Egypt to get second part of UAE $35bn deal in coming weeks

Reuters

Egypt will receive the second tranche of payments from the UAE in the coming weeks, Prime Minister Mustafa Madbouly has said. 

Cairo has received $10 billion as part of the $35 billion deal struck with the UAE sovereign fund ADQ and has converted $11 billion from deposits from the Gulf state at the central bank, Egypt Today newspaper said, citing a cabinet statement.

The value of the second tranche set to be received in the coming weeks was not given.

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Madbouly said his government ministries are working on fulfilling the multiple commitments for the development project at the Ras El Hekma. 

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

The Abu Dhabi state-owned company will acquire the development rights for Ras El Hekma to develop the region as a Mediterranean holiday destination, including a free zone.

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The Egyptian government will retain a 35 percent stake in the development.

The government forecasts the project will secure investments of up to $150 billion during its development, which will create jobs and inject liquidity into the Egyptian economy, the report said. 

Earlier this month, Egypt signed an $8 billion expanded loan agreement with the International Monetary Fund, received an $8 billion funding package from the European Union, and a $6 billion loan from the World Bank Group.