Egyptian Prime Minister Mostafa Madbouly on Friday revealed further details regarding the Ras al-Hikma development project, done in partnership between Egypt and the UAE.
Madbouly said that the project will cover two stages. The first stage involves Emirati investments worth $35 billion that will enter the state within two months, of which the first installment is $15 billion, then $20 billion.
The second stage will see the state earn 35 percent of the project’s profits.
He explained that “Otherwise, the UAE side expects to pump no less than $150 billion throughout the duration of the project’s implementation. Thus, in addition to the urgent financial component estimated at $35 billion, the state will have no less than $150 billion in Emirati investments throughout the project’s implementation period.”
According to the financial agreement, Madbouly said that the first batch, estimated at $15 billion, will be divided into $10 billion in cash liquidity, and five billion in waiver of the UAE’s deposits in the Central Bank of Egypt.
The second batch, estimated at $20 billion, will be divided into $14 billion in cash liquidity, and six billion in deposits, thus Egypt’s external debt will decrease by $11 billion, Madbouly said.
Madbouly’s remarks came during a press conference in the New Administrative Capital, on Friday, to announce the largest major investment deal in partnership with UAE, under the title “Egypt and UAE, a Partnership for the Development of Ras al-Hikma.”
The Prime Minister said that the representative of the Egyptian side in the project will be the New Urban Communities Authority and the Abu Dhabi Developmental Holding Company (ADQ) from UAE side.
The project includes establishing hotels, entertainment projects, tourist resorts, a financial and business district, and an international airport, he said, and aims to attract eight million tourists.
Madbouly added that this project will be the largest of its kind, as it seeks to develop a city with an area of 170 million square meters or more than 40,600 acres.
He pointed out that the Abu Dhabi Developmental Holding Company will establish a holding company under the name “Ras al-Hikma” that will be responsible for the project, with Egyptian contributions.
“The project’s flows curb inflation and aim to eliminate it, and eliminate the presence of two prices for the US dollar,” the prime minister said.
