UAE consortium led by ADQ, an Abu Dhabi-based sovereign investment fund, has inked a monumental agreement with Egypt, pledging a staggering $35 billion investment in Ras El-Hekma. This landmark deal represents Egypt’s largest-ever foreign direct investment and signifies a significant milestone in bilateral relations between the two nations.
ADQ, renowned as one of the region’s largest holding companies with a diverse portfolio across Abu Dhabi’s key economic sectors, will take the reins of Ras El-Hekma’s development with a $24 billion investment. Additionally, $11 billion of deposits will be converted for use in prime projects across Egypt.
This transformative megaproject holds the promise of attracting up to $150 billion in investments, as highlighted by Egyptian Prime Minister Mostafa Madbouly. The UAE’s sovereign fund has already established an office in Egypt, underscoring its commitment to fostering the country’s economic growth.
Ras El-Hekma, nestled on the Mediterranean coast 350 kilometres northwest of Cairo, is poised for a remarkable transformation into a world-class holiday destination, financial hub, and free zone sprawling across 170 million square metres. With state-of-the-art infrastructure, the city will feature investment zones, technology and light industry hubs, amusement parks, a marina, and an airport, as well as tourism and residential developments. Construction is slated to commence in early 2025.
Under the agreement, the Egyptian government will maintain a 35% stake in the development, signalling a collaborative approach to realising Ras El-Hekma’s potential. The UAE Minister of Investment, Mohamed Hassan Alsuwaidi, emphasised the project’s far-reaching impact, foreseeing job creation and substantial additional foreign direct investments in the foreseeable future.
The Ras El-Hekma development embodies Egypt’s growing appeal to global investors and tourists alike, positioning itself as a prime destination for international partnerships. With unmatched attractions, including hotels, yacht marinas, and entertainment facilities, Ras El-Hekma is poised to emerge as a premier Mediterranean destination.
Prime Minister Madbouly, addressing a press conference, announced that the deal would inject $15 billion within the next week and $35 billion over the next two months, with a portion of the funds converted into Egyptian pounds from existing UAE dollar deposits in Egypt’s central bank.
This monumental agreement underscores Egypt’s resilience and potential for growth, positioning the nation on a trajectory of sustainable development and economic prosperity. As Egypt navigates through economic challenges, partnerships of this scale underscore its resilience and potential for sustained growth.
