Such a major agreement could boost Egypt's economy, which is facing a severe currency crisis.
The United Arab Emirates is in talks to buy and develop vast swathes of land on Egypt's Mediterranean coast, potentially helping the North African nation's struggling economy.
A UAE consortium has been selected to work with Egyptian partners to develop land in Ras el-Hekma, about 350 kilometers (217 miles) northwest of Cairo, CNBC Arabia reported on Wednesday, citing Egyptian officials. That's what it means.
Hossam Heiba, chief executive officer of the state-run Investment Free Zones Directorate, told the broadcaster that the initial estimate for the total project cost was $22 billion and that an agreement was expected soon. He did not provide further details or name any companies or organizations.
Egypt's Cabinet on Thursday announced new projects that would “earn huge amounts of foreign exchange” and create hundreds of thousands of new jobs, in an apparent reference to a multibillion-dollar development planned for the Mediterranean region. The government announced that it is preparing to announce the project. A representative of high-end luxury resorts.
The emirate of Abu Dhabi, one of the United Arab Emirates' seven emirates and the country's capital, is involved in the project, according to a person familiar with the talks cited by Bloomberg, while Bloomberg reported that Egypt is involved in the project. It was also reported that the company may retain around 20% ownership. A vast territory spanning 180 million square meters.
It said minority shareholders include stakes in real estate developer Talaat Mustafa Group and some Egyptian state-owned companies, but added that a final decision had not yet been made.
The mega-deal could strengthen Egypt's ties with the UAE, which is President Abdel Fattah al-Sisi's main patron and has previously provided economic support in the form of investments and other aid. .
Egypt is dealing with its worst currency crisis in decades, has experienced several currency devaluations, and is soon set to enact a new currency crisis, its fourth since early 2022.
The increase in foreign exchange could also have a positive impact on Egypt's negotiations with the International Monetary Fund (IMF) on a large loan, potentially bringing in other partners and securing around $10 billion in financing. There is.
Egypt is scheduled to repay a large amount of external debt this year, and the IMF has called for it to sell off state-owned assets, free up space for the private sector and allow flexible trading of its currency.
An IMF team visited Egypt last month to negotiate the possible revival and expansion of a $3 billion loan deal that stalled shortly after it was signed in December 2022.
Egypt, along with Qatar, is the main mediator in negotiations aimed at ending Israel's war in Gaza, starting with a renewed cessation of hostilities and an agreement with Palestinian prisoners in Israeli prisons and prisoners held in the enclave. Start the exchange.