UAE’s ADQ has unveiled plans to invest $35 billion in Egypt.
The Abu Dhabi wealth fund will acquire the development rights for Ras El-Hekma for $24 billion to develop the region into one of the largest new city developments by a private consortium. It will also convert $11 billion of deposits that will be utilised for investment in prime projects across Egypt to support its economic growth and development.
The significant investment marks a pivotal step towards establishing Ras El-Hekma as a leading Mediterranean holiday destination, financial hub and free zone to boost Egypt’s economic and tourism growth potential. The Egyptian government will retain a 35% stake in the Ras El-Hekma development.
“ADQ is a long-standing investment partner in Egypt, and we have demonstrated our ability to select opportunities that are aligned with our investment framework and benefit the Egyptian economy,” said Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ.
Ras El-Hekma be a next-generation city comprising mainly of tourism amenities, a free zone and an investment zone combining, among else, residential, commercial, and recreational spaces with seamless connectivity domestically and internationally. ADQ aims to unlock the appeal of Ras El-Hekma as a premium international financial and tourism destination adopting the latest cutting-edge digital and technological smart city solutions.
The fund intends to leverage Egyptian and international partners as part of its development and investment plans, with work set to commence in early 2025.
ADQ’s decision to invest in Ras El-Hekma is underpinned by its extensive track record of smart-growth planning and investing in similar large-scale infrastructure and development projects in the region.
ADQ’s experience in providing fully integrated infrastructure solutions across a broad range of services promises to bring significant benefits to the new development and is expected to attract over $150 billion in investments.
Ras El-Hekma’s master plan will pioneer innovative solutions that deliver a positive and lasting impact that is designed to attract foreign direct investment, boost trade, support Egypt’s private sector via an in-country localisation program and drive job creation to maximise economic benefits.
Egypt’s North Coast has garnered tremendous interest from global investors and tourists, showcasing its aptitude to benefit from international partnerships.
