The United Arab Emirates (UAE) is currently engaged in advanced negotiations to acquire and develop a substantial parcel of land along Egypt’s Mediterranean coast, a move anticipated to bolster the North African nation’s struggling economy.
According to reports from CNBC Arabia on Wednesday, an UAE consortium has been selected to collaborate with Egyptian partners for the development of the land situated in Ras el-Hekma, approximately 350 kilometers (217 miles) northwest of Cairo.
Hossam Heiba, CEO of Egypt’s state-run General Authority for Investment and Free Zones, revealed to the broadcaster that the initial estimated investment for the entire project stands at a staggering $22 billion, with an imminent agreement on the horizon. However, Heiba refrained from disclosing further specifics, including the identities of involved companies or entities.
Egypt’s cabinet subsequently announced on Thursday its intention to unveil new projects aimed at generating substantial foreign currency revenues and creating hundreds of thousands of job opportunities. The statement strongly hints at a multibillion-dollar development initiative slated for the Mediterranean coastline, an area known for its upscale luxury resorts.
It is important to note that, Egypt’s economy has been grappling with its most severe foreign exchange crisis in decades, marked by multiple currency devaluations. Another devaluation is expected soon, marking the country’s fourth since early 2022.
A substantial infusion of foreign currency could have far-reaching implications, potentially influencing Egypt’s ongoing discussions with the International Monetary Fund (IMF) regarding a significant loan. This could pave the way for additional partnerships and secure approximately $10 billion in financing.
