Egypt and UAE still in talks over $35bn Ras El Hekma deal

Unsplash.com/Daniel McCullough

Egypt and the UAE are holding talks on issuing contracts for the $35 billion Ras El Hekma development project, according to a news report.

“It’s still extremely premature. We are now in the stage of finalising contracts,” Nader El Biblawi, chairman of the Egyptian Travel Agents Association, told Reuters.

While no details were given on specific aspects of the negotiation, the project remains uncertain, the report said.

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Egypt in February signed a deal with ADQ to build the “largest new city” in Egypt to promote tourism and drive economic growth.

Egyptian housing minister Assem El Gazzar this month said ADQ will begin building the infrastructure for its Ras El Hekma development on the country’s north coast before the end of this year.

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The minister told Asharq Business that plans and licences were in place and work would start this year.

The Egyptian cabinet announced this month that the second tranche of the UAE’s $35 billion investment had been received. 

Negotiations for a similar deal with Saudi Arabia to develop Ras Gamila, an undeveloped coastal area near the resort of Sharm el-Sheikh, are still in the early stages.