Talaat Moustafa Group Holding has revealed its agreement with the Emirati holding company, ADQ, and Madinaty to collaborate on the general development of the Ras El Hekma area in the northwestern coast.
In a statement to the Egyptian Stock Exchange today, the company stated that the collaboration in implementing the Ras El Hekma project is in line with the group’s strategy to create continuous value that benefits Talaat Moustafa Group shareholders by maximizing returns and creating added value.
Prime Minister Mostafa Madbouly had previously revealed the full details of the historic deal for the development of the new city of Ras El Hekma on the north coast, which will be a partnership between Egypt, represented by the Ministry of Housing, and the United Arab Emirates, represented by Abu Dhabi Development Holding Company.
Madbouly stated that the Ras El Hekma development project is part of Egypt’s 2052 development strategy and covers an area of 17.8 million square meters, equivalent to 40.6 thousand acres.
He confirmed that the project will witness an investment of 150 billion dollars from the UAE throughout its implementation period. He also emphasized that the Egyptian state is fully open to foreign direct investment and welcomes such projects.
Details of the agreement:
The agreement includes acquiring the development rights of the Ras El Hekma area in exchange for 24 billion dollars. ADQ will also transfer 11 billion dollars from the deposits, which will be used to invest in major projects throughout the Arab Republic of Egypt.
Mohamed Hassan Al Suwaidi, the CEO of Abu Dhabi Development Holding Company, stated that the project is the size of a complete city, covering an area of 170.8 million square meters or 40.6 thousand acres.
He mentioned that 150 billion dollars will be invested by the UAE during the project’s duration.
Financial details:
Prime Minister Mostafa Madbouly confirmed that the first phase of the project includes a direct foreign investment of 35 billion dollars, with the funds entering the country within two months. The first installment of 15 billion dollars will be followed by a second installment of 20 billion dollars after two months.
The second phase will be in the form of profits share, with the Egyptian state receiving about 35% of the project’s profits.
According to Madbouly, it is planned to inject 10 billion dollars in liquidity from abroad in two weeks, along with 5 billion dollars from deposits from the UAE that will be directed to the project. Additionally, there will be a second installment of 14 billion dollars in direct liquidity and 6 billion dollars from the remaining UAE deposits.
