Abu Dhabi is in agreement following an advanced talks to develop the city of Ras El Hekma, located on the northern coast of the Mediterranean Sea in Egypt, a potential deal worth $35 billion that could contribute to achieving the state’s development goals, according to the statement issued by the Egyptian Cabinet of Ministers.
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In an interview with CNBC Arabia, Hossam Heiba, CEO of the General Investment Authority in Egypt, said that the investment for the total project is $35 billion, noting that an agreement has been reached on the final cost.
He also reported that an Emirati alliance had been selected to work with local partners to develop the Ras al-Hikma area, an area about 350 kilometers (217 miles) northwest of Cairo, after the Egyptian government received offers from several international investment alliances.
Ras El Hekma Development Project, a Qualitative Leap
For his part, Egyptian Prime Minister Mostafa Madbouly said:
“There is a legal and technical committee formed in the Council of Ministers to study investment offers in important projects that are scheduled to generate huge resources of foreign exchange.”
Madbouly added that the full details of the giant project will be announced soon after the completion of negotiations with investors, stressing the prominent role that these major investment projects play in achieving the country’s aspirations for development.
Providing thousands of job opportunities, operating Egyptian companies, and reviving the industrial sector.
UAE and Egypt.. a History of Strong Economic Relations
This project comes as a continuation of the Egyptian-Emirati march to consolidate the bonds of friendship and partnership between the two sister countries, but it is not the first of its kind.
In June 2023, Abu Dhabi Future Energy Company “Masdar”, the largest renewable energy company in Africa, announced the signing of an agreement with the “New and Renewable Energy Authority” in Egypt, to provide a plot of land designated for the development of a wind power plant project with a production capacity of 10 gigawatts.
With an investment cost exceeding $10 billion, which will constitute one of the largest wind energy stations in the world upon completion.
This project contributes to achieving sustainability by avoiding the emission of 23.8 million tons of carbon dioxide, equivalent to approximately 9% of current carbon dioxide emissions in Egypt.
The project will also contribute to achieving the goal of both Egypt and the UAE for renewable energy to constitute the largest proportion of the total energy mix by 2030.
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Source: Bloomberg
