Egypt explores new mega deals like Ras El-Hekma

Egypt is planning new developments along the Red Sea coast, with at least five new areas identified for deals similar to Ras El-Hekma, prime minister Mostafa Madbouly has said.

The UAE sovereign fund ADQ unveiled plans in February to invest $35 billion to build the “largest new city” in Egypt to promote tourism and drive economic growth.

The Abu Dhabi state-owned company acquired the development rights for Ras El-Hekma for $24 billion to develop the region as a Mediterranean holiday destination, including a free zone.

Additionally, ADQ will convert $11 billion of deposits that will be used for investment in prime projects across Egypt.

While specific details about the new Red Sea areas were not provided, Egypt has started promoting the Ras Banas headland to tourism developers.

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Saudi Arabia’s new investment of $5 billion will be separate from its deposits with the Central Bank of Egypt (CBE), Egypt Today newspaper reported, citing Madbouly at a press conference.

Riyadh will invest across several sectors in Egypt, he said.

This week crown prince Mohammed bin Salman announced that the Public Investment Fund (PIF), the kingdom’s soverign fund, will invest $5 billion into Egypt in a first investment phase.

In August Saudi investment minister Khalid Al Falih said that Riyadh planned to convert its $10 billion deposit with the CBE into an investment. 

Egypt’s new cabinet, formed in July, wants to treble foreign direct investment (FDI) into the country from the record $10 billion of FDI inflows recorded in  2022-23.

The ambitious target of $30 billion in FDI during the current financial year, which began on July 1, has been set as Egypt cuts budgets and slows down state spending projects.