The Ministry of Investment of the UAE has overseen the signing of a historic agreement between the Governments of the Republic of Egypt and the UAE, represented by a private consortium led by ADQ, an Abu Dhabi-based sovereign investor. This agreement heralds the largest foreign direct investment in Egypt’s history, with ADQ committing to invest USD 35 billion in the development of Ras El-Hekma, a strategic coastal region situated approximately 350 kilometres northwest of Cairo.
As part of the agreement, ADQ will acquire development rights for Ras El-Hekma for USD 24 billion and convert an additional USD 11 billion in deposits for investment in key projects across Egypt. The envisioned transformation of Ras El-Hekma aims to establish it as a premier Mediterranean holiday destination, financial center, and free zone, spanning over 170 million square meters and boasting world-class infrastructure to bolster Egypt’s economic and tourism sectors.
The Egyptian government will retain a 35 per cent stake in the Ras El-Hekma development, ensuring collaboration and mutual benefit between the two nations. Mohamed Hassan Alsuwaidi, Minister of Investment, lauded the agreement as a testament to the enduring bilateral relations between Egypt and the UAE, founded on mutual respect and trust. He highlighted the UAE’s commitment to supporting Egypt’s economic growth and expressed confidence in the transformative impact of the Ras El-Hekma development, which is poised to catalyze job creation and attract further foreign investment in the years ahead.
The signing of this agreement marks a significant milestone in Egypt’s economic development journey, showcasing the country’s attractiveness to global investors and reaffirming its position as a prime destination for investment and growth in the region.
