Egypt secures £25 billion deal with UAE to sell Ras el‑Hekma amid economic turmoil
During a press conference, attended by representatives of the two nations, Prime Minister Madbouly announced that Egypt is set to receive an upfront payment of £11 billion in the upcoming week, with the remaining £14 billion to be transferred within the following two months.
Egypt sells city to United Arab Emirates
This venture counts as the largest direct foreign investment of its kind. Ras el-Hekma, positioned by the Mediterranean Sea, is to be transformed into a contemporary city, complete with residential quarters, tourist centres, educational establishments, an industrial zone, a finance and business district, and a marina as well as an airport.
The Egyptian government has been subjected to heavy domestic criticism. Ras el-Hekma is one of the country's most precious coastal regions. Critics assert that local investors should have been the ones to develop the area. Yet, Prime Minister Madbouly underlined that the Egyptian government will retain a 35 percent stake in the project's profits, despite it being a private investment - and one that the UAE consortium is commanding.
Egypt is plunging into crisis
The deal also has its drawbacks. It has been negotiated within the backdrop of Egypt's challenging economic climate, besieged by a fiat crisis, record inflation and foreign currency shortages.
Egypt is in negotiations with the International Monetary Fund (IMF) for a rescue package tipped to exceed £7 billion. The investment in Ras el-Hekma aims to stabilise the exchange rate, forge jobs and draw foreign currency into the country, which could offset the existing economic crisis.
The Egyptian government and its UAE partners harbour hopes that the Ras el-Hekma project will emerge as a beacon of modernity and development, drawing a global pool of investors and invigorating the Egyptian economy. Despite this, its execution and lasting impacts for the nation and its citizens will be the subject of attentive monitoring and evaluation.
