UAE Engages in $22 Billion Deal for Egypt Coastline Acquisition

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According to reports in Egyptian newspapers, the United Arab Emirates (UAE) has shown interest in purchasing the Ras El Hekma area along Egypt’s northern coast as a means of providing economic support to Cairo.

Al Mal, a privately-owned Egyptian newspaper, highlighted on Sunday that the proposed project for developing Ras El Hekma city involves finalizing agreements between the Egyptian Ministry of Housing and various Emirati sovereign entities, particularly the Ministry of Finance. These partnership contracts are expected to involve both in-kind and cash contributions, with the Emirati side intending to invest approximately $22 billion in exchange for acquiring land in the area.

Additionally, Al Youm Al Sabea, an Egyptian newspaper with close ties to the authorities, reported that the agreement between the Egyptian government and several Emirati companies and entities is nearing completion for the development of Ras El Hekma city. It is anticipated that this agreement will inject billions of US dollars into the Egyptian central bank, estimated at approximately $22 billion. The development of Ras El Hekma city aligns with Egypt’s long-term plan, the 2052 vision, aimed at positioning the city on the global tourism map.

The expected Emirati investments are anticipated to enhance the availability of US dollars in Egyptian banks, addressing the country’s worsening foreign currency shortage observed over the past couple of years. Despite the widening gap with the black market rate, Egypt has maintained its currency fixed against the dollar since March.

Years of significant borrowing from abroad have resulted in Egypt accumulating substantial foreign debt and facing a scarcity of the hard currency necessary to purchase essential commodities. The potential influx of Emirati investments represents a significant opportunity for Egypt to address its foreign currency challenges and stimulate economic growth.