project will comprise residential, commercial, hospitality, entertainment, and business components.

Development will begin with a first phase covering 200 feddans over the project's first four years. A second phase will include the development of around 300 feddans, while 53 additional feddans have been allocated for a shopping and entertainment destination. The land will be released progressively based on development progress and occupancy levels within the surrounding residential communities.

With the completion of the later phases, the project's total development value is expected to exceed $4 billion.

The master plan includes around 6,000 residential units alongside an integrated business district, hospitality offerings, retail outlets, and entertainment facilities aimed at creating a mixed-use destination for residents, visitors, and investors.

Speaking on the sidelines of the signing, MIDAR's CEO and Managing Director, Ayman Elkousey, said the project will be developed under a revenue-sharing model, with MIDAR's expected returns exceeding EGP 40 billion.

He noted that the agreement reflects continued investor confidence in Egypt's real estate market and builds on a series of partnerships established by Midar within Mada City that have attracted billions of dollars in investments.

For his part, Ahmed Galal Ismail, CEO of Majid Al Futtaim, noted that the project builds on Majid Al Futtaim's 27-year presence in Egypt, during which the company has invested approximately $2.8 billion and contributed to the creation of more than 226,000 direct and indirect jobs.

Majid Al Futtaim has established a significant presence in Egypt through assets including Mall of Egypt, City Centre Almaza, City Centre Alexandria, City Centre Maadi, Carrefour and Supeco stores, entertainment venues, and cinemas. Regionally, its portfolio includes developments such as Mall of the Emirates and Tilal Al Ghaf in Dubai.

The new project forms part of broader efforts to attract private-sector investment into large-scale urban developments and supports Egypt's urban expansion strategy and Vision 2030 objectives.