The UAE is in talks to develop beach land in Egypt worth $22 billion Business and economic news
Such a major agreement would boost the Egyptian economy, which is facing a severe foreign exchange crisis.
The United Arab Emirates is in advanced talks to buy and develop a large plot of land on Egypt’s Mediterranean coast in a deal that could boost the North African country’s troubled economy.
An Emirati consortium has been selected to work with Egyptian partners to develop land at Ras El Hekma, about 350 kilometers (217 miles) northwest of Cairo, CNBC Arabia reported, citing an Egyptian official on Wednesday.
Hossam Haiba, CEO of the state-run General Authority for Investment and Free Zones, told the radio that the initial estimate for the total project was $22 billion, and that an agreement was expected soon. He did not provide further details or mention the names of any companies or entities.
The Egyptian Cabinet said on Thursday that the government is preparing to announce new projects that will “generate huge amounts of foreign currency” and create hundreds of thousands of new jobs, in a clear reference to a multi-billion-dollar development project planned along the Mediterranean coast in An area of luxury resorts.
The emirate of Abu Dhabi, one of seven states in the UAE and the country’s capital, is participating in the project, according to unnamed people familiar with the talks reported by Bloomberg, which also reported that Egypt may retain ownership of about 20 percent of the project. A vast area of 180 million square meters.
She added that the minority stake will include a share for Talaat Mostafa Group, a real estate development company, and some Egyptian government agencies, adding that a final decision has not been taken yet.
A grand deal can strengthen relations between Egypt and the EmiratesHe is a major supporter of Egyptian President Abdel Fattah El-Sisi, who has previously offered economic support in the form of investments or other aid.
Egypt is dealing with its worst foreign exchange crisis in decades, having experienced several currency devaluations, and is expected to enact another soon – its fourth since early 2022.
The strengthening of the foreign currency could positively affect Egypt’s talks with Egypt International Monetary Fund (International Monetary Fund) on a large loan, which may attract other partners and secure financing worth $10 billion.
Egypt is scheduled to pay off its heavy external debt this year, and the International Monetary Fund is pressuring it to sell state assets, make room for the private sector, and allow its currency to trade flexibly.
An IMF team was in Egypt last month to negotiate the revival and possible expansion of a $3 billion loan agreement that faltered shortly after it was signed in December 2022.
Egypt, along with Qatar, is considered a key mediator in the talks aimed at ending it Israel’s war on Gazastarting with another cessation of hostilities and the exchange of Palestinian prisoners held in Israeli prisons for prisoners held in the Gaza Strip.
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